31 March 2006

Information about ARLA

As new regulation comes into force this month, ARLA, the lead regulatory body for the private rented sector, has expressed alarm at the current confusion in the rental market. This is due partly to misinformation about the implementation of parts of the Housing Act and partly because of new concerns about service standards. These concerns follow national media coverage given to the activities of some unregulated agents.

ARLA member letting agents report that they have been inundated with calls from anxious landlords following a national advertising campaign by the government. This campaign implies that all landlords and their properties should be licensed.

The reality is that, from this week, some types of Houses in Multiple Occupation and their landlords do need licenses. This mandatory licensing covers shared homes, typical student properties and bedsits. However, landlords have three months from April 6 to obtain these licenses from their local authorities.

Letting agents report that existing landlords and buy to let investors have been alarmed by the advertising campaign because it suggests that licensing and the penalties for failure to comply covers the entire spectrum of the private rented sector. The agents fear that there is a danger that confidence in the private rented sector could be shaken.

Confusion has been compounded as implementation of the new regulations has started at a time when the activities of unregulated agents have been given further national exposure.

However, ARLA takes the view that there is no excuse for landlords, tenants or buy to let investors to fall into problems with the unregulated sector of the market.

Adrian Turner, Chief Executive of ARLA, pointed out that there is constant media support for the activities of the professional bodies in the rental market. These include the demand for strict adherence to codes of conduct and full compliance with client accounting, indemnity insurance and bonding, as well as training and qualifications.

"We are constantly amazed that, with the amount of information made available through the media and by professional bodies like ARLA, landlords and tenants are still prepared to risk using unregulated agents. This is not to say we are complacent. To strengthen protection for the public, ARLA has lobbied successive governments to license all letting agents. That will give us a regime that allows for rogue agents to be closed down fast."

"More positively, regulated agents are kept fully informed of the legal and regulatory requirements in the private rented sector. They can assuage most people's fears, whether the fears are about ethical behaviour, safeguards for clients' money or the latest provisions of a Housing Act and its effect on landlords, tenants and investors in the rental market," Adrian Turner said.

Further details about the requirements of the Housing Act 2004 and other useful information for landlords and tenants are available on www.arla.co.uk.

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