Code of practice for letting and managing agents
The government announced its intention to regulate letting agents in October 2017, and this was followed by a 6-week call for evidence.
On 1 April 2018, in response to the call for evidence, the government announced proposals to introduce stronger protections against rogue letting and managing agents. This is intended to combat unexpected costs, deliberately vague bills or poor quality repairs.
Under a new mandatory code of practice, letting and managing agents will be required to obtain a nationally-recognised qualification to practice, with at least one person in every organisation required to have a higher qualification.
The new code will be developed by a working group of representatives from letting, managing and estate agents, tenants and regulation experts, with final proposals expected to be drawn up in early 2019.
A new independent regulator, responsible for the working practices of agents, will be given enforcement powers, and agents who fail to comply will not be permitted to trade. Criminal sanctions could be brought for severe breaches of the code.
Other proposals to be brought in under the code include:
- A new system to help leaseholders challenge unfair fees including service charges.
- Support for leaseholders to switch their managing agents where they perform poorly or break the terms of their contract.
- A requirement for all letting and managing agents to undertake continuing professional development and training.
The working group will also look into unfair additional charges for freehold and leaseholders and whether they should be capped or banned. This includes the use of restrictive covenants, leasehold restrictions and administration charges.
Housing Minister Heather Wheeler said; “By introducing new standards for the sector, we will clamp down on the small minority of agents who abuse the system so we can better protect tenants and leaseholders who find themselves at the end of a raw deal.”
On 6 April 2018, a new national database went live, enabling councils to share information between themselves and monitor landlords with a poor track record. The database will include landlords convicted of a range of housing, immigration and other criminal offences such as leasing overcrowded properties, fire and gas safety offences and unlawful eviction.
The database will be capable of being used by the government to publish updates on the number of banned landlords and agents, those convicted of a banning order offence, or recipients of two or more civil penalties. This will be broken down by local authority area.
(Ref. https://www.gov.uk/government/news/new-boost-to-rogue-landlord-crackdown)
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
How can digital twins boost profitability within construction?
A brief description of a smart construction dashboard, collecting as-built data, as a s site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure bill oulined
With reactions from IHBC and others on its potential impacts.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.