Estate agents campaign

Which? is pleased the Government has finally acted to reform the estate agency industry. The Consumers, Estate Agents and Redress Act will require all estate agents to belong to a statutory ombudsman scheme, whether or not they belong to one of the trade bodies, from later in 2008.

Our research in June 2006 showed that over eight in ten people think the government should set up an independent body to deal with complaints about estate agents within the next three years – 43% thought this was urgent and it should be set up in the next 12 months.

We believe it's time for estate agents to be properly regulated

What's the problem?

Buying a new home is likely to be the biggest financial transaction of our lives, and most of us don't do it often enough to know exactly how it should work.

It's not easy to tell if you're being duped by an unscrupulous estate agent, and if you are, there's not always that much you can do about it. The current voluntary redress scheme, the Ombudsman of Estate Agents, estimates it now covers around 70% of estate agents.

What consumers think

Buying or selling a home may be one of the most stressful experiences of our lives, so it’s vital estate agents are good quality. But at the moment the system is not working for consumers because enforcement is weak and redress is inadequate and patchy. 

There is also a widespread lack of consumer confidence in the industry, which is worth over £4 billion and comprises 1.8 million transactions a year. Our research shows that 70% of people think estate agents frequently give misleading information about properties and that they frequently work with property developers to line each others’ pockets.

Less than half think estate agents pass on all offers to vendors or keep them well informed. Less then half were always happy with the service they received, with 14% saying the estate agent incorrectly described the property and 12% saying they put too much pressure on them.

Our campaign: time to 'Move it'

We think it's time that estate agents were properly regulated. They should be licensed by an independent body, and an effective ombudsman scheme is needed, so that when things go wrong, you can get justice without going to court, and dishonest traders can be put out of business.

Following the launch of our Move it campaign in April 2004, the Government agreed to require all estate agents to be a member of an independent redress scheme.

As a result, the Consumers, Estate Agents and Redress Act will make it mandatory for estate agents to belong to a redress scheme from later in 2008, meaning consumers will have a quick and easy way of resolving their complaints.

It's the job of the Office of Fair Trading (OFT) to approve suitable schemes - though we hope they will approve a single scheme to avoid consumer confusion. Which? also hopes that the complaints scheme will be a robust and genuinely independent redress scheme, which will radically improve standards in estate agency for the benefit of consumers.