Agents may find it tougher to join ombudsman and deposit schemes
Summary
The government is considering tighter verification requirements for letting agents seeking membership of redress and tenancy deposit protection schemes. The move follows concerns about fraudulent operators misusing legitimate schemes and comes alongside a wider review of regulation in the property agent sector.
Why it matters
Surveyors involved in rental property, compliance checks or due diligence should note the potential for stricter admission criteria and enhanced verification processes. Any changes could affect agent legitimacy checks, tenant deposit handling and the broader regulatory environment for residential lettings.
Key points
- Government is working with National Trading Standards on tougher criteria for scheme membership.
- Current approved redress schemes include The Property Ombudsman and Property Redress – The PRS.
- Tenancy deposits for assured periodic tenancies must be protected in a government-approved scheme.
- Officials are reviewing fraud safeguards, due diligence checks and tenant communications.
- Further regulation of the property agent sector is being explored.
Organisations:
National Trading Standards, The Property Ombudsman, Property Redress – The PRS, Department for Housing, Communities and Local Government
Regulations:
tenancy deposit protection scheme, property redress scheme, assured periodic tenancy
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