Draft Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 Draft Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2018

Debate between John Healey and Nicholas Dakin

Tuesday 12th June 2018 General Committees

[John Healey]

Thank you, Mr Gray.

[Nic Dakin (Scunthorpe) (Lab)]

My right hon. Friend is spelling things out really well. What we really want to say is, “We told you so.”

[John Healey]

I have never understood why my really talented hon. Friend hides himself away in the Whips Office. He has quite clearly demonstrated how effective he would be speaking from the Front Bench, rather than simply sitting on the Front Bench.

That was perhaps a rather long preamble. What I really want to say is that the Opposition welcome these regulations, because they cover the ground that we urged on the Government previously. In a way, they make good a gap. Solicitors, other professionals and even estate agents are required to have money protection schemes in place. We have a mandatory money protection scheme in place for renters’ tenancy deposits. The regulations are well overdue, and they are welcome because of that. Many of the better firms in the industry have backed this for some time. The Association of Residential Letting Agents, the British Property Federation, the Association of Residential Managing Agents, the ombudsman and the Housing, Communities and Local Government Committee have, for some time, all been of the view—as have the Opposition—that this is a necessary step.

In the end, the principled case for these regulations is surely that there is no real market in letting agents for renters. Renters cannot shop around for their letting agent, because they do not choose the letting agent who is responsible for the home that they rent and live in, or for the home that they want to rent; that decision is for the landlord. People have no choice about that, because they choose the property and not the letting agent. The draft regulations are a well overdue and welcome recognition of that fundamental point.