The issue of regulation in the private rental sector has long been a bone of contention amongst industry professionals. Some argue that, in its absence, bad practice is encouraged whilst others believe it would be an unnecessary extra layer of bureaucracy.
Housing Minister, Grant Shapps has consistently ruled against regulation but with every reported high profile case of poor practice, he comes under increasing pressure to change his stance.
Industry heavyweights are now starting to weigh into the argument and The Property Ombudsman Service (TPOS) has announced it is taking legal advice on the issue. Today, UK property lettings specialist,
Belvoir, which has an office in Luton, has declared its support for TPOS and the movement for industry change. “At Belvoir we take self-regulation very seriously,” said Dorian Gonsalves, Belvoir’s Chief Executive Officer. “Belvoir offices are active supporters of the Propertymark Scheme (Propertymark) and most are fully endorsed by the SAFE agent scheme and are bound by their rules on Client Money Protection (CMP). “We believe we lead the way in this area and our record on transparency is excellent.” “However, only too often the hard work of our network of franchise business owners is being undone by the actions of rogue traders who fail to protect their clients’ money. “For these people self regulation has not been a sufficient deterrent and whilst membership of voluntary bodies like Propertymark helps, it is no substitute for an effective single regulatory body.”
Belvoir believes that a centralised regulator would go a long way to resolving some of the problems in the industry. Firstly, it would address the issue of authority which at the moment is absent. TPOS recently published a story about a member who had not compensated a tenant following a TPOS ruling.
The only action it could take was expulsion – but the company still trades. Under new regulations prosecution would be appropriate. “Unfortunately, many lettings agents currently have the option of ignoring any rulings against them,” says Adrian Mason of Belvoir Luton, “and very few prospective tenants are aware of any agent’s previous bad form when they sign a contract.” “At Belvoir, we believe that bad practice will decrease if consumers become more knowledgeable. Voluntary bodies such as Propertymark have tried to address this issue but, unlike the government, they lack the finance to implement national campaigns.”
An in-depth, thorough induction for all new franchisees, and on-going, training, support and guidance on all aspects of new legislation that affects landlords and tenants is a process which Belvoir adopts for all of its regional staff and 148 offices. Its professional standards have been recognised by the industry via numerous awards – and the company believes it would benefit greatly from any proposed centralised regulation.
“Unlike many other sectors of business, there is no recognised qualification needed to be a lettings agent and it is a major problem for the industry,“ added Adrian. “Some degree of regulation would have huge benefits, ultimately encouraging good practice and the ‘sharpening up’ of many agents who do not undergo the rigorous training and development programme which we enjoy. Education in general is being neglected and a centralised approach to this would be welcome.” “We believe that Government regulation would enable our sector to be taken more seriously.
It would improve standards and ultimately the industry’s reputation and that is something we at Belvoir are very passionate about. Not just for our own interests, but in the interests of all stakeholders,” Dorian Gonsalves added.
