Hansard

I welcome the opportunity to give evidence on the draft Letting Agent Code of Practice (Scotland) Regulations 2016. The private rented sector plays an increasingly important role in meeting housing need across Scotland. Because letting agents manage about half of all annual lettings, they are well positioned to improve standards in the sector by ensuring that the homes they let are of good quality and well managed. Many letting agents operate in a professional manner, but that good practice is not shared by all. The draft code is intended to rectify that by setting out the standards of practice that all letting agents must meet. The key features of the code include a clear framework that has been structured to follow the letting process, making it easy for letting agents, landlords and tenants to navigate; a requirement on letting agents not to act for landlords who are refusing or unreasonably delaying complying with their legal obligations and to inform the relevant authorities, which will help to enforce standards; and a requirement on letting agents to hold client money protection and professional indemnity insurance, providing additional protection for landlords and tenants if things go wrong. In drafting the regulations we have drawn on existing voluntary codes of practice and related documents, worked with industry bodies as well as housing and tenants groups, held a public consultation and, as far as possible, future proofed the document to avoid it becoming out of date, for example due to changes introduced in the Private Housing (Tenancies) (Scotland) Bill. Importantly, the code gives consumers and the Scottish ministers the ability to challenge poor practice by agents through the first-tier tribunal. By providing consumers with a more accessible form of redress, landlords and tenants will be in a better position to assert their rights, which should in turn encourage agents to make improvements in their services. The Scottish ministers will also be able to take breaches of the code into account in determining whether a letting agent should be admitted to, or permitted to remain on, the mandatory register of letting agents that ministers are required to establish. Ultimately, a letting agent who fails to comply with the code may be removed from the register, which would mean that they would no longer be able to operate. The code will support positive change in the letting industry.