
A call by the OFT to drive up standards among lettings agents has been welcomed by the National Landlords' Association.
A call by the OFT to drive up standards among lettings agents has been welcomed by the National Landlords' Association.
Proposals by the Office of Fair Trading (OFT) to improve the property rentals market have been welcomed by landlords.
Confidence in the private-rented sector, both from a consumer's and a property investment point of view, would be boosted by improved conformity to legislation, according to the National Landlords' Association (NLA).
In order to create a successful approach, the Government needs to work together with industry and professional bodies in the residential property market, the NLA believes.
The property investors' organisation was making its comments after the OFT published a report, which called for greater clarity in the terms of tenancies and issued several recommendations to the Government.
In particular the report suggests that tenants need to be given high-quality up-front information, including a clear table of charges.
The NLA has given its backing to this call, saying that such a move can only benefit tenants and landlords who use a lettings agent.
It also said it would be "invaluable" to have a dispute service for resolving problems when they do arise, so that everyone is treated fairly in reaching a resolution.
It also made the call for greater consistency across the rentals industry, so that agents adhere to common principles in areas such as carrying out pre-tenancy checks.
The NLA has described it as "essential" that an enforcement strategy is in place to deal with firms that do not conform to the agreed standards.
On the subject of maintaining high standards, the NLA is of the view that education is the key factor and it is calling for a letting agent accreditation programme along similar lines to its own accreditation scheme for landlords.
"Membership of professional bodies also offers reassurance and increases standards to existing and potential customers that they are able to pass particular quality assessments," the NLA said.
A number of events are now set to be hosted by the OFT, which firms from the lettings industry will be invited to attend, with the aim of discussing its proposals and taking the next steps.
Cavendish Elithorn, senior director of goods and consumer at the OFT, said the report found dissatisfaction with agents among consumers but "we also know that most agents want to do the right thing".
He stressed the OFT wants to take a collaborative approach in improving the market for consumers and agents: "We are keen to play our part in bringing together those involved in the lettings industry to focus efforts where they are most needed."
Commenting on the situation, Zoe Rose, Head of Lettings at Strutt & Parker, said: “I believe that any professional agent would welcome regulations in the industry but I am concerned that too many parties are jumping on the bandwagon. What the lettings industry needs is a simplistic and uncomplicated set of regulations that enhances tenants' and landlords' lives. In my mind, we currently have systems in place with ARLA that are working really well and we don’t want to get to a position where us agents are so tied up that we can’t do business effectively.”