In response to the announcement estate, lettings and property management agents are to be regulated “as soon as possible,” property market commentators have shared their thoughts and reaction.
Sheila Kumar, chief executive at the Council for Licensed Conveyancers (CLC):
“Setting and maintaining high standards for estate agents and managing agents is a vital element of reform of home buying and selling that is badly needed so that the housing market works better for buyers and sellers and for the wider economy. The CLC urges the government to act very quickly to regulate property agents now.”
Beth Rudolf, Director of Delivery at The Conveyancing Association:
“The Conveyancing Association very much welcomes the Government’s commitment to regulating property agents. Estate agents are a key part of the home moving process but, unlike many of the other professionals involved, they have not previously been subject to the same form of professional regulation. That becomes even more important as the Government introduces its home buying and selling reforms and places greater focus on material information being provided upfront. We have been calling for regulation through our work with the All-Party Parliamentary Group for Commonhold and Leasehold Reform and Parliamentary Select Committees, and an independent regulator should also mean the cost of enforcement sits with regulated members rather than the public purse. Crucially, it should help ensure agents are properly educated, qualified and kept up to date with the considerable amount of new legislation affecting the sector.
“We are also pleased to see the regulator’s role extending to the administrative costs and timescales for providing LPE1 and FME1 information, with the aim of ensuring this is supplied for a reasonable fee and within a reasonable period. Our own data shows it takes an average of 54 days from payment to obtain this information, which is clearly far too long when we are trying to create a quicker and more certain home moving process. We would like the same approach to cover the Commonhold Property Enquiries form, the CPE1, which we are currently working on with the wider industry working group. Effective regulation, combined with clear standards around material information and the information required to progress a transaction, can play a major part in making the Government’s wider reforms work in practice.”
Rob Hailstone, CEO at Bold Legal Group:
“This has to be good, long-awaited news. However, if regulation and licensing are coming, it would also be a good opportunity to take a proper look at referral fees.
“And whilst a full ban is unlikely, there needs to be much greater transparency about what agents are paid for referrals and, arguably, some consideration of whether an agent should be recommending a law firm to a client if it is not a firm they would be prepared to use themselves, particularly where a substantial referral payment is involved. The hypocrisy of that approach is difficult to justify.”
Scott Goldstein, Property Disputes Partner at Payne Hicks Beach:
“The Government’s reforms of the leasehold sector continue at breathtaking pace. All parties should welcome the proposals to independently regulate and license managing agents. Similar proposals have been considered before, and they are overdue.
“Tenants benefit from being able to rely on a competent managing agent, who can be a professional point of contact to deal with maintaining and administering the property. However, these new proposals will also oblige managing agents to ensure landlords understand their own enhanced regulatory obligations, and (just as importantly) should give landlords some form of redress if they fail to do so.”
Nathan Emerson, CEO of Propertymark:
“Propertymark has long campaigned for action in this area and welcomes the UK Government’s commitment to stronger regulation of property agents. Professional property agents are increasingly being undercut by unqualified and inexperienced operators who are not held to the same professional standards. This is unfair to responsible businesses that invest in qualifications, training and compliance, and leaves consumers exposed to poor practice without adequate protection.
“Building on the professional standards, structures and good practice already established across the sector will be critical to making this a success and ensuring the new regime is understood, enforced and adhered to consistently.
“Propertymark looks forward to working constructively with the UK Government to ensure regulation delivers higher standards, effective enforcement and a genuinely professional property sector.”
Jason Charles, Head of Education at Rightmove:
“We support the government’s commitment to formal regulation in the property industry, which is something many agents have been getting ahead of through official education for their teams. We first made official qualifications available for agents back in 2022, and over the past year demand has surged by 128%.
“Rightmove research shows seven in 10 home-movers would prefer to work with a qualified agent, while over 70% of renters and homeowners believe agents should hold formal qualifications. Agents play a critical role in helping people navigate one of life’s biggest decisions, and clear standards, qualifications and effective regulation can help improve consumer confidence. We look forward to working with the government on the proposals.”
