Member Article

Rental regulator “still has questions to answer” over agency’s £750,000 collapse

A leading North East lettings agent believes rental regulator ARLA still has “serious questions to answer” after the £750,000 collapse of an agency it had vetted – and has challenged the Watchdog’s boss to a public debate on whether or not it’s procedures are up to scratch.

Charterhouse Professional Property Services of Brentwood in Essex went into liquidation in May, leaving behind almost 100 creditors owed a combined £750,000.

The company was registered with lettings watchdog ARLA, leading to Ajay Jagota, founder of North East lettings agency KIS Lettings to publically ask the regulator why their checks and balances “failed so miserably on this question” and to pose the question “what use is a Watchdog that doesn’t bark?”

ARLA stated that it would attempt to recover any money owed to Charterhouse’s creditors.

Repeated attempts by KIS over the following months to find out exactly how much of the money has been recovered have been rebuffed by ARLA due to “legal complexities”.

In response to questions relating to how exactly ARLA had vetted Charterhouse and whether or not it was planning to change its procedures in light of the case – KIS was told that the regulator is “not commenting at this time”.

Ajay Jagota, who manages properties for 700 landlords from branches in South Shields, Sunderland, North Shields and Welwyn Garden City believes ARLA’s credibility depends on being more transparent.

He said: “ARLA have told us they are unable to answer our questions at this time because of ‘legal complexities’ and we are prepared to give them the benefit of the doubt – for now.

“This doesn’t change the fact that they still have serious questions to answer in the future – and I will not stop asking until I get an answer.

“Landlords and tenants put their trust in ARLA and it is in their interests as much as anyone else’s to demonstrate that their methods are rigorous, robust and most importantly of all, actually work.

“When we asked general questions about what a typical ARLA audit involved we were told to go and look at their website – I think ARLA needs to explain what it actually does much better so I’m giving eIan Potter the opportunity to do just that.

“So Ian, you name the time, you name the place and we can talk this through in public. People have a right to expect honesty and openness from the lettings industry, so let’s give it to them.”

This was posted in Bdaily's Members' News section by Ajay Jagota .