New code of conduct goes with letting agent registration

Most of the headlines for the private rented sector (PRS) in Scotland have been grabbed by the Private Housing (Tenancies) (Scotland) Bill, which was passed after the stage 3 debate in March and is set to become an Act. However, before we get an entirely new tenancy regime for the PRS, the sector will have to grapple with mandatory registration of letting agents.

Part 4 of the Housing (Scotland) Act 2014 makes provision for the registration, regulation and training requirements for letting agents in Scotland. These include a mandatory register of letting agents, a “fit and proper person” test, training requirements, a code of practice to which all letting agents must adhere, and enforcement through the new First-tier Tribunal (which is set to commence from December 2016 for current private rented housing panel cases with other PRS cases following in December 2017).

On 25 February 2016, the Letting Agent Code of Practice (Scotland) Regulations 2016 were laid before the Scottish Parliament. They are set to come into force in January 2018. The code sets out the standard of conduct expected of letting agents.

Once the code is in force, landlords, tenants or the Scottish Government will be able to refer an agent to the First-tier Tribunal if they believe the agent has failed to comply with the code. If an agent is found to be in breach of the code, the First-tier Tribunal must issue what will be known as a letting agent enforcement order (LAEO), setting out why the agent is in breach and what is required to remedy the breach, including timescales for doing so. Failure by an agent to comply with a LAEO could lead to deregistration and possible criminal prosecution.