Who will this Protect?
I was interested to read the press release from the outgoing redress scheme Ombudsman Services - Property (OS:P) who will cease to operate from midnight on 6th August 2018.
Property Industry Eye article read here
Whilst I welcome this debate, OS:P pulling out has caused disruption for good firms that thought they were doing the right thing. However OS:Ps calls for a one stop shop for property complaints and also those of TPO, feel quite monopolistic.
When the PRS was created over four years ago, it provided choice, a reduction in the price of redress and healthy competition. All the schemes were regulated by the authorities and backed by the law along with punishment for non compliance. However firms could chose the scheme that best suited them. It has worked reasonably well with the PRS now having over 7,000 members. Mandatory client money protection is also coming thanks in part to our work to get it on the statute book and along with insurance for professional indemnity this will strengthen the consumers chances of mitigating their losses.
The journey is not yet complete as we need better regulation than we have a the moment - but do we need codes no-one reads, tests from which nothing is learned and laws that are not enforced?
Just making a single scheme the one and only but not changing the way things are done will just lead to the same old, same old. Adopting a one size fits all regulatory body, based on the voluntary model that was designed for and suits the larger firms and the mainstream part of the industry could mean that their interests are served but smaller agents, new start ups and innovators in the sector could struggle to emerge and thrive.
I accept that the consumer has to have a clear and understandable pathway and we have been working with National Trading Standards to create a single portal by which a complainant can be signed posted in the right direction. A coordinated process of consumer assistance, genuine professional training and education and enforcement of the laws could evolve out of this approach whilst allowing for innovation and expertise to be developed that improved the sector. The consumer deserves more protection and the property world needs to adapt, improve and raise its standards, however what we need is good regulation not self interested protectionism.
What are your thoughts?
Helping landlords understand the laws that apply to rented property, avoid penalties & prosecutions, and save money.
6 年People complain and governments try to 'do something' but the real problem is with enforcement - mainly lack of funding for enforcement along with funding training for the enforcement officers.? You have to have people to do the enforcement work and they need to know what they are doing. I also think reducing the schemes to one would be a retrograde step.? A monopoly is not the answer.