Agents have been urged to “stop complaining in chatrooms” as ARLA Propertymark warns they have just 12 months to prove they can be transparent on referral fees or face yet another ban.
Speaking at yesterday’s ARLA Propertymark conference, chief executive David Cox highlighted the wave of changes hitting the sector, such as licensing, minimum energy standards, anti-money laundering rules and the impending tenant fees ban – and warned that referral fees could be next if firms aren’t careful.
It comes after the National Trading Standards Estate Agency Team last month launched guidance on disclosing referral fees and said it would report back to the Government on progress in 12 months.
Cox said: “In 2017 I said there was a tsunami on the horizon, and that tsunami is now upon us.
“If you don’t want referral fees to go the same way as tenant charges, then the industry has less than a year to show how they can be transparent.”
He warned that none of regulatory changes so far have helped tenants or driven out rogues, but instead just drive up costs for agents.
Cox issued a rallying cry for members to act as case studies to show how their business operates and the impact of regulatory and legislative changes, to ensure the sector is not demonised by the press.
He said: “Complaining in chatrooms behind closed doors won’t get your voice heard.
“We need help to combat the swathes of new laws to bring to life what it is like to work in lettings.”
The conference also discussed the idea of property MOTs that outline minimum standards for a home to replace selective licensing.
Julie Rugg, senior research fellow at the University of York’s Centre for Housing Policy, said discussion was needed on what a property MOT would include but said that it could be universal for all landlords and letting agents and involve a central register.
Cox backed the idea, adding that council inspectors are rarely qualified in property standards for licensing, and said getting a certificate approved and checked would be cheaper for local authorities.
Comments (7)
ARLA/NAEA under the Propertymark banner is now more of a consumer facing organisation and not really one that represents members.
Sad that these two once-valuable trade bodies – that genuinely worked democratically and in the primary interest of their members – have so devalued themselves.
Ban Referral fees for agents? Just estate and letting agents? or for all industries and agents?
How about all referral fees for all industries – can you imagine the wave and ripple effect of that – ha a tsunami would have nothing on that. That would be like a meteorite from the far side of the galaxy hitting the earth with the same impact and effect. Whats good for one industry must be applicable to all ? Shirley.
Shall we see fees being banned in Financial Services sector? Answer on a postage stamp!
This government is out of control and certainly out of step with reality and it is more than clear that they are hell bent on decimating the lettings industry …. base on hypocrisy, total lack of understanding, prejudice and cowering to the looney left. Stakeholders support is narrow minded and self indulgence?
I’ve cancelled my ARLA membership, they’ve sold us down the river years ago. They’ve agreed with the government all along, they should have fought for a cap on admin fees. They won’t get a penny out of me, there’s other training organisations out there also that we are using to keep on top of new regulations
The only thing I have ever heard Cox say that was right ..
“He warned that none of regulatory changes so far have helped tenants or driven out rogues, but instead just drive up costs for agents”.
This is firmly at the front door of ARLA who the government consider are an important stakeholder, rather than the odd letting agent or two. The trouble is COX always seems to be in agreement with Government policy and that ladies and gentleman you can reach your own conclusions on!
Maybe ARLA should stop trying to run with both the foxes and the hounds and decide that it’s either there to stick up for their members or there to help pummel them into submission. Rather than act as an advocate for the industry professionals they seem hell bent on government enforcing more punitive measures to subdue the industry. Sad times delivering zero value to their membership.
David Cox needs to look at his own organisation before criticising other. What have ARLA done for their members….ever? What did ARLA do when Shelter were berating the Gov for a fee ban….absolutely nothing that is what.
Transparency is not the issue here, the issue is that some prominent people dont like referral fees and they will bang the drum until the government bow down. I dont give a damn if referral fees stay or not, but to state that agents are in charge of the future is complete rubbish.