Regulation of Property Agents – RoPA

What is RoPA?

RoPA stands for the Regulation of Property Agents.

In October 2018, UK Housing Minister, Heather Wheeler, announced that a new working group called RoPA would be set up and tasked with advising the UK Government on a new regulatory framework for letting, managing and estate agents.

The working group is chaired by Lord Best, who has been an independent crossbencher of the House of Lords since 2001. He has extensive experience from his years working across the housing sector.

What was the aim of RoPA?

The RoPA working group was created to advise the government on:

• a model for an independent property agent regulator, including how it will operate and how it will enforce compliance
• a single, mandatory and legally enforceable Code of Practice for property agents;
• a system of minimum entry requirements and continuing professional development for property agents
• explore fees, charges, and ability to choose a managing agent for leaseholders and freeholders.

Why is the group recommending licensing?

Professional agents agree that bad practice is detrimental to consumers, agents and the reputation of the property sector.

In minutes on the Gov.UK website we can see that the group agreed that there should be a single regulator with licensing powers. This body should have the ability to set standards for property agents in the form of a code of practice and qualifications requirements; as well as undertaking risk-based investigation and intelligence gathering. Members agreed the body should have the power to undertake a range of enforcement actions against agents who fail to comply, ranging from ordering training through to revocation of licenses for the worst offenders. The regulator should be independent of the sector and accountable to the Ministry of Housing, Communities and Local Government. It should be financed by contributions from regulated firms.

How could this affect you?

All letting agents should have a minimum standard of training, and a minimum of one person per agency should have a higher level of qualification.

Licensing would facilitate a structure of regulation, including adherence to a code of practice, a fit and proper persons test for directors and a register of agency licences available to consumers. In turn, this would drive up the standards of service provided to consumers.

Although we don’t know for sure what will happen yet, we are being informed by our professional bodies that all staff who are customer-facing within residential agency business should hold a qualification at Level 3 or above. This is equivalent to an A’Level

All company directors and management agents should be qualified to a minimum of Level 4. This is equivalent to Degree level.

This could mean that hundreds of lettings and management agents need to train and get qualified. We are confident that anyone serious in the sector will want to do this, but how long will that take and will that mean the industry loses high levels of staff who are not qualified?

At EVC Property Management Ltd, Emma is already degree level qualified and we hope this will mean we are ahead of the game!