Member Article

OFT instigates letting market shake up

Poor services and unexpected charges in the property letting market will be tackled after an investigation carried out by the Office of Fair Trading (OFT).

Nearly 4,000 complaints made by renters and letters raised concerns over fees and charges levied by agents that are often a “surprise” or “drip fed” through after contracts have been signed.

OFT published a report saying these issues should be met with better enforcement of legislation and more clarity in tariffs and fees, while a system should be put in place for landlords and tenants to deal with problems when they occur.

The report also recommended that principles should be standardised across the market so practices such as checking tenants’ suitability are consistent within the industry.

Government, industry, enforcers and consumer bodies have been called on to agree terms for a national strategy, as well as an enforcement strategy that will be used for those who don’t comply with the law.

Further to these recommendations, OFT said initiatives should be put in place for landlords and tenants to be able to assess quality more easily, and information should be made more easily available through “quick guides” and other educational literature.

Cavendish Elithorn, senior director of goods and consumer at the OFT commented: “Our findings shows that tenants and landlords are often dissatisfied with their agents but we also know that most agents want to do the right thing.

“It’s important that tenants ask for key information, but we also believe that Government, industry and enforcers working together can have a real impact and improve overall standards in the lettings market.

“This report sets out our view on what improvements could be made to address concerns with this market and we are keen to play our part in bringing together those involved in the lettings industry to focus efforts where they are most needed.”

This was posted in Bdaily's Members' News section by Miranda Dobson .