Ahead of Propertymark One on 27 June, Russell Quirk, co-founder of Proper PR, who will be hosting two panels at the event, is hoping to generate conversation surrounding the necessity that is licencing ahead of the conference.
Quirk will be hosting two panels, one is sales and the other, lettings where the main thrust of that conversation is going to be about the market.
“I want licencing to come up in these conversations, because I think it’s a very important subject for agents,” he said.
Quirk believes the topic of licencing is highly controversial in England and continues to be heavily avoided.
Many countries around the world have mandatory licensing for estate agents, with England not even near making the list.
Licensing in counties like the US, Australia and most of Europe have a licensing regime, which is a necessity if an agent wishes to practise in their country legally. Before you act as an estate agent and before transactions can take place, you must gain a license.
To gain an estate agency license in these countries, an estate agent must demonstrate an understanding of the law, rules, and regulations of the sector.
An agent must also pass a knowledge test about general good practise and the best practise for consumers right now.
“Once you are licensed, it is a bit like having a driver’s licence, so if you mess up, do something bad or wrong, you are subject to sanction.” Mr Quirk explained.
“We are one of the only countries that doesn’t have licensing and I think it is completely outdated.
We need to be properly regulated as an industry, and counties like America and Australia have already set the standard for how the industry should be operating.
I also think that there should also be an ability to ban people and take licenses away if they have engaged in wrongful practise.”
With estate agents dealing with around one million sales transactions and three million lettings transactions every year, there needs to be more legislation in place to provide oversight on the industry, rather than the ancient legislation still in place.
“We mustn’t forget that we are dealing here, not with just big assets, not just something that is worth a lot of money, but the livelihoods and the financial vulnerability of millions of people,” Mr Quirk said.
“Licensing is an added benefit for consumers, knowing an estate agent is not going to take advantage of them, and their money.”
In a recent survey, Proper PR found that 75% of agents thought that estate agents in England should be licensed, meaning, 25% thought they shouldn’t be licensed.
“I would go as far as to say, agents that do not support the industry being licenced on an individual basis maybe have something to hide,” Quirk said.
“I believe that introducing licensing will raise industry standards. Every agent should have their client’s best interests at heart and be furthering their education and excelling in the best practise for the industry.
“In place of licensing, Propertymark Qualifications are a great example of how as an agent you can further your education and try and keep the industry as regulated as possible without mandatory licensing.”
Just as regulation and qualifications in other sectors don’t prevent fraud and manipulation from happening, it won’t improve this industry.
Character matters more than competence and becoming qualified by someone else’s idea of best practice is irrelevant.
Those that care to be untrustworthy will choose to be even with the diploma.
It’s for the great agencies to drive them out of business.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Your right Chris licensing doesn’t stop fraud and manipulation, you can and never will be able to stop bad apples, it could however mean that anyone entering our industry would have to pass qualifications and do yearly CPD to show that they have a good understanding of not only the process of selling a property but the legislation that is involved too. I can’t understand why anyone would think this is a bad thing? I’m part of some agency social media groups and it’s quiet frankly scary the basic questions that get asked, people saying they are setting up an agency with zero experience and who clearly know nothing, this reflects so poorly on our industry, it makes a mockery of every one of us who takes it very seriously, is diligent and does a damn good job, no wonder we have the reputation we do.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Exactly! There’s shocking lack of knowledge of the basics by some agents out there and those entering the market thinking they can just sell/rent houses after doing some random EA influencer course (no offence to the good ones out there). Some will say it’s barrier to entry as such but it’s a necessary one.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That doe snot need an exam
When I was an agent we sent new staff to a local recommended solicitor who told them abiu the legals
EA is a simple job it is not rocket science
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
putting jan-byers comments aside, I agree with most of the other comments. The larger independent & cooperate EA have no desire for the industry to be regulated as it will mean that won’t be able to employ inexperienced estate agents who last between 6/12 months before moving on to recruitment.
RoPA is a pipedream as other more important issues will engage the government over the next few years, let alone an election and then depending on how that goes, it will all go back to the drawing board.
RoPA or any other regulatory body with any substance, is never going to happen IMHO
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That explains it Jan, how you came to appreciate how easy conveyancing is also:)
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It’s not rocket science Jan-buyers, but it is far from simple. (I would imagine many a Rocket Scientist would make terrible Estate Agents, perhaps there is a saying in the spaceship factory… “it ain’t Estate Agency peeps” I will tweet Elon to find out.
I’m not saying all agents are this, but a competent agent needs to combine knowledge and communication skills whilst being a master at chameleon like behaviour. (Adapting to all manner of folk I mean by that). Forward thinking, organised and patient. None of these are simple attributes.
You may have been so good, it seemed like it was a simple job, but dealing with the public, legislation and relying so heavily on 3rd party information to play your role well is FAR FROM SIMPLE.
Anyhow, good weekend to all…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
where did my comment go!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Rather than introducing licensing for all, may l suggest a five year ban for anyone that is involved in the estate agency industry and has entered into insolvency proceedings!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Licensing?
Pros:
No excuse for poor knowledge requirements
Penalty and to ban trading if licence is lost.
Cons:
Dishonesty is a mind set and qualification’s does not prevent.
Genuine mistakes (its not a perfect world) are punishable and not seen as fairly treated.
Who regulates, councils? who have a habit of adopting personal grievances and non-standard practise and who regulates them?
There are already mountains of laws and codes of conduct which can be used, but aren’t or the situation does not warrant enforcement.
Third parties take advantage to put the knife in with no form of redress for frivolous and false claims.
Setting up and running costs for all concerned is a joke and needs standardising (see the difference with existing licensing schemes around the UK), some arguably are income generating for councils.
Considering all the property transaction throughout the industry The Property Ombudsman figures indicate there isn’t a real problem with dishonesty and arguably were intentional acts.
There is a big difference between qualifications and licence regimes. The latter is like a quango.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Conservatives, Labour & Lib Dems have nothing about this in their housing plans/manifestos. Successive governments for nearly 50 years have shown little to no interest in making our industry a licensed profession. I’m not sure many would be vehemently against this happening- but I cant see that it will.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
As a result of similar changes in New Zealand about 8 years ago the number of agents operating has halved and the average fees has doubled. If that were happen in the UK as a result it would be a very good thing indeed!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register