Property professionals have backed government plans to regulate estate, letting and managing agents. However, concerns are emerging over costs and enforcement.
The government confirmed plans for independent regulation of property agents yesterday.
Agents would need a licence and appropriate qualifications to operate.
An independent regulator would set professional standards. It could also withdraw licences when agents fail to meet them.
The announcement forms part of wider leasehold reforms. Ministers also plan to tackle some permission and administration charges.
‘Professional agents have nothing to fear’
Nathan Emerson, CEO of Propertymark, welcomed the move.
He said: “Propertymark has long campaigned for action in this area and welcomes the UK Government’s commitment to stronger regulation of property agents.”
Propertymark argues that unqualified operators can undercut firms that invest in training, qualifications and compliance.
Isobel Thomson, chief executive of safeagent, said professional agents had little to fear.
She said: “Professional agents, and certainly safeagent firms, have nothing to fear from the introduction of regulation.
“They already comply with existing legislation, adhere to professional standards and always place the consumer at the heart of what they do.”
Tim Hyatt, head of residential at Knight Frank, also backed regulation.
He said: “Stronger regulation of estate agents is the right way forward.
“Greater transparency around fees, services and the way agents operate should be at the heart of the industry.”
How will another regulator work?
Property lawyer David Smith of Bishop & Sewell questioned how the new regime would work alongside existing requirements.
He said: “It fails entirely to address how this is meant to fit in with the existing ombudsman and other local authority schemes.”
Smith also questioned how authorities would enforce the regime. He pointed to what he described as limited policing of existing Client Money Protection and ombudsman requirements.
Costs also concern Smith. He questioned how the sector would absorb further regulatory expenses alongside existing and forthcoming requirements.
‘Sector has been here before’
Sean Hooker, head of redress at Property Redress, welcomed the announcement. However, he noted that previous attempts at regulation had stalled.
He said: “This issue has never been particularly controversial within the sector, with industry leaders consistently calling for tighter regulation, mandatory qualifications and effective enforcement.”
Hooker pointed to the previous Regulation of Property Agents (RoPA) working group. He said successive governments had failed to put its proposals onto the statute book.
Sheila Kumar, chief executive at the Council for Licensed Conveyancers, called for rapid action.
She said: “The CLC urges the government to act very quickly to regulate property agents now.”
Conveyancers target transaction delays
The Conveyancing Association also welcomed property agent regulation.
Beth Rudolf, director of delivery, said estate agents play a central role in home moves. She argued that regulation would bring them closer to the professional framework covering other parts of the transaction.
Rudolf also welcomed plans covering LPE1 and FME1 information.
Conveyancing Association data puts the average wait at 54 days from payment.
Veteran agent backs crackdown
Veteran estate agent Trevor Abrahmsohn backed action against excessive leasehold charges.
He said: “Her comments today at the Labour Annual Conference about a crackdown on ‘cowboy property agents’ and hidden fees, are spot on!
“Leaseholders and their managing agents do ‘take the micky’ on occasion by charging £250 for a licence to keep a pet and £400 to change the front door, which is totally unacceptable.
“I am not saying that these ‘rip-off’ merchants’ are abundant, so I wouldn’t call it an epidemic, but where it does exist, it should be stopped and as a veteran estate agent of 52 years standing, I lend my complete support to this.”
This version removes several passive constructions and some of the longest sentences, so it should improve both Yoast scores simultaneously.
Comments (2)
And dare i say, what about the DIY landlords? What form of licence / qualification will they need? How will they be monitored? Or is that another government oversight?
Surely the wannabe official estate agent governing body can smell the money all Landlords will be licensed after they’ve had a word with Rayner.