Twelve months until Letting Agent Code of Practice comes into force

Tuesday 31 January 2017 marks a year to go until the Letting Agent Code of Practice comes into force in Scotland.

The Housing (Scotland) Act 2014 introduces a framework for the regulation of letting agents across Scotland and includes The Letting Agent Code of Practice (Scotland) Regulations 2016, which are due to come into force on 31 January 2018.

The Code of Practice, which all letting agents must comply with, covers standards of practice; the handling of tenants’ and landlords’ money and professional indemnity arrangements. It forms part of a wider framework of changes for letting agents including mandatory registration with a ‘fit and proper’ person test and training requirements before agents can be accepted onto the register.

There will also be a means of redress to the First-Tier Tribunal for breaches of the code as well as powers for Scottish ministers to obtain information and powers of inspection to help monitor compliance.

Further information from the Scottish government about registration and guidance is due to be released in the coming months.

Association of Residential Letting Agents (ARLA) president, Nik Madan, said: “Letting agents play an important part in ensuring the private rented sector is professional and well-managed as well as helping to provide good quality homes which communities in Scotland need.

“The code reflects much of the existing good practice in the industry and is the most sensible form of agent regulation that we have seen announced anywhere in the UK. Through the mandatory training requirement, Client Money Protection and Indemnity Insurance, the Scottish government has effectively put ARLA’s membership criteria onto the statute books. We support their work on this issue.”

Brian Moran, ARLA board member for Scotland, added: “The code will apply to every person who carries out letting agency work in Scotland, so it’s vital that everyone is ensuring they comply with the new rules. It’s now more important than ever for agents to have the correct training and knowledge to work in the sector.”