LETTING agents, student representatives and council officers last night warned they fear there is little to stop more rogue agents preying on tenants just like Zulfiqar Hussain.

Oxford Brookes Student Union advice services manager Wendy Dant said: “It is a big issue, and the problem is that we only see the tip of the iceberg.

“We see the Students who are not willing to lie down and take it. But far more do not do anything about it or just accept money will be taken from their deposit.

“We see a lot of students affected by letting agents who either try to not give their deposit back, or do not protect it.”

She added: “Students are signing legally binding contracts and are paying thousands of pounds months in advance, and getting out of it is a big deal.

“We are trying to educate students not to do this, but the rumour mill is always against us.

“The trouble is landlords feel they can do what they like because there are so many students scrambling for housing.

“In this case, the letting agent went under and the money went with them.”

Since 2007, tenants renting property on an assured shorthold tenancy agreements must have their deposits protected by landlords through one of three Government-approved schemes.

In theory, courts can order landlords who do not protect deposits to pay three times as much as a fine, but Mrs Dant said courts regularly failed to impose the stiffest sentences.

Frank Webster, director of Summertown-based Finders Keepers property rental business, warned rogue agents would continue to emerge unless the Government regulated the industry. Unlike employment agencies, people without licences, qualifications or professional examinations can enter the lettings industry, and all accreditation schemes are voluntary.

Mr Webster said: “The rental market is becoming busier and there will be more Zulfiqar Hussains unless something is done about it.

“There is nothing to stop people setting up tomorrow and calling themselves a letting agent, even though there are 250 pieces of legislation we deal with on a daily basis. It’s maddening for us and other legitimate agents to see people not trading properly and setting a bad example.”

Ian Wright, the city council’s health development service manager, said: “Hopefully, this prosecution will send out a strong message that the authorities will not tolerate rogue landlords and agents, and we are trying to clean up the situation in Oxford.

“The city does have a reputation for this, simply because demand is so high for rented property.

“It is almost too easy for the rogues to get away with it.

“There are lot of letting agents who move and disappear, which is why potential tenants should always go for established agents with a good reputation.”

The city council’s Landlord Accreditation Scheme has six letting agents and 14 landlords signed up to it, providing protection for tenants who rent through them.