Disrupting the market to help tenants
The internet has already shaken up the music industry, television, taxis and self-catering holidays. Investors are now looking for the next industry to disrupt with technology and property seems ripe for the picking.
As the national voice of private renters, we agree that the property industry as it stands fails its consumers in too many ways, so things need to change. Even when we succeed in changing the law, like the forthcoming letting fees ban, we still need to ensure that it’s implemented properly and the industry adapts in the right way.
But we can’t allow slick and revolutionary new services or initiatives to simply treat tenants as cash cows in the same way that many letting agents and landlords currently do. So this is what we think the market needs – and how the tenant should benefit.
Lodgers need protection too
Where’s my deposit? It is no joking matter for nearly 300,000 tenants whose landlord has not protected their deposit.
This has left many out of pocket without a clue of how they will manage to raise another deposit – the average amount in London stands at £1040 for their next property.
Major letting agent backs all-custodial deposit protection
Eric Walker is Managing Director of Northwood UK and tweets at @justericwalker
We in the property industry have more common ground with the likes of Generation Rent and Shelter than many would think. Professional agents do an immense job and provide a valuable service to help protect consumers from the small minority of rogue agents. MPs call for regulation every day, yet the only group which can change the law is in fact the politicians who refuse to do so.
This Government wants agents to regulate themselves. Their reason is in no small part due to the horrors which would be uncovered if agents were forced to regulate. Clients’ money should be held in a ‚Äòring-fenced’ client account, but while this may protect money from creditors, it is not ring-fenced from the agent. If their business is struggling, there is little point in seeking bank assistance and as such, clients’ money is a very tempting resource.