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Written by rosalind renshaw

The compulsory regulation of lettings agents combined with the introduction of minimum professional standards for all agents could generate over £20m of benefits per year to the UK economy, new research from RICS has claimed.
 
The RICS said: “Currently, anyone can set up a lettings agency without appropriate qualifications or industry knowledge.

“Not only does this mean that tenants and landlords are subject to potentially unscrupulous practice with no comeback, but it is also costing the wider economy millions every year.”
 
Its research suggests that setting up compulsory regulation and a system of professional standards equivalent to NVQ Level 3 would cost an initial one-off £45m plus £639,000 annual running costs, before the payback of £20m annually.

The RICS argues that new statutory requirements would pay for themselves in 2.2 years, would avoid complex red tape, and offer the consumer increased levels of protection.
 
The RICS says that the issue of lettings agent regulation is moving quickly up the political agenda with both Labour and the Liberal Democrats set to make it a manifesto commitment in 2015.
 
Peter Bolton King, RICS global residential director, said: “These findings demonstrate exactly why the Government needs to act, not just to safeguard the thousands of tenants and landlords who fall victim to unscrupulous practice, but also to relieve pressure on the wider economy.

“It’s encouraging that the introduction of professional standards and new compulsory regulation proposals being sought by RICS has support from other industry players and consumer groups, and has now received cross-party support. But what we need now is action.
 
“RICS has long called for a single regulatory and redress system for letting agents, which this survey demonstrates is clearly supported by the overwhelming majority of consumers. Until this happens, we recommend that tenants use a lettings agent that is a member of a professional organisation, such as RICS.”

The research for the RICS was contracted out to TBR, an economic research consultancy. It looked into the likely cost and benefits of bringing letting agents within the scope of the Estate Agents Act 1979, and also introducing statutory minimum professional standards for all agents, both residential and sales.

Market research was conducted last August by ComRes, which interviewed 1,014 adults over the telephone who have rented a property in the last two years in one of 12 constituencies.

The constituencies were: Hendon, Thurrock, Truro & Falmouth, Newton Abbot Waveney, Wolverhampton South West, Watford, Warrington South, Bedford, Brighton Kemptown, Brentford & Isleworth and St Austell & Newquay.

Comments

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    Funny how this coincides with RICS making their entry level associate membership 'easier'

    • 11 February 2013 09:38 AM
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    Does anyone really think government/the public would look at the NFOPP/ARLA board (and the likes thereof) and say "yes these people are the ones to regulate a crucial industry"

    • 07 February 2013 14:11 PM
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    What nonsense. No comeback. The UK has one to the best legal systems in the world. If anyone breaks the law the wronged party has recourse through the courts.

    Name one instance when more Red tape helped the economy.

    The want-to-be regulators in this industry are only interested in it's own self promotion and paying themselves quango level salaries and nothing more.

    • 07 February 2013 13:57 PM
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    I can't see any reason why regulating letting agents would benefit the UK economy.

    All it will do is reduce the number of letting agents in the market place and increase the cost of the service they provide.

    I do though think that regulating letting agents would be a huge benefit for RICS and ARLA.

    • 07 February 2013 13:28 PM
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    They forgot to mention that it's also just as easy for anyone to create an 'accreditation scheme'.

    I have the option for RICS membership, i'm two months away from finishing a building surveying degree, however would I get any value for money from the circa £1500 it'll cost me to join?

    Whilst I back accountability of agents, imposing fees that will bring in the quoted £20m for the economy is clearly the wrong approach to have. It shouldn't be a money making scheme.

    • 07 February 2013 10:32 AM
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    In my view, which I held for nearly forty years in business, is that the RICS has always had an agenda to completely control the residential property market.
    NFOPP - do not take your eye off the ball for one moment on this - you owe it to your members.

    • 07 February 2013 09:08 AM
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    I wonder how many RICS members would consider themselves particularly active in the residential lettings market?

    Who is to benefit from this expenditure and provide the certification? A role for the RICS perhaps?

    Sit down Peter!

    • 07 February 2013 08:35 AM
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