Shockingly low levels of compliance with the law found among letting agents

An extraordinarily high level of non-compliance among letting agents across London has been revealed by Trading Standards.

Nearly half – 46% – of 1,922 agents inspected over a 15-month period were non-compliant with the Consumer Rights Act and/or the legislation on redress scheme membership.

In the 15 months to June, London letting agents were fined over £1.2m for breaking the law – either because they were not displaying fees, and/or did not belong to a redress scheme.

A total of 256 fines were issued, with the average being £4,695.

As well as the fines, London boroughs instigated 14 criminal prosecutions.

An enforcement survey showed 6,039 letting agents operating in London, with 1,092 complaints against them.

In the first 12 months covered by the survey there were 855 complaints, and in the final three months there were 237 – suggesting that the rate of complaints is not subsiding.

London Trading Standards operations director Stephen King said: “Dodgy agents are far too commonplace across London and private renters need to be very careful not to be ripped off.”

Since the enforcement survey, the Tenant Fees Act has been implemented, while the requirement to have Client Money Protection and hold client money in a separate account has been in force since April.

London Councils’ executive member for housing and leader of Barking and Dagenham Council, Cllr Darren Rodwell, said: “Boroughs are cracking down on rogue letting agents to protect tenants from unfair treatment.

“As the research shows, this poses a serious challenge in London, where housing pressures are so severe and a significant number of letting agents have been breaking the rules.

“Borough Trading Standards teams are crucial for tackling this issue.

“Through raising awareness, issuing fines and pursuing prosecutions, we’re determined to support tenants and make clear to rogue letting agents that bad practice is unacceptable.”

Leon Livermore, chief executive at the Chartered Trading Standards Institute, said: “The fact that London boroughs had to issue over £1.2m in fines and started 14 criminal prosecutions is truly shocking.

“This kind of enforcement work by trading standards illustrates how big a part the profession is playing in keeping UK consumers safe and holding rogue letting agents to account.”

There are 33 boroughs across London. The figures quoted exclude the London borough of Hillingdon.

Today concludes a special London Trading Standards Week, where the twin focus has been on rogue letting agents and the illegal sale of knives.

Evidence of compliance – or otherwise – is lacking on a nationwide basis, or in cities outside London.

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9 Comments

  1. jeremy1960

    And councils of course never get it wrong. …….

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  2. grantlance

    Stories like this really infuriate me.  I wonder if this rag would ever bother to report the story a little further down in PIE today
    Agency embarks on ‘largest ever’ fundraise to send hospice children to Disneyland
    Of course they won’t because that doesn’t fit the estate agent profile they want to portray.

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  3. MF

    If councils/trading standards weren’t so shockingly slow at enforcing existing laws to deal with the dodgy agents, perhaps we wouldn’t have so many new and onerous regulations coming in to protect tenants from unfair treatment.

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  4. DarrelKwong43

    no surprise, the lack of knowledge and competence is quite shocking

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  5. Mark Walker 2

    The funny / tragic thing is that “they were not displaying fees, and/or did not belong to a redress scheme” are 2 of the easiest things to do.

    If they can’t manage that then what else can you imagine they are not keeping up on?  Quarterly inspections to check the tenant hasn’t trashed the property, kept on top of gas safety inspections so their tenants aren’t killed, keeping up-to-date on changing legislation so they don’t fall foul of a Leeds Five case, jeopardising 3 x deposit and so on…

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    1. Mark Walker 2

      I still maintain that it will be the Lettings side that will be the final nail in certain fly-by-night call centre agents business plans…

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  6. Woodentop

    There was a time when Trading Standards used to visit agents (and other companies) or hold seminars and help them get things right before they went wrong. It was called a service to local business’s, prevention better than the chasing the horse after its bolted and was very effective for business’s and consumers and cost efficient for everyone, including Trading Standards.

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    1. MF

      Yes!!  I well remember as I had one such visit back in the late 1980s.  Very friendly / helpful and put me on the right path over one (small) matter.

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  7. TOZ4

    No surprises here. The industry across london is full of sharks out to line their pockets with no regard for service to landlords or tenants.

    However, in my humble opinion, the number of compliant agents out numbers the rouges, by far.

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