Labour launches fresh bid to regulate estate agents

Labour has reiterated its commitment to introducing tougher new rules for estate, letting, and property managing agents after the shadow housing minister tabled an amendment to the Leasehold and Freehold Reform Bill to regulate property agents.

Matthew Pennycook proposed the amendment which if approved would result in the enactment of the Regulation of Property Agents Working Group (RoPA) report within 24 months of the Leasehold and Freehold Reform Bill becoming law.

The Leasehold and Freehold Reform Bill was debated at Committee stage on 16 and 18 January 2024 after passing its Second Reading in the House of Commons on 11 December 2023, with calls to regulate estate, lettings and managing agents being debated.

The UK government has stated that a ban on new leasehold houses, the end of marriage value, and a redress scheme for freeholders will be added as the Bill makes its way through parliament.

Additionally, a consultation asking for views on options to halt ground rents for current leaseholders closed earlier this week.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “It is really positive to see an amendment put forward to get the recommendations in Lord Best’s report on the Regulation of Property Agents on the statute book. The Leasehold and Freehold Reform Bill alongside other proposed housing legislation will bring huge change to the way people buy, sell, rent and live in property.

“However, currently there no minimum standards to work in the property sector and there are no statutory rules to ensure those buying, selling and managing property are suitably qualified. This amendment is an opportunity to provide a greater level of protection for consumers and should be widely supported.”

 

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29 Comments

  1. MrManyUnits

    There are larger issues in the property market than this.

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  2. Hit Man

    What a bunch of uneducated cranks!

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  3. Robert_May

    I’d like to offer a perspective that may not align with those who stand to benefit from such regulation. It’s essential to consider what real issues these regulations will address. Our industry is already under the governance of significant case law precedents, which ensure that only professional agents who meet high standards are rewarded.

    There’s a valid concern that these new regulations might primarily serve the interests of the regulators, training providers, and insurance companies, rather than the industry or consumers. In the service industry, often, self-regulation is more effective than external enforcement.

    Take the issue of portaljuggling, for example. This wasn’t rectified by legislation, training, redress schemes, or trade associations. It was the industry’s own response to unprofessionalism that made the difference. Professionals who maintained high standards naturally took the high ground, while those relying on manipulative practices faced consequences.

    In our field, professionalism is the cornerstone of success. Introducing additional, potentially low-impact barriers to entry may only profit those offering the required training or insurance, wrapping the industry in another layer of red tape. If there are specific problems that this legislation aims to solve, I’m open to understanding them. However, without clear evidence of its necessity and effectiveness, I remain skeptical about its benefits.

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    1. Hit Man

      There are no benefits, its being pushed by training companies and association such as PropertyMark etc, Agents are an easy target because we are a business and easy to find, we all strive to be better, competent and professional there are compulsory and necessary professional standard that must be met such as redress schemes, PI and CMP etc yet none of these are required by private landlords.

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      1. jan-byers

        Totally agree.
        Whatever rules/lawsxare in place there will always be agents who cut fees
        Its called competition
        There will always be agents who overvalue to get instructions
        Valuations are a subjective opinion

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    2. simonwilkinson73

      Robert I very much agree, it would be far better for us to Regulate ourselves than simply roll over and take what we are given. We need to take the opportunity now to initiate self-regulation and prevent the Politicians telling us what to do!

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      1. Robert_May

        Currently, the UK estate agency industry is beginning to respond to subtle yet significant commercial pressures. While many professionals might not fully understand the source or nature of this pressure, its impact is increasingly evident. If this trend continues, it could make additional regulation unnecessary.

        Professional estate agents with high street premises and those without are set to gain a competitive edge over passive intermediaries, whether they operate from physical offices or not. This natural market shift, driven by proactive and adaptable estate agents, suggests that further regulatory measures may become redundant in a market that is self-correcting and evolving

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  4. Ric

    I support lifting the standards, but lets be clear – This is more a “We support the opportunity to make more money…”

    If it was just about standards – Then why don’t we hear more policing now.

    Passing an exam doesn’t change behaviour.

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    1. jan-byers

      Agree 100%

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      1. Ric

        Stop it… we never agree… I feel like our relationship has reached a new height. 😉

        Tis true though… where we are today is a prime example of CBA Estate Agency.

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  5. Rob Hailstone

    Self regulation seems to be preferred, fair enough, but how many agents are complying with, or trying to comply with, the new Material Information Guidance?

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    1. Ric

      Me, me me… ****** me…. which is why I think… your inner-self is either CBA or I will do what is right.

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    2. Robert_May

      56% are currently compliant with Part A. mainly because only 21.4% of data feeds to portals let agents comply with feeding the data they have to the portals

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      1. Ableagenttrainer

        Part A is very old news! B & C are very far from being understood.

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        1. Ric

          I disagree. Sorry @Ableagenttrainer (gosh, this is horrible me being all goodie goodie)

          All the info can be sourced, and the webinar made it very clear yesterday by NTSELAT, justify where the info was sourced from / checked etc and assuming that source is one you would expect can be trusted with any extra info helping them understand then pretty simple you are unlikely to fall foul of being fined etc.

          Only my opinion, but 30 minutes extra work and fully compliant with Part A, B & C – if you want to be and at no extra cost.

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          1. Ableagenttrainer

            Totally agree – i think the guidance from Emma and team is very clear – it just hasn’t reached everyone yet is my point.

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            1. Ric

              How any agent has missed this is beyond me.

              Interested to know a solid reason for “I wasn’t aware there had been a significant update to the regulations we must follow”

              Did any of the EYE readers not know? Emma only really confirmed what was a common sense approach.

              Oh wait… that might be it… but what qualification gives someone common sense? Imagine owning that Training Company!

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              1. Ableagenttrainer

                Depends what you mean by agent – remember that training from top down in agency is mixed – business owners may be confident and attended a webinar but have simply sent an email to their team – who don’t really understand it. I’m not sure where you are based but we look after agents nationally and salary levels, skill levels etc vary dramatically. Not all agents are proactively training – I speak to so many agents who say they know they need to, they haven’t done any for a while and need help….! Not to mention the team members who contact us to buy their own training as they boss doesn’t train them and they want to progress. I still occasionally come across PMA comments and in Terms of business so the CPR law a s a whole still isn’t fully understood. Remember I have spoken to agents’ teams for years – it is not a gut feel. Most are really willing and keen but don’t have time or access to the support they need. Hence Able Agent.

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                1. Ric

                  It just staggers me the Business Owners / Directors whomever aren’t nervous about the “what ifs”

                  That said an agent local to me, (North West, Stockport more specifically) still up until last week, quotes the PMA as you say on their write ups. Crackers.

                  Both BRILLIANT and ALARMING you have EA staff members asking for their own training.. Send em my way if they are job hunting in Sunny Stockport they must care, which is a wonderful trait.

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              2. Ableagenttrainer

                Ps Ive just registered Commonsense training for estate agents.com!!!

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                1. Hit Man

                  Beats me how a training company that doesn’t work in real live estate agencies can train people, They may be able to train them to pass exams but that doesn’t mean they are qualified enough to open or work in an Estate or Letting Agency.

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                  1. Ableagenttrainer

                    PROPERTY INDUSTRY EYE TERMS & CONDITIONS #6. Users posting comments on the site may not post direct hyperlinks to other websites and especially may not do so by use of their username. Users may not use comments to promote a service or business.

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                    1. Hit Man

                      Im not doubting the time in the industry experience, its the up to date practical experience, if your not working in office then I would say that someone with no qualifications who is actually working in an agency has more up to date experience, and therefore, no qualification can better that.

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                    2. Ableagenttrainer

                      I understand that but there’s a trade off. Estate agents are not generally experts in training. Talking smaller agencies rather than larger groups with better resources. Even in a large agency trainers are rarely still hands on. There aren’t enough hours in the day to do both well.
                      I love estate agency and miss it but i love training more!

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    3. jan-byers

      How many sols pick up a phone and ring somepone rather than send an email

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  6. Ableagenttrainer

    I’m always curious why certain commentators think training and regulation are a bad thing? Obviously i am a training provider and disagree …! We see hundreds of completely inexperienced people contacting us as they have set up an agency with absolutely zero knowledge. Last week a truck driver called me as he had made steps to set up an agency. The number of agents who have zero skill is absolutely why this is essential. Thankfully that is the minority however most of Able Agents clients have benefitted in business with a more skilled workforce. Depends on the training you choose. …!

    Why anyone would think that a portal should be a qualifications provider is beyond me! Their free training is not free as seen by recent price increases!

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    1. jan-byers

      I trained my own staff
      I have been to many training courses all ofg which state the obvious
      EA is not rocket science
      Qualifictions do not stop dodgy traders look at how many lawers and IFA get struck off every year

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      1. Ableagenttrainer

        We train thousands of people every year and its not always the case. The people who think they know everything tend to be the ones who don’t know what they don’t know. Training should be structured, planned and monitored and suitable for all learning styles.
        I trained my team too as an agent and would have been more effective with a tool like Able Agent.

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  7. Landlordinsider

    I find it curious PropertyMark are pursuing this but seem to have totally forgotten about Rental Reform. Clearly, no money in RRB – but likely to be plenty in this for them.

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