The impact of a change in the law on 1 October has meant that some letting agents are failing to register with one of three approved Ombudsman schemes, as required under the law.
Since 1 October, not registering a housing letting agency with an Ombudsman scheme has become a criminal offence.
Research by the Property Redress Scheme has found that registration paperwork had not been submitted by 900 London letting agencies by 26 September.
Property Ombudsman Christopher Hamer said that letting agencies did not have a period of grace after 1 October for registering their businesses.
“Anyone trading without registering after this week’s new legislation comes into force will be committing a criminal offence,” said Mr Hamer last week.
However, he warned that any agencies which fail to register will most likely be caught out by the changes in legislation.
“…If a consumer contacts my office about a dispute, I would need to find out if the agent is registered – and I would be obliged to notify the authorities to investigate if they are not,” he added.
More regulation has been introduced to protect consumers against rogue letting agents – who may charge high fees for finding a property for a tenant.
Some rental tenants have also been the victims of fraud, after paying a fee for a letting agency to find them a property, only for the fee and the agency to disappear – or for properties to be marketed to multiple tenants all paying a fee.
Letting agencies can also charge up to £1,000 just for finding a rental tenant a suitable property.
Duncan Lewis Housing Solicitors
Duncan Lewis is a leading firm of specialist housing solicitors – and can advise rental tenants on a wide range of housing matters, including:
• Disrepair of rental property
• Housing Benefit
• Housing possession
• Landlord & Tenant disputes
• Local Authority housing
• Unlawful eviction.
For expert legal advice on rental property, call Duncan Lewis housing solicitors on 020 7923 4020.