Letting agents in a London borough have been publicly warned this week that they must sign up to a redress scheme after a local firm was fined £5,000.
Islington Council has also put agents on notice that they must observe the law in displaying fees.
This week, the authority is writing to all local letting agents to remind them that any failure will result in a penalty of up to £5,000.
In what may have been one of the first actions of its kind, Islington Council this month fined APS Estates for its failure to join one of the three redress schemes.
Before the new rules came in last October, Islington Council’s trading standards team and the Property Ombudsman wrote to letting agents in the borough advising them to sign up to a scheme or risk a fine.
Almost all of Islington’s 150 letting agents signed up, but APS Estates did not. Trading standards followed up the letter with a visit and further reminders.
In December, Islington’s trading standards team issued a notice saying they intended to impose a fine of £5,000 for failing to sign up.
APS Estates appealed the decision, but this month an independent tribunal found in favour of Islington Council and agreed that the fine should remain at £5,000. APS Estates has now joined TPO.
Cllr James Murray, Islington Council’s executive member for housing and development, said: “More and more people in Islington rent privately, and we want to make sure they are treated well and not ripped off.
“The vast majority of local lettings agents signed up to a redress scheme in good time, but we took action against the small number that did not. It’s important that tenants and landlords can get independent adjudication if they have a complaint.
“It’s also important that letting agents follow the rules about displaying fees. We’ll be encouraging them to do so now, so that they avoid the possibility of a fine.”
Richard Tacagni, managing director of consultancy firm London Property Licensing, said: “It is great to see Islington Council taking such proactive action to enforce these new regulations, thereby helping to safeguard both landlords and tenants.
“Unlike a Magistrates’ Court fine, this £5,000 civil penalty is paid to the council and can be reinvested to fund further enforcement activity.”
Very good to see a local Council using existing powers to raise standards. Hope to see many more follow this lead…..
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The trouble is, that many private landlords with many rentals come under same status under CPR’s as letting agents. Ie the lines were removed in professional conduct whether its an agent in the wrong OR a professional landlord.
‘Letting Agents’ I agree should register for redress (tis the law 🙂 but many private landlords will still go under the radar for a long time yet.
With private sellers and private landlords now able to easily advertise behind the logo’s of budget operatives on main portals. Its going to be hard to bring such operatives into consumer redress the simple title of ‘letting agent’ brings.
Consumers and good agents should have assurance knowing that ‘private’ landlords are easier to monitor and take out if rogues.
Redress still has a LONG way to go, and should be based on actions not title. CPR’s set out to do this by classing ANY operative as a sales or lettings operative. But its a tough one to monitor.
Maybe the council should be writing to ALL licenced landlords as well, not JUST ‘letting agents’
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Here is the latest quote from Wales trading standards …..
“The Consumer Rights Act 2015 although a recognised UK statute is not yet fully in force. Section 83 of Chapter 3 of Part 3 (specifically relating to letting fees) cannot be enforced until such time as the Welsh Ministers may appoint by order made by statutory instrument. I am not aware of any commencement order being made in Wales. I can say that in England this Order has been made and is in force from 27 May 2015”.
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