Uncontrolled Agents

According to the Association of Residential Lettings Agents (ARLA) the lettings industry is concerned by an influx of unregulated estate agents switching to letting roles because of the downturn in the residential sales market.

A survey of its members showed that 76% reported that estate agents in their local area have moved into lettings as a result of the market in the last six months.ARLA believes that a high proportion of these agents are not being regulated properly.

Ian Potter, operations manager of ARLA says,“In order to make the transition from an estate agent to a lettings agent, they need to have studied more than a hundred different pieces of legislation, and pass minimum competency tests to ensure their ability to advise clients to the required standards...This is a big concern for landlords and consumers. Those consulting an agent need to be absolutely sure they are getting the best advice possible to ensure the safety of their investment.

Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA) commented: “We would always advise consumers to use qualified and regulated agents, because that way they can have confidence in their transaction...I can understand why estate agents, or unregulated start up agents, have appeared in the lettings market after a tough year, but they could get themselves and their clients into trouble if they aren’t completely aware of the relevant legislation...An appropriate licensing scheme across the property industry would put an end to situations such as this, and the worries that accompany them, in a stroke.”