27th
Mar 2013
With just five votes clinching the go-ahead, the amendment of letting agents to be regulated under the scope of the Estate Agents Act, got passed in the House of Lords. Those who supported Baroness Hayter’s proposal numbered 211 and those against were 206.
There are major concerns for all parties as the voting was seen to be along party lines and whether this same outcome can be achieved for the amendment, in a House of Commons vote.
Currently the Office of Fair Trading does not recognise letting agents as estate agents, however this could all change if the new amendment manages to squeeze through a House of Common’s vote. The chances of this happening are low and if it is agreed then letting agents will have to become involved with an ombudsman scheme and could still be banned by the Office of Fair Trading.
If this does finally get passed then it will also prevent estate agents who had previously been banned from being unable to open up the next day as letting agents.
As the government made it clear that they were in opposition to the amendment, Baroness Hayter followed the correct procedure by withdrawing it the first time. However only last week the Government still maintained their dissent.
Viscount Younger of Leckie, parliamentary under-secretary at the Department for Business, Innovation and Skills (BIS), said on behalf of the government that expanding the supply of rented homes was “…….at the heart of the Government’s strategy. We want a bigger and better private rented sector.”
He stated categorically that if more rented homes were made available, it was vital that it did not encourage excessive regulatory procedures.
“Excessive regulation, however well intentioned, can result in precisely the outcomes we want to avoid,” he said. “That is why we did not proceed with the proposals of the previous Government, such as a national register of landlords and the full statutory regulation of letting agents.”
He went on: “We have heard a number of people express the view that the lettings market is totally unregulated. That is not in fact the case.” He drew attention to legislation such as the Unfair Trading Regulations, and Unfair Terms in Consumer Contracts Regulations.
He added: “We know that trading standards bodies use these powers to prosecute lettings agents. Some very substantial fines, and indeed prison sentences, have been handed down to agents who engage in serious misdemeanours, such as misrepresenting their membership of professional bodies, or indeed misappropriating clients’ money.”
He also said that his backing was for “making better use of existing regulations before we create new ones”.
Baroness Hayter, in finishing the debate, highlighted the fact that current Housing Minister Mark Prisk wanted regulation of letting agents back in 2007.
Property Ombudsman Christopher Hamer said: “This will mean greater protection for a number of consumers.”
Although many of the lobbyists claimed that actions taken so far was a victory, it remains to be seen as the usual wheeling-dealing will be held behind closed doors in The Commons. The Conservatives are against further regulation whilst the Lib Dems are pro.
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