OFT evaluation of Foxtons case finds positive benefits for consumers

[Legal Beagles]

The OFT has warned the letting agents sector to check that their terms and conditions are fair and transparent as it publishes an evaluation of its consumer enforcement case against Foxtons for breaching the Unfair Terms in Consumer Contracts Regulations 1999.

More...

[enaid]

Re: OFT evaluation of Foxtons case finds positive benefits for consumers

Just following on from this after watching 'Landlords from Hell'

BBC accuses letting agents of flouting law
Tuesday 12th July 2011
An undercover BBC investigation has shown letting agents apparently prepared to flout laws.

The probe follows last week’s C4 Landlords from Hell programme, and shows one rental manager who was secretly filmed explaining he could harass problematic tenants by changing locks, calling them all day and lying to the police that they were running a brothel.

The housing charity Shelter and the National Association of Estate Agents have condemned the ‘shocking’ practices uncovered by BBC London and are calling for tougher regulation.

The investigation showed several agents breaking the law on compulsory tenancy deposit protection, with one agent saying: “We don’t have to do this.”

Another agent revealed he had to register the deposit but advised the reporter posing as a landlord to break the law. “I am telling you face to face – don’t bother to do that scheme. Ninety per cent of landlords don’t do it. Just keep quiet about it, you’re wasting money.”

The BBC said its investigators have spoken to ‘numerous’ tenants suffering problems with agents and landlords over deposits.

One woman from north London, who is in the middle of a deposit dispute and does not want to be named, said her letting agent had harassed her.

One lettings rental manager said: “I just turn their lives like hell. We call them every five minutes, we send some people to knock on the door. We change sometimes the locks. To make them just hate the life here.

“Reports to the police, they run for business, just like prostitutes and stuff. Then the police come.”

Peter Bolton King, chief executive of the NAEA and ARLA, told the BBC: “What this investigation has uncovered is really quite shocking – the concern is the tenant is being left open to total abuse.

“It’s horrifying, some of the things we’ve seen.”

The BBC named four agents in its investigation: Eurogulf, Ameen Lettings, Delta Lettings and In House Lettings.

Steve Harriott, chief executive of the Tenancy Deposit Scheme, said all tenants should check whether their tenancies had been registered and their deposits protected.

He said: “If tenants cannot get evidence that their tenancy is protected, they should seek advice from ourselves, a lawyer or a housing advice centre. Failing to protect a deposit is a serious matter and one where the courts can award a penalty of up to three times the deposit value.

“Registration is easy to check and should be a first priority for all tenants.”

BBC accuses letting agents of flouting law - Letting Agent Today

[enaid]

Re: OFT evaluation of Foxtons case finds positive benefits for consumers

Letting Agents don't need a Licence to operate and judging by the previous post they get away with some terrible things. As rental is now a large part of housing and is increasing all the time I think better regulations are needed.
Here is a starter I suppose


Tenants win tougher deposit protection rules
Posted on 20 June 2011 by LAN editorial team
Landlords can expect tougher tenancy deposit protection laws after the courts have proved the current rules are unenforceable.
The Residential Landlords Association (RLA) has disclosed talks are underway with the Communities and Local Government Department about changes to the rules.
The new rules could start from October – but are more likely to come in to force from April 2012, says the RLA.
The government want to change the current rules to give tenants greater protection but by still being fair to landlords. The likely changes will be:
Giving the landlord or agent 30 days to protect a deposit rather than the current 14 days
Beefing up penalties for breaking the rules with fines of a minimum one month’s rent up to a maximum of three months’ rent. The current penalty for failing to protect a deposit is three times the value of the deposit.
Letting renters claim up to six years after a tenancy has ended. The Court of Appeal ruled renters could not claim compensation for failure to protect a deposit once a tenancy had ended.
“One concern that the RLA has is that the government currently intends the changes to be retrospective. The issue of failing to give tenants the ‘prescribed’ information also has to be addressed properly, in the RLA’s view,” said a spokesman.
“The RLA also believes that while the government is proposing a minimum penalty of the equivalent of one month’s rent, there may be instances where no penalty is appropriate.
“However, whilst the RLA continues to advise its members to continue to protect deposits and give their tenants the ‘prescribed’ information in line with the Housing Act, the RLA is doing its best to ensure that suitable amendments are made by Parliament.”
These rules relate to tenancy deposit protection in England and Wales. Scotland has separate rules that will soon take effect.

Tenants win tougher deposit protection rules | Letting Agent News