12th October 2004

ARLA Regulated Letting Agents Endorse Compensation Payments

ARLA regulated letting agents believe that compensation should be paid when a complaint against an agent is found to be justified by an independent adjudicator. As a result, ARLA, the Association of Residential Letting Agents, is to move ahead rapidly to put a scheme in place, similar to an ombudsman scheme, that will cover landlords and tenants who use ARLA member agents.

Under the scheme, a compensation award will be payable by a member agent in the event of a breach of the ARLA Code of Practice. This move has been welcomed by the consumer campaigning organisation, Which?

With less than 10% of the membership dissenting, ARLA believes that it has reached the third key stage in the development of the relationship between the consumer, landlords and tenants, and the letting agent. The other keys to consumer confidence and satisfaction are the ARLA Bonding Scheme and the Tenancy Deposit Scheme for Regulated Agents.

ARLA Chief Executive, Adrian Turner commented: “From our discussions with the Office of Fair Trading (OFT) and other government agencies, it is apparent that the property industry as a whole has a limited time in which to demonstrate its ability to self regulate. I’m delighted that our membership has recognized this and they have, in effect, provided a vote of confidence in their ability to deliver a consistent quality service in line with our Code of Practice.”

The go-ahead was given by the ARLA National Council following the positive response to a question in the latest ARLA quarterly survey asking whether or not complainants should be entitled to compensation. A third of all ARLA member offices complete this survey every quarter. This is the largest survey of agents in the Private Rented Sector.

Said Adrian Turner, "This go-ahead is a mandate for the Association from its members to develop complete consumer protection over and above the protection legislated for or proposed by government and its agencies. Compensation, independent Deposit Dispute Resolution and, of course, ARLA Bonding, training and professional qualifications, are just a few of the instruments providing real security for landlords and tenants using a regulated ARLA agent."

Welcoming the ARLA initiative, Emma Harrison, spokeswoman for Which? said, "Which? welcomes the move by ARLA and its members to tackle the issue of compensating people when they have been treated unfairly by their letting agent. Renting and letting can be fraught, so any initiative to drive up standards and give people a better deal is great news for renters."

Home | Agent Search | Information | Buy To Let | Contact | News & Press
Training | Members Area | Privacy Statement and T&C