The introduction of professional standards which would result in the compulsory regulation of lettings agents could generate over £20m per year to the UK economy, according to RICS.

It is currently possible for anyone without any appropriate qualifications or industry knowledge to start a lettings agency which means that tenants and landlords could potentially be taken advantage of by unscrupulous practices with no recompense or legal cover.

Jack Dromey, Shadow Housing Minister, said: “(we call on) the Government to regulate residential lettings and management agents and to end the confusing, inconsistent charges regime, making fees easily understandable, upfront and comparable across agents.”

RICS research indicates that following an initial set-up cost of £45m the regulation of UK lettings agents and the introduction of professional standards for all agents to the industry would provide net benefits of over £20m per year and would thus pay for itself within less than two-and-a-half years. RICS say that 90% of consumers agree that regulation of the lettings industry was much needed.

Peter Bolton King, RICS Global Residential Director, said: “These findings demonstrate exactly why the government needs to act, not just to safeguard the thousands of tenants and landlords who fall victim to unscrupulous practice, but also to relieve pressure on the wider economy.

”RICS has long called for a single regulatory and redress system for letting agents, which this survey demonstrates is clearly supported by the overwhelming majority of consumers. Until this happens, we recommend that tenants use a lettings agent that is a member of a professional organisation, such as RICS.”

Although agents who sell property are subject to loose regulation, the lettings industry is completely unregulated. RICS is seeking for the law to be changed to ensure that lettings agents fall under the same scrutiny.