Propertymark has called for a timetable in which agents will be regulated, after the idea was endorsed in the House of Lords.
Lord Best said: “those who would be regulated are as keen on regulation as those consumers who would be protected by it” – alluding to the fact that a number of agents are keen for the sector to be professionalised.
Meanwhile Baroness Taylor of Stevenage said the Ministry for Housing, Communities, and Local Government intends to implement minimum qualifications for managing agents of leasehold properties and freehold estates via the widely expected Leasehold and Commonhold Reform Bill due to be published in the second half of this year.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark is pleased to see continued acknowledgement from Peers that now is the time to act on the regulation of property agents.
“Although the UK government prefers a phased approach, this lack of a firm timetable is disappointing as the property sector is going through significant change because of the proposals in the Renters’ Rights Bill, legislation impacting leaseholders, changing rules for financial sanctions checks and recent new building and fire safety requirements means there is a desperate need for a coordinate approach to regulation across multi-disciplines of property agency and management to protect consumers.
“These changes are important but without regulating and driving up standards for sales, lettings and managing agents who will implement these rules and work with consumers often at the start of their home buying and renting journey, the UK government not only risks doing half a job when it comes to levelling up the housing market but this could risk thwarting confidence across the industry.
“We will continue to work with Ministers, officials, MPs, Peers and policymakers to ensure that regulation becomes a reality and compliments the proposals contained in the Renters’ Rights Bill and wider housing legislation.”
Lord Best suggested another amendment that proposed a fresh legal requirement for planning permission prior to the switch of a shorthold tenancy to a short-term letting.
Propertymark has called for compulsory registration, improved transparency, and planning restrictions to stop the exponential growth of short-term lettings from impacting housing supply.
The Levelling Up and Regeneration Act includes provisions for greater regulation of short-term lets in England, including licensing schemes and planning controls. Propertymark says these measures must be enacted alongside the Renters’ Rights Bill to level the playing field.
Furthermore, Propertymark stressed before the debate that periodic tenancies with minimal notice periods, as suggested in the Renters’ Rights Bill, could be exploited to create de facto short lets, and that current regulatory and financial pressures could persuade more landlords to leave the private rented sector and turn to short-term lets.
Baroness Taylor said she intends to regulate short-term lets via a national registration scheme, but she admitted the scheme remains in development.