The government has accepted the central recommendation of the report, that the law needs to be strengthened so that rogue agents can be dealt with swiftly and effectively. The government has proposed that all agents belong to an industry redress system, subject to a full assessment of its impact on competition and consumers.
Richard Hair, president of the NAEA said: “We fully agree with both the OFT and DTI that consumers deserve a better deal from estate agents which is why NAEA members must adhere to our high standards. The proposals put forward in this report mark a significant step forward for the industry and a brighter future for homebuyers and sellers.”
Andrew Forsey of Andrew Forsey Financial Services also backed the government proposal. He said: “Of course regulation could always be stronger to get rid of the less discernable agents out there, but it is a step in the right direction.”
The Royal Institute of Chartered Surveyors (RICS) criticised the proposal for not going far enough.
“A consumer redress is only half the equation. The government has taken the easy option that will merely serve to lull the consumer into a false sense of security,” said Louis Armstrong, chief executive of RICS
He added: “The real root of the problem is that anyone is able to set themselves up to practice as an estate agent. We need to know the level of consumer dissatisfaction through valid research and find a way to stop people having cause to complain in the first place.”
