News from Sheffield Labour

Sheffield MP Clive Betts in pledge to drive up letting agent standards

Clive Betts MP (Sheffield Attercliffe) joined the Association of Residential Lettings Agents (ARLA) at the launch of a new licensing scheme that promotes the highest standards for letting agents in the UK.

Clive Betts MP said:

“Hundreds of thousands of pounds of consumers’ money is lost each year to unprotected, unprofessional and unethical letting agents.

“There has been resurgence in the private rented sector in recent years. All the research – and the evidence from my constituency work – shows that private sector tenants are the least satisfied and experience the greatest problems.

“There is an urgent need to lift the quality of performance in the whole lettings’ process and a need to ensure that consumers’ interests are protected in every letting transaction.”

A recent survey by the Association of Residential Lettings Agents (ARLA) revealed that 95 percent of consumers believe that letting agents should be licensed. For the vast majority, it was also a shock to learn that there is currently no validated licensing scheme in place. 

Clive Betts pointed out that:

“A growing number of tenants and landlords are losing out to cowboy agents in the following ways:

* loss of funds through a lack of client money protection
* no professional indemnity insurance in place to protect a consumer from a serious error
* loss of monies due to the unlicensed agency holding the funds going into administration
* poor advice to landlords (for example about their legally required deposit protection responsibilities), which can result in loss of the deposit for tenants and/or a fine for landlords
* no commitment to best practice or any form of independent redress scheme for when things go wrong”

Ruth Lilley, Head of Membership and Professional Development (ARLA) said:

“ARLA has lobbied the Government for 10 years to assist us in establishing higher industry standards.

“For too long the rental sector has been seen as the black sheep of the property market with a lack of regulation of and a requirement for redress to protect the consumer when the agent’s failings are to the financial detriment of that consumer.

“The ARLA Licensing Scheme will create the gold standard for letting agents in the UK, offering consumers best practice service and advice – as well as a commitment to the protection of their money.”

From today, all ARLA members will need to be licensed as part of their membership, which includes the following requirements:

* each individual member needs to hold a gold standard professional qualification relating to letting and property management
* every member must undertake Continuing Professional Development
* each agent must ensure that they have client money protection schemes in place to protect all tenant and landlord funds held by their office
* all clients funds are required to be subject to annual independent audit
* agents must have professional indemnity insurance in place
* agents must sign up to an independent redress scheme
* agents must abide by a strict code of practice

None of these is compulsory for letting and property management agents at the moment.

Clive Betts said:

“This is a major step forward.

“Every potential tenant in Sheffield should seek out agents who are part of ARLA and avoid those who aren’t.

“I want to see the introduction of competency standards for all letting and property management agents.”

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