27 Feb

NAEA & ARLA react to RICS report into Transparency in Professional Fees

 

The RICS report into Transparency in professional fees raises the following points, which the National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) is in firm agreement with:

 

- RICS calls for further regulation of letting and managing agents in the PRS which we have strongly supported.

 

- RICS is also in favour of the Property Standards Board as an independent regulatory body. We support the overarching principle of self-regulation which could potentially include the Property Standards Board.

 

- We agree with RICS in stating that the national landlord register doesn’t go far enough, and doesn’t offer enough consumer protection, whilst supporting the concept of industry regulation of landlords as part of a regulated property sector.

 

In response to the report Peter Bolton King, CEO of the NAEA and ARLA says:

 

"The property sector has shown its willingness to offer more consumer protection and ensure that our practices are transparent and open to scrutiny. The RICS report is correct then in setting out an agenda to challenge the wider perception that property transactions are carried out under a cloak of secrecy.

 

“In the past year, ARLA has demonstrated this by launching its licensing scheme. The large numbers of letting agents who have signed up to this scheme and now abide by its strictures demonstrate, very clearly, this determination to offer consumer assurance.

 

“We expect all NAEA & ARLA members to abide by a Code of Practice, which binds them to ensure that all fees and charges are made clear. In addition, we expect the Government's proposals for the regulation of lettings and management agents to further augment our work in this area.

 

“In the near future, we will launch a similar scheme for NAEA estate agents. Our members already follow the strict guidelines we have set out in regards to clear communication with consumers, but the formality of the scheme will offer house buyers and sellers even greater assurance.”