Housing Minister Kris Hopkins has announced plans for it to become mandatory for letting agents to join a redress scheme. The schemes will consider issues of excessive fees and poor service, with failure to comply leading to fines of up to £5,000. If it becomes a legal requirement, what are the effects it could have on landlords and tenants?
• Accountability – The scheme would offer tenants with an independent investigatory body to resolve specific issues, providing them with a more straightforward option to hold their agents to account.
• Reputation – The overall image of the industry would be improved. Efforts to increase transparency and consistency would give landlords and tenants more trust in the system.
• Uniformity – It would standardise the industry by smoothing the regulatory variations in different regions implemented by individual councils.
• Efficiency – An attempt would be made to strike the right balance between regulating the industry but without the excessive red tape which would only drive up rents for the tenant.
Here at Rentify we believe that if letting agents join the redress scheme, the industry will become more transparent, and therefore less capable of overcharging both tenants and landlords.