The Government has unveiled new plans to protect some 9 million leasehold homeowners and renters from ‘unscrupulous’ letting and managing agents, amid concerns that thousands of Britons are suffering at the hands of so-called ‘rogue’ agents.
In recent days, the Government has suggested that an independent regulator should be set up in order to monitor the sector – and that a mandatory ‘code of practice’ should be introduced that all agents must abide by.
Under the proposals, letting and managing agents would be required to obtain a nationally-recognised qualification before they are permitted to operate, while at least one person within the organisation would need to pursue a ‘higher qualification’.
The Government has said that the proposed changes, which come in a bid to prevent agents from hitting renters and leasehold homeowners with unexpected costs and vague bills, would help to “professionalise both sectors,” as managing and letting agents who fall foul of the new rules would no longer be permitted to trade.
Worse still, criminal sanctions could be brought in for agents that severely breach the code, it has been said.
Commenting on the proposed changes, Heather Wheeler, Minister for Housing, acknowledged that the majority of property agents in the UK “take a thorough and professional approach when carrying out their business.”
However, she said that more needed to be done to “clamp down on the small minority of agents who abuse the system.”
She added that the Government was very keen to “better protect tenants and leaseholders who find themselves at the end of a raw deal.”
The full proposals can be accessed here.