RLA : RPI : Legislation to blame, not estate agents

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other artilces from the August / September 2002 issue

Legislation to blame, not estate agents - August / September 2002

Following the Office of Fair Trading's announcement of an inquiry into estate agents, Hamptons International is calling for definitive legislation to address the negative aspects permeating the profession.

Welcoming the announcement, Hamptons' managing director Jeremy Priestley (right) believes that the problem lies at the door of the Government and the legislative framework surrounding property transactions in England.

'Hamptons has been an active supporter of the Ombudsman of Estate Agents in its efforts to clean up any stain on the industry. However, self-regulation is no longer a solution and until Parliament passes clear legislation on initiatives such as the Sellers' Pack, abuses will inevitably continue. We should like to see this addressed once and for all'.

Two important areas that the OFT will investigate are 'gazumping' and fees. The Director General of Fair Trading, John Vickers, points out that gazumping is rare in Scotland.

Industry expert David Perkins points out that this is due to legislation.

'The Law Society of Scotland has a practice rule against gazumping which says that when a client has accepted an offer his or her solicitor may not consider another one'.

Perkins, who helped to draft the original regulations, points out that this law would directly contradict the Estate Agents (Undesirable Practices) Order 1991 that states that an estate agent must submit all offers impartially and in writing whenever they arise.

'The Director General says he wants to stop gazumping but at the same time he wants to ensure that estate agents comply with their statutory obligations. He must make up his mind'.

Complaints against estate agents rose by a quarter during 2001 to more than 5,000, according to the Ombudsman. In addition, almost 5,000 complaints were made to Trading Standards Offices, mostly related to selling techniques.

Priestley believes these figures should be kept in perspective. 'In the early 1980s the National Association of Estate Agents received around 7,000 complaints annually on 750,000 property transactions. Today there are 10,000 complaints but on twice as many transactions about half a percent'.

On the issue of estate agents' fees, Hamptons recently completed a survey of buyers, sellers, landlords and tenants, in which two thirds of the respondents rate estate agents fees as 'average', with only a quarter rating them as 'poor' value. Nearly one in ten actually consider them to be 'good' value.

The Hamptons survey also reveals that more than nine out of ten customers think that estate agents should hold a professional qualification.

'Improving the quality and professionalism of the people working within the industry can only advance the levels of service to customers', comments Priestley.

other artilces from the August / September 2002 issue

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