The Government has rejected a proposal to introduce minimum qualifications and greater regulation for letting agent staff during the latest debate in the Lords over the looming Renters’ Rights Bill.

Each stage is an opportunity for Lords to introduce amendments to the draft legislation and Lord Best, who lead parliamentary committee that created the Regulation of Property Agents (RoPA) recommendations, spoke at length about his desire for these to be implemented, including them within two new amendment.

The first would have seen all letting agent staff required to attain, or be working towards, an NVQ Level 3 certificate in order to manage property, while a second sought to require anyone seeking membership of a redress scheme to be in the same position.

“[This] Bill presents an opportunity to up the game of the agents who look after property management for so much of the private sector’s lettings,” he said.

Billions of pounds

“Billions of pounds of assets and millions of lives of renting households are affected by the quality of service and competence of lettings agents; and landlords too will increasingly need to use agents to ensure adherence to all statutory requirements.

“These amendments indicate a direction of travel. They would demonstrate the Government’s willingness to finally address a serious national concern which has the strongest support from those representing landlords, agents and in particular renters.”

But Government minister Baroness Taylor of Stevenage (main image) rejected both amendments, which without her support cannot become law, saying – effectively – that the Government has bigger fish to fry.

She said: “We are continuing to consider this issue carefully and have already announced our intention to introduce minimum qualifications for property managing agents of leasehold properties and estate managers of freehold estates, and to consult on this issue this year.

“We will set out our full position on the regulation of letting, managing and estate agents in due course.”

Sean Hooker, Head of Property Redress, says: “We support the calls for minimum qualifications for all agents and for the introduction of a regulator with a code and disciplinary powers.

“Redress is a vital service in terms of resolving disputes and repairing relationships but the existing bodies are not enforcement agencies or arbiters on whether an agent is fit to operate.

“This said, relying on under-resourced and hard-pressed local authorities and courts, is also not a viable solution if we want to genuinely see standards raised.

“We eagerly await the promised proposals by the Government, sooner rather than later as we believe a regulated profession unpins the objectives and principles of the bill.”

The Bill has now finished its Lords Committee stage and must now pass two more sessions of scrutiny before returning to the Commons for its final two stages before becoming law, most likely in the Autumn.

More reaction

Timothy Douglas, Head of Policy and Campaigns at Propertymark

“Propertymark is pleased to see continued acknowledgement from Peers that now is the time to act on the regulation of property agents,” he says.

“Although the UK Government prefers a phased approach, this lack of a firm timetable is disappointing as the property sector is going through significant change because of the proposals in the Renters’ Rights Bill, legislation impacting leaseholders, changing rules for financial sanctions checks and recent new building and fire safety requirements means there is a desperate need for a coordinate approach to regulation across multi-disciplines of property agency and management to protect consumers.

“These changes are important but without regulating and driving up standards for sales, lettings and managing agents who will implement these rules and work with consumers often at the start of their home buying and renting journey, the UK Government not only risks doing half a job when it comes to levelling up the housing market but this could risk thwarting confidence across the industry.

“We will continue to work with Ministers, officials, MPs, Peers and policymakers to ensure that regulation becomes a reality and compliments the proposals contained in the Renters’ Rights Bill and wider housing legislation.”