Lack of regulation in buy to let sector 'disappointing'

10 June 2010

Written by Steve Olejnik

The government's decision not to go forward with the regulation
of the buy to let sector planned by the previous leaders has left one organisation "extremely disappointed".

The Association of Residential Letting Agents (Arla) has responded to an announcement by housing minister Grant Shapps that the promise of legislation would be scrapped.

Ian Potter, operations manager of the body, said the abandonment of the plan puts the reputation of the private rental sector at risk, while tenants will lack protection from fraud or bad services.

"A minimum requirement must be surely be consumer redress and protection of all funds taken from the public, not just tenants deposits," Mr Potter stated.

Properties can currently be let by any person or organisation regardless of their qualifications and scruples, he went on. Without mandatory regulation, the sector may not see any improvement in its standards and tenants will continue to be put at risk.

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