News
Letting agents 'to face more regulation in the Spring'
Wednesday 20th December 2023
Announcement is made by CMA, which says new guidance and also enforcement are in the pipeline as the regulatory looks into the PRS.
Letting agents face more regulations following a promise by the Competition and Markets Authority (CMA) to produce guidance for the sector in April next year.
The Government body, which oversees fair practice within the business world including sales and letting agencies, says new guidance for those working in the private rented sector (PRS) is in the pipeline.
The CMA's probe was launched in August and since then it has been talking to all the players within the PRS to "understand better the consumer protection issues that may be facing people when they rent a property", it says.
"We heard numerous concerns about the sector, as well as some positive developments. It is a complex regulatory area spanning several different areas of government policy such as energy, tax and housing standards."
But new guidance for agents is not its only aim. The CMA says it is looking at several areas of concern and whether 'enforcement action' or in other words, fines, will be appropriate.
These areas of concern include no-deposit schemes, sham licences where landlords and agents attempt to rent out homes via unfair tenancy agreements; guarantee agreements that ask tenants to jump through significant referencing hoops and the continuing use of 'No DSS' and other discriminatory phrases in property ads.
Justifying its work within the housing sector, the CMA said in its original report: "The functioning of the housing market has a significant impact on the finances and living conditions of almost every person in the UK. "This impact is particularly significant at a time when the price of other essentials, such as energy, food and other groceries, and road fuel has increased."