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Revealed: In two years just three penalty notices issued to agents breaking the law
Original Author: Rosalind Renshaw
Two years after it became law for letting agents to display their fees, Freedom of Information requests have found that 93% of councils have failed to issue a single financial penalty for non-compliance.
The FoI requests were put by the National Approved Letting Scheme, which is now asking how local Trading Standards teams will enforce the ban on letting agent fees charged to tenants when it comes in.
These asked local authorities a number of questions on the Consumer Rights Act legislation on the display of fees and how it was being enforced. The display of fees has been mandatory since May 27, 2015.
Of the 42 councils which responded, only three had issued penalty notices – Warwickshire, Kensington & Chelsea, and Redbridge.
Of these, only one – issued by Warwick – has been paid in full.
NALS said that the lack of notices served by councils raises clear concerns that the level of penalty may not be enough to cover the cost of enforcement. Currently, the maximum penalty is £5,000.
Most (59%) of the councils admitted they do not consider the display of letting agent fees represents a high priority for the allocation of resources within Trading Standards.
Almost half of local authorities (45%) said they only undertake reactive enforcement activity.
A third of local authorities (33%) allocated no staffing resources to this work in 2016/17, while 62% anticipate no changes in the level of staffing resources in 2017/18.
The research also raises questions about how any future fee ban would be enforced, with two thirds of local authorities (64%) revealing they have not yet assessed the likely impact on enforcement.
Isobel Thomson, chief executive of NALS, said: “We’re clearly concerned by these results and the disconnect between Government’s aspirations with consumer protection legislation and the reality of delivery through enforcement.
“We recognise Trading Standards teams are under-funded and under-resourced, but if local authorities aren’t enforcing the current legislation, what will make things different when the fee ban is implemented?
“Without sufficient robust and coherent enforcement action, we will never stop the criminal element in the PRS.
“They will continue to operate knowing they won’t face any penalty, and it’s the consumer who will continue to suffer.
“We believe now is the time to start a constructive dialogue with the Chartered Trading Standards Institute and its members on how we can work together to stamp out the rogues.”
Leon Livermore, chief executive of the Chartered Trading Standards Institute, said: “We welcome the research produced by NALS and believe that it highlights the issues of the robust enforcement needed for existing regulation that can deliver for the consumer.”
The survey did, however, highlight some good practice. Brighton & Hove had undertaken a project which led to 100% compliance of all the known letting agents in the city; North Yorkshire had proactively provided written advice to 143 letting agents.
The survey was independently undertaken by the consultancy London Property Licensing on behalf of NALS in April and May and involved a sample of 49 local authorities across England.
Full list of local authorities surveyed:
Buckinghamshire, Cornwall, Cumbria, Devon & Somerset, East Sussex, Hertfordshire, Lancashire, North Yorkshire, Nottinghamshire, Suffolk, Warwickshire, Worcestershire, Bolton, Manchester, Oldham, Stockport, Trafford, St Helens, Wirral, Barnsley, Rotherham, Sunderland, South Tyneside, Wolverhampton, Sandwell, Walsall, West Yorkshire Joint Services (includes Calderdale), Barnet, Brent, Croydon, Kensington & Chelsea, Richmond uponThames, Redbridge, Southwark, Bath & North East Somerset, Brighton & Hove, Durham, Herefordshire, Middlesbrough, Nottingham, Redcar & Cleveland and South Gloucestershire.
No response from:
Bexley, Birmingham, Gloucestershire, Lincolnshire, Liverpool, Torbay and Wokingham.
