All unregulated agents banned from deposit protection scheme

The Tenancy Deposit Scheme has been forced by their insurers to withdraw deposit protection and dispute  resolution to letting agents who  are not members of recognised trade bodies.
From April 6, only regulated letting agents and corporate
and individual landlords will be covered by the Tenancy Deposit Scheme and cover will
 be withdrawn from unregulated agents. Tenants are advised
to ensure their landlords have made alternative arrangements to safeguard deposits as soon as possible.
Ian Potter, Operations Manager of ARLA, said that the time had
come to raise awareness about unregulated lettings agents many of whom have had no
formal training and may be completely unqualified. They are also immune from any
form of disciplinary action for misconduct.
He said: "The fact that at the moment
anybody can work as a lettings agent is
ludicrous and, more to the point, dangerous
as it may create great risks for consumers in
the current climate.
Caroline Pickering, NALS Independent Chair, commented: "The TDS decision highlights the importance placed on both accountability and financial security within private rentals.
"Lettings firms need to guarantee optimum
levels of trust and support for both tenants
and landlords. This recent development will
surely come as a wake-up call to all firms who
are not part of any regulatory body and can
not demonstrate to the consumer that they
meet industry standards in the operation of
their businesses.
"It is understandable that insurers are
not willing to insure firms where there is no
knowledge or controls of their accounting
practices.
Potter explained: "It's high time the Government got off the fence and demanded regulation for the rental market and the compulsory licensing of agents. Setting
professional standards for the industry is the
first step to eliminating the cowboys."
The Tenancy Deposit Scheme will be writing to all its members who are unregulated agents. It will also be writing to current tenants whose tenancy is shown to have been arranged through an unregUlated agent to advise them of the change in protection that can be offered and the course of action to take to ensure protection as the law requires. The Tenancy Deposit Scheme says it regrets the action pointing out that it is due to circumstances that are 'well beyond its control
TOS will only be available to members of the following associations:
• Association of Residential Letting Agents (ARLA)
• The National Approved Letting Scheme (NALS)
• The National Association of Estate Agents (NAEA)
• The Royal Institution of Chartered Surveyors (RICS)

If your letting agent is not a member of these associations you must protect you tenants deposit via either mydeposits.com or the Deposit Protection Service by 6th April

Posted 22nd February 2009