Letting Sector to Be Regulated in the United Kingdom Reports OnLet

San Francisco, CA -- (SBWIRE) -- 02/25/2013 -- There is a call for more strict regulation on letting agents that has some experts saying it will be good for the U.K. economy.

The Royal Institution of Chartered Surveyors (RICS) has stated that a clampdown on the letting sector is necessary. The institute claims the sector is much like “the property industry's Wild West”, and that a move to regulate it would pay for itself within the first handful of years.

The RICS has warned that it is possible that individuals who are set up as letting agents can do so without the proper qualifications or credentials. Without the knowledge and understand of the rental process, and without the understanding of the code and conduct of the work, it places buyers at a risk.

That means that tenants and landlords are often in danger of being prey to nefarious or simply ncompetent managing by the agents. That has a wider-scope impact on the economy as a whole, according to the RICS.

To back the claim, the RICS compiled economic research from the TBR in order to look into potential impact of regulating the sector.

They noted that nearly 11,600 firms that are in the letting process, though they admit the number could be much higher as the sector has no single register of agents. By implementing stronger regulations, the tally of cost is near £45 million to set up. That includes gathering the right administrative procedures and payment for training. Still, the toughened rules would, according to the estimates, pull in more than £20 million (or 45% of estimated total cost) within the first year.

Global Residential Director of the RICS, Peter Bolton King, stated; "These findings demonstrate exactly why the Government needs to act, not just to safeguard the thousands of tenants and landlords who fall victim to unscrupulous practice, but also to relieve pressure on the wider economy."

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