Fears raised as estate agents 'switch jobs'

18/03/2009

Estate agents are changing jobs to become letting agents, due to the continuing property slump.

A report from the Association of Residential Letting Agents (Arla) shows that many are making the switch due to increasing demand for rental properties - and low demand among homebuyers.

According to a poll of the group's members, 76 per cent have observed estate agents in their area moving to become lettings agents.

House prices have dropped by around 20 per cent due to the credit crunch, leaving many unwilling to "catch a falling knife" by getting on the property ladder.

The crisis has also made affordable mortgage loans much harder to secure on the high street.

Ian Potter, operations manager of Arla, said: "In order to make the transition from an estate agent to a lettings agent, they need to have studied more than a hundred different pieces of legislation, and pass minimum competency tests to ensure their ability to advise clients to the required standards.

"This is a big concern for landlords and consumers. Those consulting an agent need to be absolutely sure they are getting the best advice possible to ensure the safety of their investment."

A new report from the Ombudsman for Estate Agents has also shown that complaints numbers among homebuyers remain high.

Just three per cent fewer disputes were recorded by the service in 2008, compared to 2007 - despite market activity more than halving over the year.

Tags; Budgeting Advice, Young Family Finances, Recent Graduate Debt,

• Share
• 
• 
• Store
• 
• Follow
•