ASSOCIATION OF RESIDENTIAL LETTING AGENTS LICENSING SCHEME

For some years concerns have been expressed both by professional organisations and the general the public about Letting Agents demonstrating poor ethics, fraud or committing criminal action in relation to client monies.  There has recently been public outrage after accusations have been levelled at directors of certain companies where it has become apparent that there has been abuse of the system resulting in substantial discrepancies in their client accounts. Unqualified agents rarely have any client protection. Sadly even as close to home as Worcester there are ongoing accusations of theft, misappropriation and money laundering in relation to the activities of one prominent company.

As a consequence of various examples of criminal activity there has been an increased demand for licensing and a tightening of working practices. Whilst licensing has always seemed sensible, it would appear this is now enevitable and all residential letting agents in the UK will soon need to be registered and licensed to continue trading. ARLA is promoting this and lobbying parliment, and in this regard the following ‘early day motion’ has been submitted by James Plaskitt

“That this House notes with concern that the private lettings sector is currently unlicensed, a situation which poses risks to both landlords and tenants; further notes that without rules and standards, many people could be putting their money in the hands of people who are not members of a professional body, not obliged to maintain separate client accounts with rent money and tenants’ deposits as well as other clients’ funds, do not offer consumer redress, are unlikely to have professional indemnity insurance, are not professionally qualified, or are not members of a tenancy deposit scheme; believes the licensing of letting agents is necessary to eliminate unprofessional, unqualified and unethical agents from the rental market, and to protect the consumer from unscrupulous letting agents; believes that the Association of Residential Letting Agents licensing scheme will provide a model that will drive up standards and can inform the Government’s thinking on the licensing of letting agents; and urges the Government to consider making the licensing of letting agents mandatory.”

 as of this morning this motion has been signed by 36 MP’s.

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