Consumer protection suffers as private rentals grow

In a statement that responds to the Government’s consultation on the private rented sector, the Association of Residential Letting Agents (ARLA) has argued that it is vitally important that the Government is committed to ousting the rogue landlords and agents from the industry

As the economic downturn has left many struggling financially and made securing a mortgage to buy a property tougher, the private rented sector has grown by 17% between 2007 and 2008 and continues to expand.

Ian Potter, operations manager of ARLA comments:

“The current depressed sales market has highlighted the ease of entry into the lettings sector. Sales agents have been turning to lettings as an alternative form of income despite having no relevant qualifications or experience in what is a highly specialist area. There are real dangers that landlords and tenants could fall foul of rogue operators – this is unacceptable in terms of consumer protection.”

“The private rented sector is a vital part of the choice of tenure required in a mixed economy and the private rented sector has done much to improve standards of housing stock.”

“We estimate that around half of letting agents still do not belong to a professional body. This poses a risk to new landlords as well as tenants. Regulation of residential sales, lettings, and management agents are inextricably linked and should be brought together to provide a firm professional basis for this sector.”

“ARLA’s main concern is with the Government’s lack of assertion surrounding professional qualifications for agents. It runs contrary to the flavour of the original report to fall down on this particular point. It is a widely held industry view that qualifications are key to the professionalisation of the sector and a necessary step in restoring faith of the consumers.”