The government is working with National Trading Standards to tighten up criteria for letting agents joining redress schemes.

Currently agents must be in either The Property Ombudsman scheme or rival service Property Redress – The PRS.

Likewise agents or landlords who take a deposit in relation to an assured periodic tenancy must protect it in a government-approved tenancy deposit protection scheme. 

But a government minister in the Housing, Communities and Local Government ministry, Baroness Taylor of Stevenage, suggests compulsory membership of these schemes may become tougher.

In a written answer to another member of the House of Lords, she says: “Membership of a scheme and protection of a deposit is a requirement of trading, rather than a wider accreditation of an agent’s conduct or legitimacy

“The government recognises the harm caused when fraudulent operators misuse legitimate schemes. 

“Following recent cases, the Department has worked with tenancy deposit protection providers to strengthen safeguards, including adding a fraud disclaimer to insured deposit protection certificates, enhancing tenant communications about tenancy fraud, and reviewing verification and due diligence checks.”

But then, significantly, she adds: “We are actively working with National Trading Standards, redress schemes and other approved government schemes to consider whether further verification requirements are needed. My department is also exploring options for further regulation of the property agent sector.”

The Baroness was answering a question from Baroness Thornhill, a Liberal Democrat, who asked: “What checks are required, if any, before a letting agency is admitted to a government approved property redress scheme or tenancy deposit protection scheme; [and whether the government] consider those checks are sufficient to prevent fraudulent operators from obtaining accreditation; and whether they plan to introduce additional verification requirements.”