The regulation of estate agents moves one step closer

Property agent representatives, including the National Trading Standards, The Property Ombudsman, and Propertymark were among those that gave evidence at a House of Lords Industry and Regulators Committee Inquiry yesterday.

It has been to set-up to explore whether a new regulator should be created, as suggested by the report of the Regulation of Property Agents working group in 2019.

Scotland and Wales already have legislation regulating letting agents.  

In a January 2023 report, the Chartered Institute of Housing reported in a survey that they conducted that 87% of letting agents who had completed a qualification said it benefitted their professional capabilities. Some 84% of letting agents surveyed said qualifications had benefitted the sector overall.  

Propertymark has long argued that an efficient regulatory regime would allow consumers to be guarded from detriment, and that there would be more targeted measures to enhance the housing market if a regulatory regime could accumulate high-level data from the sector.  

With so many new laws regulations being imposed on the housing sector, the trade body believes it is vital for agents to have the knowledge and skills to manage property. But without over-arching regulation, there is no way to enforce common standards.  

The head of policy and Campaigns at Propertymark, Timothy Douglas, who yesterday at the inquiry represented agents views on the desire for a code of practice, minimum qualifications, and licensing for estate agents throughout the UK and for letting and managing agents in England, said: “Operating as a property agent is not a straightforward matter, it requires a wide range of skills, the ability to account for substantial flows of funds, and an understanding of complex housing law.”

“The legislative burden on agents and property managers has significantly increased, but the UK Government hasn’t looked at the competency of the people being asked to carry out those roles,” he added. “Consumer protection is vital, and we are at the crossroads now where we have to act.” 

 

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3 Comments

  1. ALOnline

    Bringing in regulation to a market that is already performing to a good standard feels like a costly waste of money. I think that when things go wrong they are always high-profile which makes the issue seem worse than it actually is.

    I genuinely believe that the money would be better spent being invested in TPO. If their rulings were done quickly, efficiently and in a way that punished bad agents (while protecting consumers) then cowboy agents would either fall in line or stop trading all together

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  2. Hit Man

    It appears that a collaboration between National Trading Standards, The Property Ombudsman, and Propertymark aims to gain authority over regulation, potentially enabling them to set fees as they see fit for agents.

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  3. A W

    Is Propertymark giving evidence not a conflict of interest? Don’t they make money from selling courses? Aren’t they trying to position themselves as the “regulator”?

    Nice to see they’re putting their membership fees to good use!

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