Letting agents face £30,000 fines in new clampdown

Letting agents have been told to expect fines of up to £30,000 if they break the law.

The trading standards and private sector housing teams at Stoke-on-Trent City Council are checking that letting agents in the city are complying with standards, as part of a West Midlands-wide project.

The council says that it has received a number of complaints about letting agents and landlords, relating to issues such as illegal charges and unprotected tenancy deposits, while some agents have reportedly failed to sign up to redress scheme membership, which is mandatory.

As you will undoubtedly know, all letting agents and management firms that handle clients’ money must be part of a government-approved Protection (CMP) scheme, which means tenants’ rent and deposits are protected if the business fails. Failure to be part of such as scheme can leave customers exposed to financial risk.

The council also is also reminding agents that aside from being part of a CMP scheme, letting agents are also required to clearly display the name and logo of the CMP provider and a viewable certificate, along with landlord and tenant fees and charges.

During the crackdown the council provide local letting agents with advice and support to ensure they are aware of these rules. But they will also be warned they failure to comply could result in a fine of up to £30,000.

Cllr Carl Edwards, cabinet member for housing and environment at the city council, commented: “One of our key priorities as a city council is to make our towns and communities great places to live. We want to be Stronger Together Through Winter and this will help by improving housing conditions and the practices of letting agents who rent out properties in the city.

“Although we know that most letting agents want to comply with the law, some are making illegal charges or not registering with the schemes. We need to identify and tackle these rogue practices to protect our residents and legitimate businesses.”

 

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One Comment

  1. Woodentop

    It never ceases to amaze me how many landlords do not now or understand their legal requirements. Why is this and its being going on for decades? When I speak to so many landlords, they say the communication of what is or is not allowed is not common knowledge or readily available. The councils say, that’s the responsibility of the landlord to research (so no help there) and while there are rogues who do know, many are not rouges.

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