Professionals or pretenders

Did you know that around 60% of letting agents remain unregulated?

So, what does this mean to both landlords and tenants?

The residential lettings industry has and continues to experience extensive changes as the Government introduces new or amends existing legislation, which in some way or another affects both landlords and tenants.

Furthermore, from a landlord's perspective, HMRC have recently revised their rules when assessing the tax liabilities of people who own investment properties. Often, changes are introduced at short notice, and there is limited media coverage outside of the industry itself, meaning that consumers are often completely unaware of what has changed and how it will affect them personally.

Propertymark is the recognised professional body which regulates the lettings industry, but unfortunately, they have limited input in terms of any proposed changes being considered by the government or HMRC. This is disappointing as they represent those agents who voluntarily opt to adhere to a strict code of professional conduct and are therefore classified as 'regulated agents

Notwithstanding this Propertymark is generally first to be updated once any new rules or regulations are to be implemented plus changes to the current process. In turn, their member agents will be informed, and they should be updating their landlords and tenants accordingly.

Unfortunately, so many agents opt not to be regulated and, therefore, are often not as up to date as they should be. This results in their customers failing to receive appropriate advice, leaving them exposed both legally and financially. In fact, it is estimated that more than 60% of all letting agents in the UK remain unregulated.

Using a regulated agent approved by Propertymark offers many benefits. As well as receiving reliable and up to date advice, any rent or deposit monies received and processed by the agent on behalf of landlords and tenants is automatically protected. It is a little like the role of ABTA within the travel industry. People should always remain mindful that unregulated agents offer no such guarantees, so whether you are a landlord or tenant, before commencing your journey with an agent, always ascertain if they are fully regulated.