Background to Inventories in the UK
Currently, almost 2 million residential properties involve a change of tenant each year, producing a huge requirement for professional Inventory advice. What makes the situation uncertain and risky for landlords and tenants alike is that the quality and service standards within the current industry are variable.
Until now, because the current industry is self-regulated, there have been no national benchmark standards against which Inventory Clerks must operate. There are no minimum qualifications or training requirements and there is no nationally agreed product format.
Under sweeping changes, the Licensed inventory Provider Scheme has introduced a new, clearer, faster and easier way for landlords and tenants to obtain a professional Inventory.
Inventory Providers from now on can opt to become certified by an industry-run scheme known as the Licensed inventory Provider Scheme (or LIPS for short). The Inventory provider working under this scheme will be required to pass technical assessments, demonstrate competence against National Indicative Standards and also to show they are "fit and proper". This means they have to submit themselves to a process of highly stringent licensing that checks they have professional indemnity insurance cover for all the Inventory work they carry out, but also have Criminal Record Bureau (CRB) checks. The CRB checks are compulsory.
The whole point of this robust regulatory framework is to give a high degree of confidence to the consumer. After all Inventory Providers visit thousands of homes each year and it's imperative that they are exposed to this level of scrutiny.
Also, throughout their working lives as Inventory Providers they are required to keep up their accreditation, meaning they are routinely audited and the quality of their work is checked by LIPS. They are required to keep their skills and abilities up to date including carrying out lifelong learning (LLL). They are required to have a complaints procedure and submit themselves to dispute resolution processes administered by the Licensing Scheme.
The need for reform of the lettings industry has been repeatedly stated by professional bodies including RICS and ARLA and a review of the sector was initiated by the Government in early 2008.
From 6 April 2007, the Government made it compulsory for those receiving tenancy deposits in England and Wales to join a scheme that safeguards deposits for the duration of a tenancy and offers resolution procedures should disputes arise.
Where there is a dispute about allocation of the deposit at the end of the tenancy that cannot be resolved between the parties, the scheme refers the dispute to its dispute resolution service. An independent adjudicator examines the facts and determines how the deposit should be allocated. An inventory and record of the condition of the fabric of the building at the beginning and end of a tenancy are central to this process.
