Posts with tag: property agents

New banning orders for rogue landlords in UK revealed

Published On: December 15, 2016 at 10:35 am

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Categories: Landlord News

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The Government has introduced a public consultation as part of more measures to crack down on rogue landlords and letting agents.

These proposals to find and remove rogues from the sector have been sent out in an official consultation document, with feedback requested by the 10th February 2017.

Offences

According to the document, the orders would be put into place when rogue landlords commit more serious offences against their tenants. These measures include failing to carry out necessary work required to prevent a health and safety risk, threatening violence or illegally evicting tenants.

The proposals state that if a landlord or property agent is subjected to a banning order, they could be stopped from letting or managing a property for an indefinite period. In addition, their name would be on a national database of rogue landlords and agents.

Housing Minister Gavin Barwell noted: ‘Banning orders will allow us to drive out the worst offenders and help make sure millions of hard-working private tenants across the country are protected from exploitation. While the vast majority of landlords are responsible we are determined to tackle the minority who abuse and exploit vulnerable people.’[1]

‘As part of the Government commitment to improving standards within the private rented sector, banning orders will protect tenants and target the small minority of poor landlords and property agents. They will also help local authorities to take robust and effective action against rogues who knowingly rent out unsafe and substandard accommodation,’ he added.[1]

New banning orders for rogue landlords in UK revealed

New banning orders for rogue landlords in UK revealed

Improvements

Under these plans, the banning orders will drive the most serious and prolific offenders to majorly improve the standard of their accommodation that they rent out, or leave the sector altogether. These bans would last for at least one year, with no maximums.

Those subjected to banning order will not be able to earn income from either renting out housing, or by engaging in letting agency or property management work.

These banning order are part of a larger range of measures brought in in the Housing and Planning Act 2016, in order to tackle rogues. This includes a database of rogue landlords and property agents, who have been convicted of offences or have received two or more civil penalties.

[1] http://www.propertywire.com/news/europe/details-planned-new-banning-orders-rogue-landlords-uk-revealed/

 

Agents Make Ex Gratia Payments to Avoid CPR Prosecutions

Published On: July 21, 2015 at 3:03 pm

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Categories: Finance News

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It appears that there has been just one successful prosecution brought under Consumer Protection Regulations (CPRs), but there have been “hundreds or maybe thousands of ex gratia payments.”

Agents Make Ex Gratia Payments to Avoid CPR Prosecutions

Agents Make Ex Gratia Payments to Avoid CPR Prosecutions

Agents made the payments secretly to dissatisfied buyers and tenants, who “wasted time and money pursuing a property only to find out some material fact that they should have been informed about at the outset.”

The payments would have been made to customers on the basis of signing non-disclosure agreements to settle the matter.

The deals avoid the agents going to court and consumers receive direct payment in these agreements, which they do not benefit from if the agent is fined in court.

This was all revealed by compliance expert Michael Day, of consultancy company Integra, who says that agents must take CPRs seriously.

He warns that agents must become “much more vigilant in seeking out and obtaining information than they may have been previously.”1

Failure to disclose a fact about a property that could affect a buyer’s decision – not just on making an offer or to commission a surveyor or conveyancer, but to view a property – could harm agents.

Day supports the Property Ombudsman’s advice, which is to disclose any information, regardless of any doubt.

Agents can be fined up to £5,000 per offence in a magistrates’ court, or an unlimited fine at a crown court. Two-year prison sentences are also possible.

1 http://www.propertyindustryeye.com/agents-avoid-cpr-prosecutions-by-making-ex-gratia-payments/