Paragon: Letting agents must be regulated

News Category: Legal

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Letting agents must be regulated in order to protect their clients, according to Paragon Mortgages.

Managing director John Heron stated that the good work carried out by many letting agents can be cancelled out by "rogue elements" that blight the private rented sector.

He added: "We have seen agents leaving landlords and tenants out of pocket all too often during this economic downturn by running off with deposits and rent."

Mr Heron was speaking after the new housing minister Grant Shapps stated in his first major speech in parliament that plans by the Labour government to introduce new regulations for letting agents are to be scrapped.

However, landlords will not be subjected to more red tape, a promise that was welcomed by the Paragon managing director.

Last week, letting agent body Arla voiced its disapproval of Mr Shapps' decision not to introduce new regulations, with operations manager Ian Potter stating that standards in the sector could slip as a result.

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