Letting agents face investigation over missing deposits
22/01/2010 -
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Reports are emerging, that there are a number of branches belonging to the Belvoir lettings agency, of alleged fraud involving letting deposits. The four branches that are believed to be involved are based in Birmingham, St Albans, Gravesend and Norwich. The branches are part of the franchise and as such are run as independent businesses. The issues have come to light over the past 12 months.
The founder of Belvoir, Mike Goddard said “There is no regulation at the moment which requires lettings agents to operate a ring fenced clients’ accounts, although there is a degree of protection for tenants’ deposits under the various tenancy deposit schemes.”
Legislation already exists to protect tenants by requiring their landlord to protect deposits but there is no requirement for agents working on behalf of landlords to be regulated and therefore there is no protection if the letting agents goes under or spends the money themselves.
There are already schemes that letting agents can use to insure the money such as the one run by National Approved Letting Scheme, most of the Belvoir franchises are already members and Mike Goddard said “The vast majority of our offices are members (of NALS) and as such are independently audited and have the benefit of first resort client money protection insurance.
