The decision by National Trading Standards to withdraw Material Information guidance, designed and implemented to help support sales and letting agents meet their legal obligations under the Unfair Trading Regulations 2008, has been deemed ‘regrettable and a backward step’.
Initially introduced in late 2023, the guidance was introduced in phases to help bring standardisation within the sector and assist consumers in making more informed decisions by delivering unified base information regarding properties.
However, all parts of the current Material Information guidance were withdrawn last week due to the new Digital Markets, Competition and Consumers Act 2024 replacing and superseding the initial legislation for which the guidance was based upon.
National Trading Standards says it is currently in the process of removing all details regarding Material Information guidance from their communications channels. But the Council for Licensed Conveyancers believes that this is a mistake.
Sheila Kumar, chief executive of the Council for Licensed Conveyancers, commented: “The withdrawal of the material information guidance for estate agents at this stage is regrettable and a backward step in the provision of information to guide potential home buyers in their choice.
“Until such time as the CMA or a future regulator of estate agents issues rules or guidance, we hope that the sector will continue its progress so far in adopting the approach set by NTS.
“Perhaps the Home Buying and Selling Council and the Digital Property Market Steering Group could take action here, because more timely and accurate information is vital to delivering faster and more certain transactions that meet the needs of home buyers better.”
RICS says NTS decision to withdraw guidance creates ‘uncertainty’ for estates agents
This is only an issue for the less professional end of the market.
There’s been too much good work done, by too many of the best people in the industry, for it to be wasted. Material Information was never the end — it was the start of something better.
Emma Cooke and James Munro’s guidance wasn’t written for the agents already doing the job properly — it was designed to help the strugglers find their footing on compliance. The only ones who weren’t complying were the ones who didn’t want to.
The Connells LMS work isn’t going to be set aside just because the regulator is off duty. Connells, Countrywide — they’ll keep doing what they’ve already been doing. Because, just like the trial we ran with Ryder & Dutton in 2020–22, the benefits of what Material Information was leading to are simply too good to ignore.
This was never about box-ticking. It was about faster, more certain transactions.
And that doesn’t stop just because some conveyancers — and a few dominant service suppliers — didn’t want to change.
The real risk now is that sales will fall through.
Because the law hasn’t changed — and savvy consumers who feel misled will use the CPRs to seek redress, demand remedy, and in some cases, demand compo.
As far as I can see, NTSELAT has broken down. The wheels have come off.
It’s caused some slowing of the traffic — but now the dust has settled, and for those who know where we’re headed, the road ahead is clear.
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I’ve spent the last 5 weeks researching the implications of the CMA’s guidance (issued on 4th April) and interpreting what it means for sales and letting agents. In short:
What constitutes a material information report, e.g. the definition of what needs to be included within parts A, B and C hasn’t changed – because no updated guidance has as yet been issued by the CMA. Therefore, until such times the CMA do issue updated guidance, logically the definitions provided by NTSELAT for parts A, B and C for residential sales and lettings stand in terms of helping agents to demonstrate ‘reasonable steps’ for regulatory defence.
The CMA’s guidance does, however, very clearly define what an ‘invitation to purchase’ is and defines what an ‘average audience’ is. This is where there is now more risk for agents who don’t apply this correctly. An ‘invitation to purchase’ is the first point of contact that a consumer has with a property, e.g. a social media post, email campaign, postal (DM) campaign, advert (digital or physical) or even a poster. The CMAs guidance is clear is this respect; the material information required by that consumer to decide if that property may meet with their requirements and therefore, call the agent to speak to enquire about that property, book a viewing or even click through to a website must be provided on every ‘invitation to purchase’ on a ‘one click’ basis, e.g. one click to the material information report in a digital environment, or a QR code on physical collateral.
Breach of material information is potentially a criminal offence, with fines up to £300,000 or 10% of global turnover.
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^^^^^^^^^^
What was I saying about the best people in the industry having been working on this?
They won’t be taking no for an answer — and rightly so.
Trust me: when people like Louisa are on it, resistance is futile.
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Very kind Robert, thank you!
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I’m sorry, but I don’t understand all the fuss. The CPR legislation has been repealed, and the DMCCA has come into force.
The provisions for Material Information have not disappeared. They are included in the DMCCA. Agents must continue to confirm and disclose important material information as previously laid out by NTSELAT.
It seems to me NTSELAT has had a bit of a strop in withdrawing the guidance. Don’t they just need to get the Tippex out (there’s one for the kids) and replace reference to CPRs with DMCCA?
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NTSEAT’s guidance on material information was simply their interpretation of the CPRs – it went untested.
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