Agents charging unlawful tenant fees or failing to join government-approved deposit schemes will face fines
By Simon Allin, Local Democracy Reporter

credit Ethan Wilkinson via Unsplash

Rogue letting agents will face fines of up to £30,000 in a crackdown agreed by councillors in Barnet.

Agents who charge unlawful tenant fees and fail to join government-approved client money protection schemes will face financial penalties under measures agreed by the environment committee on Monday (21st).

Legislation introduced by the government in 2019 banned agents from charging most tenants’ fees in order to protect customers from hidden costs. It also required agents to be members of a government-approved client money protection scheme to ensure landlords and tenants are compensated if an agent cannot repay their money.

According to a report presented to the meeting, the proportion of households renting privately in London increased from around 15% at the turn of the century to 27% by 2019. Meanwhile, private rents in the capital have risen by 43% since 2005.

A large lettings agent industry has grown up in the capital, and it is estimated that there are 10,000 lettings agents in London. The report states that there is “evidence of widespread non-compliance with legal requirements in the sector”, with only 54% of London agents fully compliant with the law when inspected by trading standards officers during 2018/19.

The policy adopted by the council imposes penalties of up to £30,000 for those who have failed to join an approved client money protection scheme. Smaller penalties of £5,000 can be imposed on agents who fail to display, publish or produce a certificate of membership of an approved client money protection scheme.

In addition, £5,000 penalties can be imposed on a landlord or agent who requires a tenant or landlord to make a ‘prohibited payment’, or where they are in breach of the requirement to repay a holding deposit. The penalty rises to £30,000 where a landlord or agent has required a tenant or landlord to make a ‘prohibited payment’ within five years of a previous conviction or imposition of a civil penalty.

The council confirmed after the meeting had taken place that the lettings enforcement policy was agreed by the committee.

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