Housing Minister Grant Shapps is urging landlords to seek out letting agents running a new rent protection scheme.
In a snub to the Association of Residential Letting Agents (ARLA), the letting industry main player for self-regulation, the minister endorsed the newly launched rival scheme SafeAgent.
Despite years of lobbying and campaigning for industry regulation, ARLA has missed out on a huge publicity coup as SafeAgent has picked up backing from several consumer groups.
The minister’s endorsement came on the eve of SafeAgent opening to the public after spending six months signing up 1,200 letting agents to the network.
SafeAgent vets agents before they can join the scheme and display the official logo. The agents have to show they have strict consumer money protection procedures in place.
Now, the Communities and Local Government department has publicised SafeAgent on the government web site and advises landlords and tenants to use letting agents in the scheme.
The minister said: “The private rented sector provides a valuable source of accommodation for over three million people in England, and the vast majority of them are happy with the service they receive.
“That’s why I have promised not to wrap the sector in red tape, but instead to work with the industry to help them develop their own plans to tackle those bad landlords, and with councils to throw the book at those who don’t live up to their responsibilities.”
He explained that he was not in favour of regulating letting agents.
“This is exactly the sort of measure the private rented sector needs – simple and sensible changes that are driven by industry and designed to deliver results,” he said.
“I would urge letting agents to sign up immediately, so they are not left behind when consumers vote with their feet.”
ARLA has tried to persuade the government to regulate the lettings industry for several years - and many suspect that’s because the organisation wants to take control of compliance.
Ian Potter, ARLA’s operations manager, said: "We are disappointed that the housing minister has again refused to implement any kind of regulation on the private rental sector.
"There is no requirement for lettings agents or landlords themselves to take any kind of professional qualification. This means their professionalism cannot be guaranteed. In today's market, when people are becoming increasingly desperate to find a home, there will be increasing opportunity for unethical operators to take advantage of consumers.
"However, we have no power to force agents to become licensed and, as long as there is no centrally-led regulation, our work is being undermined."
