Ministers say they are exploring further regulation of the property agent sector and stronger verification requirements around approved schemes, in a fresh signal that letting agents could face tougher compliance tests beyond today’s basic redress and deposit rules.
The point was set out in a parliamentary answer cited on 17 August, where Baroness Taylor of Stevenage said membership of a deposit protection scheme is a trading requirement rather than a broader mark of an agent’s conduct or legitimacy. The government also said a non-statutory code of practice for letting agents is due later this year, with consultation on mandatory qualifications planned for 2027.
For landlords, that matters because many owners assume approved-scheme membership offers a wider quality check on agents than it really does. The latest ministerial wording suggests the government wants tighter verification and clearer standards, but also that the current system still leaves room for fraudulent or poor operators to misuse legitimate badges.
Deposit membership is not a full quality stamp
Baroness Taylor said the department had worked with tenancy deposit protection providers to strengthen safeguards after recent fraud concerns, including warnings on insured deposit protection certificates, stronger tenant communications and a review of verification and due diligence checks.
That is a sharper message than landlords often hear in day-to-day practice. Joining a redress scheme or protecting deposits remains essential, but neither step proves an agent is well run in every other respect. Owners who outsource tenant handling, money flows or compliance admin still need their own due diligence on the business behind the logo.
This follows Landlord Knowledge’s report on Propertymark warning the draft Right to Rent code was too complex for landlords and agents. The latest ministerial comments suggest agent oversight is still moving in one direction only: toward more formal standards, more checks and less tolerance for weak process.
Landlords should not wait for a 2027 consultation
The code of practice is expected later this year, but the compliance signal is already plain. If landlords use a letting agent, this is a good moment to review who protects deposits, how client money is handled, what checks are in place for identity and fraud risk, and whether the agency can explain its processes clearly.
That matters even more with wider rental regulation still bedding in after the Renters’ Rights Act. Agents are often the front line for paperwork, prescribed information, right to rent, communications and deposit administration. A weak agent can therefore create landlord risk long before a formal new licensing or qualification system arrives.
Landlord Knowledge recently reported that digital Right to Rent checks will tighten again from 1 October. Combined with the latest comments on property-agent regulation, the picture is of a sector where landlords should expect more verification, not less.
Government guidance for agents and landlords already makes clear that only approved tenancy deposit schemes can be used. The wider home buying and selling reform roadmap also confirms plans for a code of practice and consultation on mandatory qualifications. The next question is whether ministers turn today’s warnings into firmer conduct rules, a code with sharper expectations, or eventually a more formal qualification regime.
What this means for landlords
- If you use an agent: check their redress, deposit and client-money arrangements, but do not treat scheme membership as a full trust mark.
- If you are appointing a new agent: ask detailed questions on verification, fraud controls and who handles prescribed information.
- Watch for: the letting-agent code of practice later this year and a 2027 consultation on mandatory qualifications.
- Bottom line: ministers are signalling that the approved-scheme model may not be enough on its own.
Editor’s view
Landlords sometimes borrow reassurance from the schemes their agents belong to. This answer is a useful reminder that a badge is not the same as a full compliance culture, and owners who outsource still carry the commercial pain when things go wrong.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 August 2026
Sources: UK Parliament, MHCLG
Related reading: Propertymark warns draft Right to Rent code is too complex for landlords
