The Custodian Insurance Industry Blog

March 21, 2014

All change for Estate agents and Letting agents…

There is so much change in the landscape property agents operating within.

The changes are economic, legislative and behavioural.

The upturn in the economy, low interest rates, the help to buy and escalating house prices are fuelling the housing market.  This same inflation in property prices is also leading more people to rent properties.

The CPRs is a key legal change – it will increase a property agent’s liability through increasing their disclosure obligations to potential buyers and tenants.

The Immigration Bill – looks set to create a proscribed process to go through in validating tenant identities.

Universal Credit –  will change how Housing Benefits will be paid.  So they will be paid directly to the claimant, rather than to the landlord.

The emergence of the ‘no win no fee’ lawyers in the property space.  There is an expectation that one of the larger contingency law firms will be turning their attention to tenants and how they can provide a contingent fee in pursuing their property agents.  One area this could happen is in the late registering of deposits.

All these things combine to create a changing environment with many uncertainties.

This makes it more important than ever to ensure you are well covered by Professional Indemnity insurance with a provider that understands these exposures.

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