The Office of Fair Trading (OFT) has pored over more than 4,000 grumbles that reveal letting agents often add charges after tenancy agreements and contracts are signed off.
General poor service is also a cause for concern for many, says the OFT.
Cavendish Elithorn, senior director at the OFT, said the findings demonstrate that landlords and tenants are often dissatisfied with lettings and management agents, although most agents want to do the right thing.
He pointed out that tenants must request key information, but said the government, industry and enforcers need to work together. By doing this they can have a real impact and improve standards in the lettings market, he added.
The report gives several recommendations including:
• Increasing compliance with legislation and being more upfront with information. In particular, the OFT says fees should be made clear.
• A general redress process so that problems can be sorted out.
• More consistency across the industry with common principles applied across the board.
• A national strategy agreed between government, industry, enforcers and consumer bodies.
• An enforcement strategy for those who do not uphold their legal obligations.
• Initiatives such as recognised logos to help landlords and tenants assess quality.
• The development of joint educational material to help landlords and tenants understand their rights.
Ian Potter, of the Association of Residential Lettings Agents, explained unscrupulous landlords and agents have room to take advantage of tenants as lettings sector expands at the expense of home ownership for many.
“This is driving down the reputation and standards of the industry,” he said.
“We have long-called for a central system of regulation, and would agree with a number of the OFT’s recommendations to help improve the market.”
