The Government announced on Sunday (8 April) a series of new measures which aims to drive up standards and bring an end to rogue managing agents. Representatives from across the property sectors have reacted enthusiastically to the new proposals to professionalise the industry and introduce comprehensive reforms to simplify the buying and selling process. Housing Secretary, Sajid Javid MP announced that all estate agents will be required to hold a professional qualification.
With over one million homes bought and sold in England each year, unnecessary delays and complications during the process can cause financial worries and emotional stress to customers. This uncertainty can lead to delayed decisions and contributes to over one-quarter of house sales falling through annually.
Nick Eley, MARLA MNAEA, Partner and Head of Residential Sales & Lettings at Watsons, who commented on the Governments consultation process back in October 2017 says, “Watsons welcomes the news of further regulation. We have long argued that estate agents should be recognised as professionals – this is a great step forward for the industry!”
The consultation process came to a close in December 2017, and new reforms could also require estate agents to be transparent about the fees they receive for referring clients to solicitors, mortgage brokers and surveyors. The scope of the new measures will affect all estate agents operating in England, Scotland and Wales, reflecting the scope of the Estate Agents Act 1979.
Nick Eley added, “Watsons has long been an advocate of the National Association of Estate Agents qualification, which is already held by the majority of the Watsons agency team. It is part of an on-going campaign to see all of our staff qualified. This is especially important when it comes to providing marketing advice on what is essentially most seller’s largest asset.”
Senior Valuer and Manager of our Norwich Branch, Ian Harris MARLA MNAEA, said, “Agents, like Watsons, display the NAEA Propertymark logo to indicate that they choose to adhere to a voluntary code of conduct and professional standards.”
Ian, who is also Regional Executive for East Anglia and a Board Member at NAEA Propertymark, continued, “I’m therefore doubly delighted that what NAEA Propertymark have campaigned for and Watsons have supported, is being recognised as an important step by the Government.”
Consumer Focused Proposals
Other measures, designed to make the house buying and selling process easier, faster and transparent include:
- Encouraging the use of voluntary reservation agreements to help prevent sales falling through and a crack-down on gazumping;
- Setting a realistic timeline for local authority searches, so buyers get the information they need within 10 days;
- Requiring managing agents and freeholders to provide up-to-date information for a set fee and to an agreed timetable, which will end the current situation where leaseholders are at the mercy of freeholders and their agents.
- Strengthening of the National Trading Standards Estate Agency Team, so they can carry out greater enforcement activity, which could mean banning agents who aren’t qualified;
- Guides on ‘How to Buy’ and ‘How to Sell’ will be developed and published to offer consumers better information on the process and better understanding of the questions they should be asking;
- The Government will work with consumer groups and industry to develop a consistent set of performance metrics for conveyancers, so consumers can make an informed choice;
- A working group will be set-up to bring industry and partners, such as HM Land Registry together to look at developing innovative digital solutions to speed up the home buying and selling process;
- The Government will consult on how the industry can be brought up to professional standards, like those in the same trade, such as surveyors, solicitors and conveyancers.
Sajid Javid MP concluded his announcement: “Buying a home is one of the biggest and most important purchases someone will make in their life. But for far too long, buyers and sellers have been trapped in a stressful system full of delays and uncertainty. So, we’re going to put the consumers back in the driving seat. We will require estate agents to hold a qualification so that people are no longer at risk from a minority of ‘rogue agents’ and can trust the process when buying or selling their home.”
