Consumers Need More Protection In Estate Agent Market

9.22.00pm GMT Tue 23rd Mar 2004

Commenting on the today's OFT report which recommends more price competition and improved self-regulation among estate agents, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "Buying or selling a property is the biggest single undertaking most people will make in their lives."

"I'm sure anyone who has ever dealt with an estate agent would be horrified to learn the industry is largely unregulated."

"It's a frightening thought that £118 billion worth of property transactions are dealt with by estate agents who have not signed up to the Ombudsman's code of practice. "This is leaving thousands of people with no hope of redress, bar an expensive trip to the civil courts if they are ripped off."

"The industry itself needs to ensure there is a readily accessible body with appropriate powers that all consumers can turn to if they have a complaint."

ENDS

Notes

The OFT report calls for vigorous price competition and changes to the Estate Agents Act to enable more effective enforcement of consumer protection legislation addition. The report also urges the industry to raise standards of customer service through better and more widespread self-regulation. Around 1.45 million property transactions took place that year, with an estimated value of £185 billion. More than nine out of ten people buying and selling a home in England and Wales use an estate agent. Only one of the voluntary codes of practices in the estate agency sector has achieved Stage One status under the Consumer Codes Approval Scheme - the code of the Ombudsman for Estate Agents Company Limited. This scheme currently covers only 36 per cent of agents.