Housing Minister Heather Wheeler has announced that a new working group is to be set up and tasked with raising standards across the whole of the housing sector.
The working group will be headed up by Lord Best, supported by professional bodies including ARLA Propertymark and consumer groups such as Citizens Advice. They will look at ways to improve standards for homebuyers, sellers, tenants, landlords and leaseholders. It is expected to report back next Spring. At present anyone can operate as a property agent, although lettings professionals can set themselves apart by joining a membership organisation. In doing so, they agree to abide by a Code of Practice and provide greater protection for tenants and landlords, including Client Money Protection and belonging to a redress scheme. The Regulating Property Agents Working Group is to consider the case for a fully regulated industry, including mandatory qualifications for all property agents and will work towards a new framework which will be consistent across letting agents, managing agents and estate agents. Full regulation would make it easier for the public to understand the level of professionalism and protection offered by those working in the housing sector. This should increase confidence among consumers and give a boost to the industry’s reputation, making it similar to the legal or accounting professions. ARLA Propertymark and NAEA Propertymark have been lobbying the Government for a fully regulated industry and were influential in persuading the Government to take action. The working group will look at the following issues:
- a model for an independent property-agent regulator, including how it will operate and how it will enforce compliance;
- a single, mandatory and legally-enforceable Code of Practice for letting and managing agents, and whether similar could be provided for estate agents;
- a system of minimum entry requirements and continuing professional development for letting, managing and estate agents;
- a standardised approach for presenting transparent service charges to leaseholders and freeholders;
- an easier statutory-backed process for consumers to challenge unfair service charges;
- whether other fees and charges which affect both leaseholders and freeholders are justified; should be capped or banned; and
- further measures to professionalise estate agency.
Mark Hayward, Chief Executive of NAEA Propertymark said: “We have been working closely with Government since the announcement of the Regulating Property Agents Working Group. We are pleased this has been now set up and look forward to progressing this in the interests of all parties.”
By Patrick Mooney, editor