Around 3,000 letting agents will be expected to join redress schemes in a move designed to give tenants and leaseholders greater protection.
Housing minister Kris Hopkins today announced that agents would be legally obliged to join The Property Ombudsman, Ombudsman Services Property or The Property Redress Scheme this year.
Other measures outlined by the Government include extra guidance for councils on how to tackle rogue landlords, protect tenants from illegal eviction and push for harsher penalties for housing offences.
Although the majority of letting and property management agents are registered with one of the three redress schemes, some 3,000 are not – 40% of the entire industry.
Hopkins said: ‘All tenants and leaseholders have a right to fair and transparent treatment from their letting agent. Most are happy with the service they receive, but a small minority of agents are ripping people off, and giving the whole industry a bad name.
‘That’s why we will require all agents to belong to one of the official redress schemes. They will ensure tenants have a straightforward route to take action if they get a poor deal, while avoiding excessive red tape that would push up rents and reduce choice for tenants.’