Call for letting agents regulation

Nov 22 2012

Further regulation of letting agents is needed to make the private rented sector a more reliable option, according to chartered surveyors.

Tenants looking to rent a property can only be charged for rent and a deposit, legislation which was clarified by the Scottish Government earlier this year.

However, some potential tenants are still charged additional costs, including administration fees, inventory fees and credit checks, the Royal Institution of Chartered Surveyors (RICS) Scotland said.

Now, it is calling for more regulation in the private rented sector to provide greater security as the rental market continues to grow.

It said there are more than 500 letting agents throughout the country, many of which are unregulated.

RICS Scotland director Sarah Speirs said: "The private rented sector is growing in Scotland as people struggle to buy property and it is imperative that we regulate the sector to provide long-term security.

"The Scottish Government has taken welcome action introducing mandatory tenancy deposit schemes to protect individual's deposits, however, despite the significant regulation in place for landlords, there is a gap in regulation for letting agents.

"At present, lettings agents are not required to abide by a government, ombudsman or regulatory body code of practice - demonstrating a lack of legal responsibility. Until this happens, we recommend that tenants use a lettings agent that is a member of a professional organisation, such as RICS."

John Gell, director of Simply Let, said: "You probably don't need an agent when all is going well but when things go wrong with the tenancy you certainly do.

"That is when an agent regulated by RICS and with expertise in landlord and tenant law will fully protect your interests. Agents regulated by RICS must be competent and qualified, act with integrity and carry professional indemnity ensuring your interests are fully safeguarded."