An Initial assessment of private rental sector suggests a significant minority of landlords and letting agents may not be following consumer protection rules according to the Competition and Markets Authority (CMA)
The authority found that while many landlords and letting agents are providing a good service, initial engagement by the CMA heard many complaints raised by stakeholders suggesting that a significant minority are not complying with consumer protection law.
Sarah Cardell, Chief Executive of the CMA, said:
“The CMA alone can’t resolve the problems in the UK housing market. But we have a role to play and will do our part to help ensure the private rental and housebuilding markets work better for people and businesses.
“For private renters, we’re taking action to provide updated guidance for lettings agents so that both tenants and landlords are really clear about their own rights and responsibilities. We’ve also identified areas of concern relating to zero deposit schemes, sham licences, onerous guarantee clauses, and possible unlawful discrimination. These warrant further investigation and we stand ready to take enforcement action if needed.
Concerns about the private rental market raised with the CMA included zero deposit schemes, where tenants are not required to pay a large deposit when beginning a tenancy but may be unaware of their liabilities. Sham licences, where tenants were told by landlords that they only had a licence to occupy a property rather than having the full consumer rights of an assured tenancy, were also raised as a concern.
