William Eichler 02 June 2017

Enforcement regime on displaying agent fees ‘failing’, survey reveals

The enforcement regime on displaying agent fees is ‘failing’, says licensing group as survey reveals the majority of councils are not issuing penalties for non-compliance.

In 2015, it was made law for agents to display their fees. However, a survey of 42 local authorities by the National Approved Letting Scheme (NALS) found 93% had failed to issue a single financial penalty to letting agents for non-compliance.

The survey, based on Freedom of Information requests, revealed only three penalty notices have been served for failure to display all relevant landlord and tenant fees, and of these, only one has been paid in full.

NALS concluded the the lack of notices served by councils raises ‘clear concerns’ that the level of penalty may not be right to cover the cost of enforcement. Currently, the maximum penalty is £5,000.

The Government has said the private rented sector is a high priority. However, this does not appear to be the case for councils where most (59%) admitted they do not consider the display of letting agent fees represents a high priority for the allocation of resources within Trading Standards.

Almost half of local authorities (45%) said they only undertake reactive enforcement activity. A third (33%) allocated no staffing resources to this work in 2016/17, while 62% of councils anticipate no changes in the level of staffing resources in 2017/18.

Nearly two thirds of local authorities (64%) also revealed they haven’t yet assessed the likely impact on enforcement when the Government introduces a ban on letting fees to tenants.

‘We’re clearly concerned by these results and the disconnect between Government’s aspirations with consumer protection legislation and the reality of delivery through enforcement,’ said Isobel Thomson, chief executive of NALS.

‘We recognise trading standards teams are underfunded and under-resourced, but if local authorities aren’t enforcing the current legislation what will make things different when the fee ban is implemented?

‘Without sufficient robust and coherent enforcement action, we will never stop the criminal element in the PRS. They will continue to operate knowing they won’t face any penalty and it’s the consumer who will continue to suffer.

‘We believe now is the time to start a constructive dialogue with the Chartered Trading Standards Institute and its members on how we can work together to stamp out the rogues.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Chief Executive & Head of Paid Service

Hull and East Yorkshire Combined Authority
£150,000 - £170,000
Chief Executive & Head of Paid Service Hull
Recuriter: Hull and East Yorkshire Combined Authority

Chief Legal Officer

Sandwell Metropolitan Borough Council
£101,275 - £117,266
We are now seeking an exceptional legal leader to join us as Chief Legal Officer. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Major Events Manager

Powys County Council
£49817 - £51928
This is an exciting opportunity to lead Powys County Council's preparations for three major events in 2027 Llandrindod Wells, Powys
Recuriter: Powys County Council

Debtors and Collection Officers

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
This is an exciting opportunity to join a dynamic and ever-changing revenues environment. You’ll have the chance to develop your skills, gain valuable Spennymoor
Recuriter: Durham County Council
Linkedin Banner