Lettings industry worried over 'influx' of unregulated agents

Tuesday, 17, Mar 2009 03:43

The lettings industry is seeing an influx of unregulated letting agents, according to the Association of Residential Lettings Agents (ARLA).

In a survey of its members, ARLA found over three quarters, 76 per cent, reported estate agents in their local area have moved into lettings as a result of the market in the last six months.

But ARLA believes a high proportion of these agents are not being regulated properly or meeting the required standards for lettings agents.

Ian Potter, operations manager of ARLA, said: "In order to make the transition from an estate agent to a lettings agent, they need to have studied more than a hundred different pieces of legislation, and pass minimum competency tests to ensure their ability to advise clients to the required standards.

"This is a big concern for landlords and consumers. Those consulting an agent need to be absolutely sure they are getting the best advice possible to ensure the safety of their investment."

On average, ARLA members said around four estate agents in their local area had moved into the rental market, with some stating as many as ten agents were now operating in this sector.

Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA) said: "We would always advise consumers to use qualified and regulated agents, because that way they can have confidence in their transaction.

"I can understand why estate agents, or unregulated start up agents, have appeared in the lettings market after a tough year, but they could get themselves and their clients into trouble if they aren't completely aware of the relevant legislation.

"An appropriate licensing scheme across the property industry would put an end to situations such as this, and the worries that accompany them, in a stroke."