My Lords, I thank the noble Baroness for her input on this debate, and I congratulate her on the part she has played in this area. I will go straight to the various questions which the noble Baroness raised. The first question was about raising awareness and agents publicising their fees. We expect scheme membership to be publicised by members, and all three schemes will publish a list of members. We expect the schemes to work with their members to publicise which scheme they have joined. This should be displayed on an agent’s letterhead and perhaps on a sticker in their windows, on their website and so on. As for what happens when an agent fails to display their membership details, all three schemes will publish a list of their members, which will enable the general public to search those lists. Alternatively, someone could contact their local authority, which will be obliged to investigate.
The noble Baroness asked what will prevent an agent being kicked off one scheme and then joining another without the public knowing. All the three approved redress schemes have agreed to work together. They have the power to share information with the appropriate regulatory bodies and with each other to ensure that rogue agents do not play one scheme off against another. Should one of the schemes expel an agent, they must set the conditions for readmittance of that agent and tell the other schemes. An agent must then meet those conditions before they can join any of the schemes. Given that the majority of letting agents provide a good service, with only one-fifth of tenants and 17% of landlords dissatisfied with the service according to a Which? report of November 2012, this will only apply to a few exceptional agents.
The noble Baroness also asked whether tenants would qualify as consumers under the Consumer Rights Bill. I will write to her about that. She also asked whether the third scheme was working with the existing schemes and whether it will use the existing code. The answer to that is, simply, yes. The noble Baroness asked what the reason was for the third scheme. The DCLG will monitor the performance of the schemes through key performance indicators and will undertake a review of the policy in around a year, after the regulations come into force, to ensure its objectives are being met. The schemes were selected as they all met the conditions for approval, including demonstrating that they are independent, fair, effective, transparent and accountable. The first two are existing schemes, as the noble Baroness pointed out, which between them already have 60% of the total 11,560 agencies as members. PRS is a new provider but is very much open for business.
The noble Baroness also asked whether approving a scheme which is run by the same company as one of the tenancy deposit schemes will create a conflict of interest. The PRS met all the conditions for approval, including that it should be independent. It indicated in its bid that it will apply for membership of the Ombudsman Association, which will demonstrate that it embodies the key characteristics of redress schemes, namely effectiveness, fairness, openness and transparency. I hope it will give the noble Baroness comfort that the DCLG will monitor the performance of all the schemes and will have the ability to withdraw approval should a scheme no longer meet the conditions for approval.
I think that addresses all the points that the noble Baroness made. If not, I shall write to her afterwards.