Friday 25th June 2010

An Early Day Motion calling for the full regulation of the letting industry was instigated after lobbying by NFoPP – and ARLA in particular – in an attempt to keep the whole debate alive after the new Government said it plans no further legislation.

EDM233 has been supported by some 30 backbenchers, including Labour MP Graham Jones.

He has printed the NFoPP lobbying letter on his website.

The letter, from Peter Bolton King, says: “Rogue landlords and letting agents continue to operate, to the detriment and expense of consumers and the market as a whole.

“A minimum requirement must be surely be consumer redress and protection of all funds taken from the public, not just tenants’ deposits. NFoPP has long campaigned for the mandatory regulation of letting agents to ensure that consumers are protected and rogue letting agents are not allowed to operate.

“Although we understand that some MPs have expressed concerns about the introduction of the register of landlords, the regulation of letting agents really is vital to eliminate unscrupulous letting agents from the rental market, and to protect tenants and landlords alike.”

NFoPP has also been behind a series of parliamentary questions put by MP Andrew George, raising concerns about the private rented sector.

Asked what the Government planned to do regarding the Rugg Report – which proposed regulation of both landlords and agents – CLG minister Andrew Stunnell said: “This Government are committed to ensuring an appropriate balance of rights and responsibilities between landlords and tenants.

“We have carefully considered the recommendations of the Rugg Review of the private rented sector. But we think that the existing legislative framework for the sector already achieves the right balance. We, therefore, have no plans to introduce further regulation. However, we continue to consider other issues highlighted by the Review, including the potential for greater investment in the private rented sector.”

He went on to express support for the professional bodies. He said: “Residential letting and managing agents are not currently subject to specific mandatory regulation, although, in common with all commercial organisations, they are bound by over-arching fair trading legislation.

“There are three well-established voluntary regulatory schemes which provide effective protection for consumers. I am keen to work with the industry to explore how consumers can be made more aware of the advantages of using an agent who belongs to one of these schemes.”

Housing minister Grant Shapps, responding to another question, also confirmed that tenancy deposit protection would remain in place.

He said: “I have no plans to change the requirement for landlords to protect any deposits taken under an Assured Shorthold Tenancy. The three existing schemes operate under contracts which come to an end in April 2012. We will, therefore, take steps to ensure that schemes are in place which enable landlords to meet their obligations beyond April 2012.”