The recent withdrawal of the National Trading Standards’ Material Information (MI) guidance has understandably created some confusion and concern across the property industry.
While the guidance that helped clarify agents’ obligations under the Consumer Protection from Unfair Trading Regulations 2008 has been removed, it is essential for conveyancers, estate agents and other stakeholders to understand the requirement to provide MI has not gone away.
As of 8th May, all MI guidance introduced since 2023 has been withdrawn following the introduction of the new Digital Markets, Competition and Consumers Act 2024 (DMCC Act), which has now replaced the legislation on which the original guidance was based.
The duty for agents and others involved in the property transaction process to provide MI remains. In fact, the legal expectations under the new legislation are stricter, and the potential penalties for non-compliance are significantly higher – up to £300k or 10% of global turnover.
For conveyancers, it is important to be absolutely clear that the fundamentals have not changed.
Title information and searches are still required, the triage of property condition is still essential, and the TA6 form continues to be a key component of the conveyancing process. The MI form, or alternatively the BASPI or Property Information Questionnaire should still be used to gather the information needed to help agents identify what constitutes MI for each property so that it can be accurately and transparently included in marketing materials.
This means any system development work or process updates made in response to the previous guidance are not wasted. Conveyancers can continue using the systems they have in place to gather and share information, ensuring the necessary MI is available from the outset.
This collaboration is more important than ever given the increased emphasis on compliance and consumer protection under the DMCC Act.
While the removal of the MI guidance may appear to be a backwards step, it is not a signal that the requirement to provide this information has been abandoned. Instead, it reflects a shift in legislative footing.
The CMA has issued general guidance that outlines the expectations for fair trading and consumer protection under the new Act. This includes direction on how businesses should behave and what constitutes a breach, such as failing to provide key information that would influence a consumer’s decision, misleading practices, or aggressive conduct.
For conveyancers, the opportunity and benefit remains. As the key professional adviser and conduit between sellers, buyers, and estate agents, where conveyancers are still helping with collecting, verifying and supplying essential information, the improvements to the process are delivered.
In the pilots that CA members have been involved with, they have seen reduced transaction times, reduced fall-through rates and as a result the pilots have become business as usual.
Looking ahead, work continues in this area. Discussions are ongoing within the MI Guidance Steering Group about updating and refining the MI guidance to make it more user-friendly.
In the meantime, there is no need for delay. The BASPI, which is updated annually, can continue to serve as a reliable tool to highlight the information needed. Conveyancers should remain proactive in gathering the relevant MI; it is in the client’s best interest to ensure that information is complete and accurate from the beginning – anecdotally we hear properties with MI advertised on the property portals get offers quicker than those that do not.
The conveyancing sector must not view this moment as a step backwards, but rather as a shift in the regulatory landscape. The tools are still valid, the processes are still relevant, and the legal requirement to provide MI is stronger than ever.
Now is the time to reaffirm best practice, strengthen collaboration, and continue to ensure consumers are fully informed. The responsibility has not gone away, and therefore neither should our commitment to delivering it.
Beth Rudolf is Director of Delivery at the Conveyancing Association (CA)
