"To ensure the proper functioning of those operating within the PRS, it is imperative to address the challenges that agents face concerning the sudden and unexplained closure of their client accounts by banks"
safeagent states that by extending the reforms the Government can demonstrate its commitment to supporting the PRS and ensuring that agents can operate with stability and confidence whilst upholding the highest industry standards.
Isobel Thomson, Chief Executive of safeagent, explains: “To ensure the proper functioning of those operating within the PRS, it is imperative to address the challenges that agents face concerning the sudden and unexplained closure of their client accounts by banks.
“These accounts securely hold landlords' rental income and tenants' deposits, as is legally required, and we have seen a number of instances where these accounts have been subjected to unexpected closures, significantly disrupting business operations.
“The current situation forces agents to navigate a labyrinth of obstacles when attempting to open new client accounts with other banks; most notably the stringent criteria set, rendering the process nearly unachievable for many agents, especially small businesses.
She concludes: “If the Government is committed to elevating industry standards within the PRS, swift action must be taken to address this pressing issue. The inability of lettings and management agents to access reliable and compliant client accounts hinders their ability to operate effectively and ethically, undermining the Government's goal of fostering a thriving and secure rental market.”
