Housing minister Brandon Lewis rules out regulation of agents

Some 200 delegates packed yesterday’s NAEA London Forum at the Lancaster Hotel, just over the road from Hyde Park.

The day’s programme of speakers began with a welcome from NAEA president Simon Gerrard. Warming up for the introduction of the keynote speaker, housing minister Brandon Lewis, Gerrard made a plea for “the politics to be taken out of housing”. It was a plea that fell on stony ground.

Lewis was quick to say that it was unlikely that politics could ever be taken out of housing as “planning is the most important thing that a local authority does”.

The minister’s speech majored on the highs and lows of the housing market since the present administration came to power in 2010 and the track record of the government in stimulating house builder and buyer activity through schemes such as Help to Buy.

There was clear recognition of the importance of the private rented sector, and the Government is supporting development of rental property with a £7bn guarantee scheme.

In response to a question from the floor about the desire in some quarters to see statutory regulation of the sales and letting industry, the minister dashed all hopes. “How would we enforce it?” was his rhetorical question and he went on to say that it is better to educate the consumer towards using professional and reputable firms than in increasing regulation.

There were murmurs of agreement when Lewis said: “You are encouraging politicians to regulate and you should be careful of what you wish for.”

It was fitting that the minister was followed by James Munro, who is team leader of the National Trading Standards Estate Agency Team – which regulates estate agency work in the UK as well as the approval and review of consumer redress schemes.

Munro’s presentation covered the work of the team and there was an emphasis on their willingness to engage with the industry and to assist with information and guidance on relevant legislation.

However, in the matter of Consumer Protection Regulations it was clear that not even the Trading Standards team is yet up to speed and Munro said that they are in the process of redrafting a previous version of the old Office of Fair Trading guidances. With a wry smile he also declined to give any definitive answer to his own question as to whether an agent should disclose a previous unsatisfactory survey to a new purchaser.

A delegate’s eloquent plea for rogue agents’ non-compliance with such things as the provision of EPC information, and for tougher enforcement of regulations, brought a refreshingly open response from Munro.

He said: “I’d like to give you a promise … If you are aware of an individual or business that is not complying, refer it to us and I give you my assurance it will get dealt with.”

Other speakers included: Peter Robinson of AIPP on gaining commissions from the sale of foreign property; Sam Ashdown of Home Truths imparting information on how to take photographs to wow buyers and delight vendors; Jeremy Tapp of Homeflow on what and what not to do about SEO for agents’ websites; and business guru Geoff Burch.

Ian Springett of Agents’ Mutual/OnTheMarket gave an update on the progress of the portal and illustrated how the delivery has been on target with what had been promised.

Stressing that uncommitted agents should now “get on board”, Springett said the target for 2015 is to achieve 8,000 offices listing on the portal and if that is achieved it will provide a £30m per annum revenue that will enable OTM to be “a viable alternative to the market leader”.

“We are not going away,” said Springett. “We will get you back control of your data and costs. In fact, your industry.”

Final speaker of the day was Grainne Gilmore, head of UK residential research at Knight Frank. Her fact-filled presentation highlighted the geographic spread of price movements across the country, emphasising that even different types of property in one area will show substantial differences and variations in prices.

The residential market is underpinned by an excess of demand over supply – with little expectation of major increases in present levels of house building, rising economic confidence, historically low interest rates, and wages growth. Overall the outlook is positive with a cumulative 18% increase in prices expected in the UK as a whole over the next five years.

Asked by Eye to sum up the day, Simon Gerrard said he considered it to have been “a smorgasbord of interest” for the delegates and that the feedback had been excellent.

Mark Hayward, NAEA managing director, was “thrilled at the attendance, the passion in the room, and the quality of the speakers”.

P.S. Your correspondent was very pleasantly surprised by the quantity and warmth of conversational comments about Eye from delegates and exhibitors. A substantial proportion receive our daily newsletter and consider it an essential read at the start of their day.

It is gratifying to hear that Eye is being seen and appreciated so widely.

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3 Comments

  1. Robert May

    “We will get you back control of your data and costs. In fact, your industry.”  A good start would be to remove the comparables data from Zoopla. Nothing helps passive intermediaries, FSBO internet uploaders and central office online agencies compete on a local  level more than  a detailed, albeit  behind the curve, insight into local values. With comparable evidence removed from your own site how about getting a grip on the data flow that is powering the flawed valuation algorithms that again are powering amateur advice on value?

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  2. Trevor Mealham

    Around £30-35m has gone into prop tech in the last 6-8 months. Most away from NAEA’s domain. Unfortunately in a room full of agents there will be a small fraction who are techies, whilst in a room full of tech’s there will be very, very few agents.

    New property sales and lettings and prop related online services and models are happening and sadly agents and techs are not talking to row in the same direction.

    But for sure we need better education of legislation and be it agents or techies that run unlawful models, we need the bad guys better policed.

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  3. smile please

    A good round up, thank you for posting.

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