Why the authorities are toothless

5 April 2012
The Weekender

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As Londoners are being robbed of millions of pounds by rogue letting agents, the authorities are busy passing the buck.

Stephen Byers's department, which is responsible for housing and local government, claims it is "committed to promoting a healthy private rented sector" and that "a crucial element of this approach is the services provided by letting agents". But while acknowledging the poor reputation of some such agents, it insists that Trading Standards officers have all the powers they need to deal with rogue agents and that legislating to regulate them is "not a priority". Trading Standards staff say they have neither the powers nor the resources to do so.

The Office of Fair Trading, which has the power to ban estate agents, cannot touch dishonest letting agents because the 1979 Estate Agents Act does not mention lettings.

The Department of Trade is also unwilling to legislate, but it has launched a website for disgruntled customers to warn others: www.ripofftipoff.net. This, however, this will neither get them their money back nor punish offenders. There are around 3,400 lettings agents who are members of professional bodies and up to 8,000 who are unregulated. The only way to avoid rogues is to use those who are members of the National Approved Letting Scheme (NALS) which has a dispute resolution procedure. Only 350 firms have so far joined NALS but as it does not look like the authorities intend to clamp down on letting abuses, consumers must protect themselves.

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