In March 2024, new figures released by the Property Redress Service (PRS) revealed there had been a marked increase in complaints about letting agents. There had also been a rise in the value of compensation awarded.
The number of complaint enquiries increased by an average of 20% in 2023, when compared to 2022, while there was a 95% increase in the total figure awarded for ‘decisions’ by the PRS – up from £489,916 to £953,062.24.
The most prevalent complaint levied against letting agents involved holding deposits. This was followed by poor service and management, tenancy payments and rent collection. LandlordBuyer frequently assists landlord who are disgruntled with the level of service they are getting from their letting agent or property manager.
Here are some frequently asked questions that may help you determine if you need to make a formal complaint about a letting agent:-
Are letting agents regulated?
This is a hot topic. Currently, the Government’s official line is ‘there is currently no overarching statutory regulation of private sector letting or managing agents in England, although they are subject to consumer protection law and specific provisions in relation to the charging of fees and membership of redress schemes.’
There is, however, something called the Regulation of Property Agents (RoPA), which calls for an independent property-agent regulator, a single, mandatory and legally-enforceable Code of Practice, and a requirement for agents to have minimum level of qualification to be able to practice. This regulation still needs to be enacted for it to become law.
Is there a Governing body for letting agents?
Although not regulated at this point, all letting agents and property managers in England must be a member of one of two Government-approved redress scheme: The Property Ombudsman (of which LandlordBuyer is a member) or The Property Redress Scheme. In Wales, the scheme is called Rent Smart Wales. Agents can also choose to belong to Propertymark – a membership body for property agents – or the Royal Institution of Chartered Surveyors (RICS).
How can I complain about a letting agent?
A landlord’s first step should always be to try and resolve the issue with letting agent directly, following the company’s complaints procedure. A redress scheme will not take on a case unless there has been an effort to resolve the complaint internally. Complaints should be made in writing, detailing the nature of the complaint, what the landlord would like the agent to do about the matter and a suitable timeframe in which the landlord would like the matter resolved.
What can The Property Ombudsman do?
If a landlord is unhappy with how their letting agent has handled their complaint, or if they have failed to provide a suitable resolution, they can take their case to The Property Ombudsman or The Property Redress Scheme – whichever the agent belongs to. If the case is accepted, an adjudicator will be appointed and the matter investigated. Both parties will be called to submit documents as evidence and there may be a hearing.
It’s worth remembering that redress schemes are an alternative to court and its decision may not be the same as that issued by a judge. Additionally, if a landlord is unhappy with the decision made by a redress scheme, they can refer the complaint to Propertymark, provided the agent is a member.
Can I sue a letting agent?
If there has been serious malpractice that has resulted in a substantial loss of rental income or significant damage to a buy-to-let property – or if the letting agent has given the landlord poor legal advice – they can sue for damages using legal representation.
Can a landlord change letting agent?
If a landlord is unhappy with their incumbent letting agent but is not considering self-managing, they can give their agent notice - something that should be done in writing. Landlords should check their terms of business for the notice period– it’s usually three months but to can vary from agent to agent.
Sell and put an end to terrible service
Levels of service vary across the UK and many landlords find they have better results when managing a buy-to-let themselves. For others, selling rental property is the best option. If you’re considering selling a tenanted property or you have a property portfolio for sale, contact LandlordBuyer.
As professional property buyers, we purchase tenanted properties and vacant lets for cash, even if they have disputes, rent arrears or dilapidations as a result of poor management. Why not start with a free online valuation?