Letting agents face calls for stronger regulation and qualifications
The Lettings Industry Council (TLIC) has proposed a new regulatory framework to improve accountability and professionalism among UK letting agents, urging the government to introduce mandatory qualifications and a code of conduct.
The TLIC report highlights a significant regulatory gap in the lettings market, where many agents operate without formal qualifications or consistent oversight. This development comes amid ongoing changes in tenancy law and increased scrutiny of letting practices following the Renters’ Rights Act.
The council’s recommendations aim to ensure consumers receive reliable service and to raise standards across the sector. The proposals include compulsory property qualifications for agents and a mandatory code of conduct, measures designed to enhance transparency and protect tenants and landlords alike.
Proposals for closing the regulatory gap in lettings
According to research conducted by the TLIC in 2025, 65% of letting agents lack any property qualification, and 82% of those surveyed believe that stronger regulation would improve professionalism within the industry. The council argues that this lack of formal standards contributes to inconsistent accountability and undermines consumer confidence.
The TLIC’s report calls on the Ministry of Housing, Communities & Local Government to adopt a regulatory framework that mandates qualifications and enforces a code of conduct for all letting agents. This framework is intended to close the “regulatory gap” that currently allows some agents to operate without sufficient oversight or professional standards.
Theresa Wallace, co-chair of the council, emphasised the urgency of these reforms in light of the Renters’ Rights Act, which has reshaped the lettings market. She stated that a more professionalised sector is essential to maintain public trust and uphold high standards of service.
Context of the lettings market and regulatory challenges
The UK lettings market has undergone significant changes in recent years, with legislative reforms such as the Renters’ Rights Act introducing new tenant protections and altering eviction procedures. These changes have increased the complexity of managing rental properties and heightened the need for professional expertise among letting agents.
Despite these shifts, regulation of letting agents remains fragmented. Unlike estate agents, who are regulated by the Financial Conduct Authority and governed by professional bodies, letting agents have historically faced less stringent requirements. This has led to calls from industry groups and consumer advocates for a unified regulatory approach.
Lord Richard Best, chair of the Regulation of Property Agents Working Group, welcomed the TLIC’s report, noting that it builds on previous recommendations and provides clearer guidance for government action. He highlighted the importance of qualifications and professionalism in safeguarding the interests of landlords and tenants.
Practical implications for landlords and letting agents
If the government adopts the TLIC’s recommendations, letting agents will need to obtain recognised property qualifications and adhere to a formal code of conduct. This could affect small and independent agents who currently operate without such credentials, potentially increasing compliance costs and administrative burdens.
For landlords, stronger regulation of letting agents may offer greater assurance that their properties are managed competently and in line with legal obligations. It could also improve tenant relations by ensuring agents provide consistent, transparent communication and uphold ethical standards.
Letting agents should begin assessing their current qualifications and compliance procedures in anticipation of potential regulatory changes. Ensuring staff are trained and that operational policies align with emerging standards will be critical to maintaining competitiveness and avoiding enforcement action.
Outstanding questions and future developments
The TLIC report does not specify detailed implementation timelines or enforcement mechanisms, leaving uncertainty about how quickly and rigorously new regulations might be applied. The government’s response and consultation process will be key to shaping the final regulatory framework.
It remains unclear whether the proposed qualifications will be mandatory for all agents or phased in over time, and how existing agents without formal credentials will be supported to meet new requirements. The scope of the code of conduct and the body responsible for oversight also require clarification.
Landlords and agents should monitor official announcements and guidance closely. Early engagement with professional bodies and training providers may offer advantages in adapting to forthcoming regulatory expectations.
What landlords and agents should consider now
- Review current letting agent arrangements and assess their qualifications and compliance status.
- Engage with professional associations to understand emerging best practices and training opportunities.
- Prepare for potential changes in regulation by updating tenancy management procedures and documentation.
- Stay informed about government consultations and policy developments relating to lettings regulation.
Supporting landlords through regulatory change
The Landlord Association (TLA) offers members access to comprehensive compliance resources and practical guidance to help navigate evolving regulatory requirements. Through membership, landlords and letting agents can review property records, monitor legislative updates, and maintain evidence of compliance activities.
TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist with organising rental documents, recording key actions such as inspections and communications, and accessing tailored compliance support. While ORBIT is still developing, it promises to be a valuable tool for landlords preparing for enhanced letting agent regulation.
Exploring TLA membership and ORBIT BETA access can provide landlords and agents with timely information and organisational tools to adapt to the proposed regulatory framework and uphold professional standards in their lettings operations.
Looking ahead, the government’s response to the TLIC’s report will be closely watched by the sector. Landlords and agents should be ready to respond to new requirements that aim to professionalise lettings and improve market accountability.
Sources: Landlord Today
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