Issue - meetings

ES20062

This report was presented to the Committee by the Head of Service, Trading Standards & Commercial Regulation. He explained that enforcement guidelines now existed where local authorities may be required to take legal action against property agents who were not looking after their clients’ money properly. The aim of the report was to avoid any legal deficiencies in the enforcement action process (if required) in the future. The final decision regarding the report would be made by the Executive. 

It was felt that this was a complex area of law for which some expert legal advice may be required and LBB was fortunate to be able to engage with a London wide regional expert to support and test the systems, and also to assess compliance in the borough. The crux of the matter was that property agents were required to join a client protection group and should display signs in their offices to confirm such. If firms failed to join a client protection group then they could be fined as much as £30k. The purpose of the client protection group was to ensure that deposits paid by clients were properly protected. There was a smaller fine of £8k that the agents could be liable for if they failed to display the correct signage. It was also the case that there were certain practices that were prohibited under the new legislation and fees were required to be displayed.

The Chairman enquired who would carry out the relevant checks and if it was going to be complaint led. The Head of Service for Trading Standards and Regulation responded that in the initial stages it was likely that it would be complaint led, as the resources would not be there for a blanket enforcement. The policy applied to letting agents and property management firms. The Head of Service for Trading Standards and Regulation stated that he would check if the same regulations would apply to social housing providers and also to individual private landlords and report back.

The Chairman asked for a report to be presented to the Committee by way of an update later in the year.

It was clarified that the cost of any legal expertise initially would be provided by a London Fund—after that it should be the case that LBB would have gained sufficient expertise so that there would be no need going forward to draw upon external legal expertise. The Head of Service for Trading Standards and Regulation explained that there was a statutory obligation to undertake enforcement in this area, but the policy itself was not a statutory policy—the aim was to have the relevant guidelines in place and agreed by the Council so that if enforcement was required in the future, the Council would have an agreed policy/protocol that could be followed.

RESOLVED that   

1)  The Public Protection and Enforcement PDS Committee approve the Model London Lettings Enforcement Policy for adoption by the Executive on the 10th February 2021

2)  An update report on this matter  ...  view the full minutes text for item 96