House of Lords Calls for Urgent Regulation of Estate and Letting Agents

Four years have elapsed since the government first promised to appoint a dedicated regulator, an idea born from a working group focused on this matter.

The Committee’s chair, Baroness Taylor, highlighted that there was overwhelming support for statutory regulation during their inquiry, coming from consumers, professionals, and industry authorities alike.

She criticized the government for its inactivity since the working group presented its findings and pointed out that tenants, leaseholders, and the property sector as a whole are suffering from the lack of regulation.

Baroness Taylor also mentioned her disappointment over the absence of a departmental minister to provide oral testimony during the inquiry.

The committee’s evaluations, which were informed by testimonies from leaseholder and tenant advocates, property agent associations, The Property Ombudsman, the Leasehold Advisory Service, and National Trading Standards, concluded that:

• a dedicated regulator could effectively enhance industry standards and take proactive measures against unethical agents;
• existing enforcement and remedial methods are too passive and their reach is too narrow;
• the proposed Leasehold and Freehold Reform Bill falls short in addressing the problems leaseholders encounter and it should be paired with comprehensive regulation.

Consequently, the committee is calling for several measures:

• The formation of a new regulatory body through legislation, or at the very least, a full official reply to the working group’s report suggesting one;
• mandatory ethical training and qualifications for all property agents;
• implementation of industry standard practices overseen by the new regulator to ensure customer satisfaction;
• an agreement outlining cooperation between the new regulator, National Trading Standards, and redress schemes to prevent overlapping responsibilities;
• legislation guaranteeing that consumers have a strong voice in the sector;
• the establishment of a single ombudsman service for property agents, rather than the currently competing options;
• the new regulator to become financially independent over time, funding itself through fees, charges or levies imposed on the entities it oversees.

You can read the full letter here.