Government introduces last minute amendment to Enterprise and Regulatory Reform Bill
On 16th April 2013 the Government overturned Baroness Hayter’s proposed amendment to the Enterprise and Regulatory Reform Bill, which would have seen letting agents regulated by the Estate Agency Act 1979 and has introduced its own amendment to the bill to “require letting and managing agents in the private rented sector and managing agents in the residential leasehold sector to offer landlords and tenants access to an approved redress scheme”.
On 16th April 2013 the Government overturned Baroness Hayter’s proposed amendment to the Enterprise and Regulatory Reform Bill, which would have seen letting agents regulated by the Estate Agency Act 1979 and has introduced its own amendment to the bill to “require letting and managing agents in the private rented sector and managing agents in the residential leasehold sector to offer landlords and tenants access to an approved redress scheme”.
In a letter to UKALA, Mark Prisk stated that “Government does not consider that full regulation of letting and managing agents, provides the answer, and is concerned that this could impose a significant regulatory burden which would ultimately be passed across to tenants and potentially reduce innovation and competition within the industry”.
Caroline Kenny, UKALA Executive, comments:
“UKALA welcomes the Government’s announcement that it has listened to the industry’s concerns and intends to use the Enterprise and Regulatory Reform Bill to tackle the difficult issue of providing consumer redress in the private rented sector.
“Whilst well intentioned, the previous proposals that letting agents to be brought within the scope of the Estate Agents Act 1979 fell short of providing a genuine solution, and we are glad that the government has decided to work with UKALA and others to ensure that future regulation is not only proportionate to consumer need, but also fit-for-purpose.
“At UKALA, we have long been of the opinion that a bespoke solution was needed to address the issue of accountability and transparency within the lettings sector and that a poorly devised regulatory approach could do great damage to the sector at a time when it’s growth is essential to providing a healthy housing market. We must not forget that the vast majority of letting agencies are small and medium sized businesses which will face greater hardship complying with additional burdens.
“UKALA is committed to ensuring that tenants benefit from a wide choice of quality property and that properly trained, professional letting agents are poised to deliver this level of service to the consumer. We therefore look forward to the forthcoming consultation period and working closely with our membership, the industry and government in the development and implementation of future bespoke letting agent regulation.”