Enterprise and Regulatory Reform Bill

Insert the following new Clause—

“Letting agents etc.

(1) In section 1 of the Estate Agents Act 1979 (estate agency work), for “to which this Act applies” substitute “and in subsection (1A) below to which this Act applies.

(1A) This Act also applies, subject to subsections (2) to (4) below, to—

(a) things done by any person in the course of a business (including a business in which he is employed) pursuant to instructions received from another person (in this section referred to as “the client”) who wishes to let or have the letting of an interest in land managed (for example, the collection of rents on his behalf)—

(i) for the purpose of, or with a view to, effecting the introduction to the client of a third person who wishes to let an interest in land; or

(ii) after such introduction has been effected in the course of that business, for the purpose of securing the letting of the interest in land; or

(iii) for the purpose of, or with a view to, managing the letting of the interest in land on behalf of the client; or

(iv) for the purpose of, or with a view to, block management of interests in land; and

(b) management activities undertaken by any person in the course of a business (including a business in which he is employed) in connection with land or interests in land.””

Insert the following new Clause—

“Consumers, Estate Agents and Redress Act 2007: letting agents etc.

(1) The Consumers, Estate Agents and Redress Act 2007 is amended as follows.

(2) In section 53(1), for “estate agents” substitute “relevant estate agency work”.

(3) In paragraph 2 of Schedule 6, for subsection (1) of the inserted section 23A (Redress schemes), substitute—

“(1) The Secretary of State may by order require persons who engage in relevant estate agency work in relation to residential property to be members of an approved redress scheme for dealing with complaints in connection with that work.

(1A) For the purposes of this section, “relevant estate agency work” includes estate agency work and also letting and management agency work.

(1B) For the purpose of this section, “letting agency work” refers to things done by any person in the course of a business (including a business in which he is employed) pursuant to instructions received from another person (in this section referred to as “the client”) who wishes to let or have the letting of an interest in land managed (for example, the collection of rents on his behalf)—

(a) for the purpose of, or with a view to, effecting the introduction to the client of a third person who wishes to let an interest in land; or

(b) after such introduction has been effected in the course of that business, for the purpose of securing the letting of the interest in land; or

(c) for the purpose of, or with a view to, managing the letting of the interest in land on behalf of the client; or

(d) for the purpose of, or with a view to, block management of interests in land.

(1C) For the purpose of this section, “management agency work” refers to management activities undertaken by any person in the course of a business (including a business in which he is employed) in connection with land or interests in land.””