The recently published Carsberg Review of Residential Lettings has called for the establishment of a regulatory body for the industry and that consumer interests need to be at the centre of all policy making.

The report has recommended that all landlords, letting and management agents should be subject to regulation. Although many agents are signed up to voluntary arrangements, the report found this offered little protection to the consumer when it came to those agents who chose not to enter in to these arrangements. The regulator should be given the power of sanctions over agents, with the ability to exclude people from operating as agents, a power that currently resides with the Office of Fair Trading (ONS).

The report highlighted the need for all agents to obtain a professional qualification with an emphasis on their knowledge of the law, although those highly experienced agents could be exempt from this. This is again something that voluntary associations offer but that now should be made compulsory.

Protection for the consumer was a key recommendation made by the report. Agents would be required to offer greater levels of transparency throughout the transaction especially with regards to pricing, conflicts of interest and fees. Agents should also offer consumers advice on all the different processes involved in a transaction and how they could improve the speed with which a transaction is completed.

Ian Potter, head of operations at the Association of Residential Letting Agents (ARLA), said: “The private rented sector is growing and with the Carsberg Review calling for independent redress and the licensing of letting agents, hopefully the Government will now act to help us with framework legislation. We need to be rid of the cowboy agents who will try to take advantage of this growth.”