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Written by rosalind renshaw

MPs have been told of tenants’ bewilderment when they go into an estate agent to find that staff selling houses on one side of the office are regulated, and their colleagues who are letting homes are not.

Tory MP Mark Pawsey, who represents Rugby, said it was one of the most compelling pieces of evidence considered by the CLG Select Committee reporting into the private rented sector.

Pawsey was on the committee, alongside its chairman Clive Betts, who presented the report – which calls for wholesale reforms – to the Commons.  

Betts said that many landlords do an excellent job, and efforts need to target rogues. He also said there was a real need to crack down on bad letting agents.

Betts also criticised letting agents’ fees charged to tenants, saying that “many” were unclear and unreasonable.

He said: “The first step has to be transparency. Wherever a property is advertised to let –in a window, on a website or in a newspaper – it should be accompanied by a full breakdown of the fees that a tenant is likely to have to pay.

“No more hooking the tenant with a property that they like, and then, once they are interested and are looking to sign the tenancy agreement, letting the hidden fees come out, little by little – drip, drip.

“We are talking about costs that the tenant never anticipated, and that can run into the hundreds of pounds. Also, there should certainly be no more charging the landlord and the tenant for the same service; that is completely and utterly unacceptable, and should be banned.”

Betts said that councils should have more freedom over licensing schemes, and should be given powers to force landlords to join accreditation schemes – all of which are currently voluntary. He singled out an accreditation scheme in Leeds as being excellent.

The committee’s report main recommendations include the regulation of all letting agents, making both professional indemnity and client money protection insurance mandatory, and making electrical safety checks mandatory.

The committee says letting agents’ fees should be deemed illegal if they are not properly spelled out, but says it may go further than this. It will take a look at Scotland, where fees were banned last winter, and return to the subject next year.

Comments

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    @Arnie from Newington spot on! think banks.....

    • 23 July 2013 17:47 PM
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    I think when people believe that regulation is the answer it shows a lack of faith in the free market.

    Since 1988 the freemarket has been the driving force behind the rental market and despite the claims by special interest groups it has worked out very well.

    Now the special interest groups are arguing for a controlled private rental sector and their main tools to achieve this objective are slander and lies.

    • 23 July 2013 17:45 PM
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    Never read such garbage; Pawsey and Betts are, like most politicians, absolutely clueless. Their comments and quotes are inaccurate and ill-informed. You have to read the quote; “MPs have been told of tenants’ bewilderment when they go into an estate agent to find that staff selling houses on one side of the office are regulated, and their colleagues who are letting homes are not” to actually believe it. Have you ever heard such total bull…. Politicians making it up as they go along will never result in satisfactory outcomes. Regulation, driven by political agenda will result in disaster for an industry that adds so much to the economy. Go away!

    • 23 July 2013 17:30 PM
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    " MPs have been told of tenants’ bewilderment when they go into an estate agent to find that staff selling houses on one side of the office are regulated, and their colleagues who are letting homes are not."


    "Tory MP Mark Pawsey, who represents Rugby, said it was one of the most compelling pieces of evidence....."

    Really! In my experience cannot recall a time when this question was EVER brought up by visitors to the office.
    I am not suggesting that I am against more properly thought through regulation, but where is the proof of this particular so-called evidence?

    • 23 July 2013 12:33 PM
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    Some Letting Agents, don't understand why some tenants and Landlords still don't use Letting Agents that have already invested in accreditation and use CMP schemes.

    • 23 July 2013 10:36 AM
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    Most objective commentators within the industry can't see the objections either, so no wonder tenants are bewildered.

    Long as private landlords are regulated as well, or only alkternative is to let through a regulated agent, that's fine. Regulate and licence agents and not private self managing landlords and just watch the disaster that will ensue

    • 23 July 2013 09:55 AM
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    Banning tenants charges increases rents as landlords costs go up to cover the lack of income from tenants charges

    Regulation however, is welcomed.

    • 23 July 2013 09:53 AM
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    All seems reasonable. Can't see that there is an argument for NOT regulating letting agents, so what's the problem?

    • 23 July 2013 08:47 AM
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