John Heron, Paragon Mortgages’ managing director, welcomes the Government’s decision to scrap additional red-tape for the UK’s private landlords, but believes that ignoring letting agent regulation is a mistake.

The Government announced on 10th June that it would not be proceeding with new regulations for the private rented sector, proposed by the previous Labour Government. The new Housing Minister, Grant Shapps also pledged not to introduce further red tape for landlords operating in the sector.

The now discarded regulation proposals included: a national register of landlords; the mandatory regulation of letting and managing agents; compulsory written tenancy agreements.

According to Heron “The total rejection of the Rugg Review Recommendation proposals looks ill-thought out and ignores many of the positive outcomes that certain proposals could have generated. Whilst we applaud moves to scrap additional red-tape for landlords, who are already heavily regulated, there remains a need for mandatory regulation of letting and managing agents.

“There are no mandatory controls of letting agents at present, leaving both landlords and tenants at the mercy of the rogue elements that unfortunately blight the sector, undermining the good work carried out by the majority of letting and property management agents.

“We have seen many agents leaving landlords and tenants out of pocket during this economic downturn by running off with their deposits and rent. The Government could have put an end to this by requiring agents to belong to one of the existing voluntary licensing schemes from the likes of the Association of Residential Letting Agents or the National Approved Letting Scheme,” Heron concluded.