Some 40 per cent of letting agents in England have not yet signed up to a mandatory redress scheme - and in less than two weeks' time they risk a fine of £5,000 or even possible closure.
That's the result of research by one of the three ombudsman-style services open to agents, the Property Redress Scheme. "We're hitting the phones to advice uncommitted letting and property management agents of their obligations" says a Property Redress Scheme spokesman.
The schemes are run by The Property Ombudsman and Ombudsman Services Property as well as the Property Redress Scheme.
If the 40 per cent figure is correct, it means there has been almost no new letting agency sign-ups to a redress scheme since April, when the government also used a 40 per cent figure.
The government's objective in forcing the redress is to provide a service of impartial dispute resolution when complaints are raised about letting agents by landlords or tenants - much as there is a channel for this service in the sales sector already.
If any lettings agency is found not to be in one of three official schemes, it can be fined up to £5,000. Local councils' trading standards offices are charged with policing the law.
The government has previously made clear that the lettings redress schemes must be impartial, properly staffed and by people who understand lettings law, be open to all letting and property management agents, and that membership requirements should not unfairly restrict access to the scheme - for example, a compulsory requirement to sign up or comply with a code of practice.
The redress schemes must also be free to complainants, be easy to access, and provide full data about complaints in their annual reports.
Comments
As there has been a 27% decrease in the number of Trading Standards Officers since 2009 how do you think this is likely to be effective legislation They will be playing catch-up for the first two years at least I would say. The "rogue" agents will continue as before, and of course landlords and tenants NEVER ask such a question, because they don't think to ask it, and also they don't know it's a requirement.