The Industry and Regulators Committee has reiterated its call for the Government to promptly establish a regulator for property agents, a commitment made four years ago.

In a letter addressed to Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities, the Committee emphasized that the delay in government action is adversely affecting tenants, leaseholders, and others, leaving them vulnerable to malpractice.

After reviewing evidence from various stakeholders including tenant and leaseholder advocates, professional bodies representing property agents, The Property Ombudsman, the Leasehold Advisory Service, and National Trading Standards, the Committee found the existing forms of self-regulation, enforcement, and redress in the sector to be reactive or limited in scope.

Furthermore, it concluded that the establishment of a new regulator would significantly improve standards in the sector. The Committee also expressed concerns regarding the adequacy of the Leasehold and Freehold Reform Bill in addressing the challenges faced by leaseholders, advocating for additional regulatory support.

Baroness Taylor, Chair of the Industry and Regulators Committee, stated, “During our inquiry, there was near unanimous evidence from consumers, industry, and existing bodies on the need for statutory regulation of property agents and the establishment of a new regulator.”

She added, “The Government has been sitting on its hands for four years by not acting on the report of the Working Group it set up. In the meantime, the impact of poor regulation is being felt by tenants and leaseholders, and the sector has been left in limbo.”

Baroness Taylor also highlighted the Committee's desire for ministerial involvement in the inquiry, stating, “I have also expressed to the Secretary of State that we would have appreciated a minister from his department providing oral evidence to the inquiry.”