The decision was made following a decision by the Office of Fair Trading (OFT), which told the retailer that it was acting as an estate agent so would need to abide by the relevant regulation.
The OFT contacted Tesco after the launch to ask if it was acting as an estate agent, saying that if an internet property retailer does anything for their clients that is deemed to be more than simply carrying an advertisement, such as a message board for sellers to contact buyers, they are deemed to be doing estate agency work.
The service was launched in July with sellers able to list their homes for a one-off fee of around £200. Customers got a Tesco ‘For Sale’ sign and a listing on the website, and saved money in the absence of an agent’s fee.
Tesco is now planning to launch a full estate agency service with a change in status enabling it to offer personal advice on the sale of customers’ homes and offer access to property portal websites, which accept listings from estate agents but not from private sellers.
Peter Bolton King, chief executive at the National Association of Estate Agents, said: “It was clear that Tesco had no option but to end its online private selling service once the OFT confirmed that it was technically acting as an estate agent. The decision was no surprise.
“We shall wait to see whether Tesco does move into full estate agency. If it does, it will be interesting to see exactly what is being offered and whether it can provide the high quality service that clients deserve.”
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