Moving home: Greater regulation needed in lettings market

Experts are calling for increased regulation in the rental market to ensure that all letting agents are professional.

The Tenancy Deposit Scheme has claimed that tenants are being let down by an unregulated lettings market, with significant upfront costs, variable fees and a lack of transparency around charges.

Consumers are increasingly turning to property solicitors in an attempt to seek redress against letting agents who, unlike estate agents, do not have to hold membership to an ombudsman.

Malcolm Harrison, spokesman for the Tenancy Deposit Scheme, stated: "The most important things are the safety of clients' money - deposits on the one hand and landlord's rents and floats on the other hand."

According to Mr Harrison, problems arise because letting agents believe that tenants money is their money because of the lack of regulation.

Moreover, transparency must be increased to encourage fairer contracts and the creation of better protections for tenants.  To avoid legal disputes it is important that all parties are aware of the conditions of a contract.

Published by Jessica Shervin