Partner Article

Full disclosure for tenants or face fines

Leading North East lettings agent Ajay Jagota has welcomed new rules demanding prospective renters are warned in advance about nuisance neighbours, late night disturbance or traffic noise - calling them “sensible protection for tenants and a vital opportunity for landlords”

Rule changes mean landlords and lettings agents will soon be forced to disclose any negative information about their properties to home-seekers, including if the homes are located on busy roads, have lively pubs or clubs nearby and if there is any history of antisocial neighbours – with the threat of £5000 fines or even prison sentences for those who do not comply.

The letting of homes has previously been governed by the 1993 Property Misdescriptions Act (PMA) which specified standards for the accurate marketing of homes both in promotional materials like websites and brochures, and in discussions with prospective tenants.

The government recently announced the repeal of the PMA, deciding that landlords and lettings agents should instead abide by the 2008 Consumer Protection from Unfair Trading Regulations.

These regulations oblige businesses to disclose information considered “fair” to customers and mean in future agents and landlords may face fines of up to £5000 or even prison if they do not admit knowing information which could influence the decision of a prospective tenant to rent or not rent their property.

Ajay Jagota, Managing Director of KIS Lettings, who manage properties for some 700 landlords across the North East from branches in Sunderland, North Tyneside and South Tyneside welcomed the news.

He said: “These changes offer sensible protection for tenants and a vital opportunity for landlords.

“As I’ve said many times, the private rented sector needs to take decisive action to improve its reputation. Any agent or landlord worth dealing with is already following these rules as they’re not just sensible customer service and morally right, they’re a vital first step towards securing and safeguarding the stable long-term tenancies which are the lifeblood of the industry.

“The old motto of “buyer beware” meanwhile is no longer an excuse for the unscrupulous or lazy, who could even face prison if they don’t get their act together.

“The changes are also an important recognition of how Britain is changing. Renting is now a way of life for millions of people with a recent Cambridge University study estimating that by 2025 only one in four people will own their own home.

“You wouldn’t be able to sell a property without disclosing its faults, so why should you be able to rent one? Any changes which put privately-owned homes and privately-rented ones on the same footing can only be a good thing.

“As a landlord conducting a thorough and honest examination of your property’s less appealing characteristics can also be a great defence against things like theft or vandalism which will leave you out of pocket – and not only will a quality lettings agent be able to keep you abreast of your legal responsibilities, they can be a great second pair of eyes when it comes to identifying potential dangers and defects.

“Furthermore, these changes are yet more proof that the industry does not need to be regulated by new rules protecting tenants and landlords alike – the existing rules just need to be enforced much better.”

This was posted in Bdaily's Members' News section by Ajay Jagota .