A consumer survey has found that an overwhelming majority of respondents (94%) back the provision of material information in the home moving process – but a survey of property professionals found almost all (96%) feel unsupported as they try to navigate recent regulatory changes regarding their obligations.
In an iamproperty survey of 350 consumers, 94% said that having all key information up front ‘would significantly improve the home moving experience’. However, the survey of around 300 property professionals carried out by property tech specialists Reapit uncovered uncertainty, confusion and claims that the government ‘has yet to provide enough support for the industry’.
Reapit’s poll was taken during a webinar held to discuss the withdrawal of National Trading Standards Estate and Letting Agency Teams (NTSELAT) guidance for the property industry and its transition to the Competition and Markets Authority under the new Digital Markets, Competition and Consumers (DMCC) Act 2024, which came into effect in April this year.
The Competition and Markets Authority is yet to issue specific industry guidance related to provisions of the new legislation, resulting in the majority of agents who responded to Reapit’s poll (61%) saying they ‘didn’t have a firm grasp of the details’.
Only 24% said they understood the key changes, while 11% weren’t aware of the act at all. Nearly half (46%) said they were still using the guidance from NTSELAT. Only 3.3% of the property professionals surveyed said they felt the government ‘had done enough’, which Reapit says leaves 96.7% feeling uninformed and unsupported.
But Ben Ridgway, iamproperty co-founder, says property professionals should see the changes as an opportunity and a turning point, rather than a setback.
He commented:
“Material information is still the biggest opportunity our sector has had in the past decade. It’s key to building a faster, more secure and better-informed home buying and selling experience. While the recent withdrawal of guidance has created a gap in clarity, the legal obligation remains…”
On the lack of clarity for agents, Beth Rudolf, director of delivery at The Conveyancing Association, said:
“One way or another, new guidance will come, and I believe that it is likely to be rooted in the original NTSELAT framework. That’s because it reflects over three years of work by the NTSELAT Guidance Steering Group, the members of which also make up the Digital Property Market Steering Group and the Home Buying and Selling Council Steering Group, and who had a clear consensus on what information the average consumer needs, to make an informed decision when buying and selling.”
This week, the Law Society said it would pause its work on the material information form it planned to accompany the updated TA6 sixth edition due out in the Autumn.
Speaking at the Bold Legal Conference, Law Society Vice President Mark Evans said the withdrawal of the NTSELAT material information guidance had taken the Law Society and government by surprise, and said work would be paused while the society evaluates its options.
For iamproperty, the ‘strong public backing’ for material information means the industry should continue working towards greater transparency, regardless of regulatory timelines.
“Despite the current lack of guidance, iamproperty’s data shows consumers increasingly expect key information to be available upfront when buying a property”, the company said.
