Estate Agents Must Be Licensed

1.03.24pm BST (GMT +0100) Fri 7th May 2004

Commenting on criticism of the Royal Institute of Chartered Surveyors' (RICS) guide, which sets out procedures for the estate agency industry, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "The RICS code simply does not address the fundamental problem.

"We need a compulsory licensing system, run by the industry, which imposes minimum standards and training requirements for estate agents.

"This is what the OFT should have introduced in March, after spending two years investigating the problem.

"Unfortunately, the OFT came up with an empty solution which did nothing to address the fact that anyone can set up as an estate agent.

"£118 billion worth of property transactions are still being dealt with each year by estate agents who have not signed up to a code of practice.

"My advice to the anyone looking to sell their home or buying for the first time is - look for a sticker on the door.

"If the estate agent is not a member of the Ombudsman, think very carefully about who you are letting handle the biggest investment you will ever make.

"If the Government isn't going to provide protection, you need to do it yourself."

ENDS

Notes

The Royal Institute of Chartered Surveyors published a guide which sets out the procedures, knowledge and conduct which all estate agents should follow.

The guide advises estate agents working in the residential, rural and commercial fields how to conduct their day-to-day business and offers guidance on how to follow best practice. It also details a strict code of conduct, The Residential Estate Agency Practice Statement, which all chartered surveyor estate agents must adhere to.

Around 1.45 million property transactions took place in 2002, 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. The OFT report published 23rd March 2004 called for price competition and changes to the Estate Agents Act.

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.