safeagent has called for stronger and more joined-up enforcement of lettings legislation following reports that an agent has been accused of failing to return deposits belonging to more than 100 tenants.
The not-for-profit accreditation scheme says the case highlights concerns that stretched resources and uncertainty over responsibility between enforcement bodies can leave tenants exposed when agents fail to comply with their legal obligations.
safeagent acknowledges the pressures facing Trading Standards teams and says many local authorities successfully pursue cases involving failures such as agents operating without membership of a Client Money Protection (CMP) or redress scheme.
However, it warns that a lack of resources and coordination can mean warning signs are missed.
‘CONSUMERS PLACED AT RISK’
Isobel Thomson (main picture), Chief Executive of safeagent, says: “As an organisation, we have experienced instances of authorities pitching responsibility from one to the other, as appears to have happened in this case, where issues are raised regarding letting agent compliance. The end result is that no action is taken and consumers are placed at risk.”
The organisation argues that reports of unprotected deposits should potentially trigger wider checks into an agency’s compliance, including whether it belongs to a mandatory CMP scheme and an approved redress scheme.
It also questions whether multiple complaints about the same business should lead to cases being escalated to the National Trading Standards Letting Agency Team.
RESOURCES UNDER PRESSURE
safeagent says it has previously reported agents improperly displaying its logo but has encountered authorities unable or unwilling to investigate.
Thomson says: “We have experienced authorities failing to respond to repeated communications about agents displaying the safeagent logo, for example, as they cannot see the bigger picture of what that means for consumers i.e. that the firm is not part of a CMP Scheme or very likely a redress scheme either. It is not a vanity project about the use of our logo but a genuine aim of ensuring consumers are protected.”
safeagent cited one Trading Standards authority which told it significant budget cuts had reduced its enforcement capacity, forcing it to prioritise cases according to factors including consumer vulnerability, complaint numbers and financial detriment.
The organisation is now calling on the Government to ensure responsibilities are clearly understood across enforcement bodies and to develop a more joined-up approach to tackling non-compliance in the lettings sector.
