A recent Office of Fair Trading Report has found that satisfaction with estate agents has improved.
After undertaking a year long study of estate agency, The Office of Fair Trading (OFT) has found that the industry is in reasonably good shape as a whole.
Although, the study reported that a third of sellers were unhappy with their agents' fees, overall most buyers and sellers were satisfied with their estate agent's service.
The National Asscociation of Estate Agent's (NAEA) of which Northfields is a member, has criticised the report for failing to suggest "robust" protection for buyers and sellers. Peter Bolton King, Chief Executive of the NAEA has said that "The NAEA would like to see a greater level of regulation to ensure that professional, qualified estate agents are not confused with agents that, all too often, fail to meet the basic professional standards we would expect from our members."
The more critical aspects of the OFT's report found that:
• price competition among estate agents is still weak
• existing laws on estate agency make it hard for competitors to use the internet to set up business and drive down prices.
The OFT found there was still little competition between "traditional agents" and the fees they charge to sellers, but pressed the point that it had found no evidence that estate agents colluded locally to keep up their commission rates.
As part of its study the OFT studied internet property sites, price competition between agents, and consumer protection.
"Encouraging new business models, online estate agents and private seller platforms could put useful competitive pressure on traditional models and lead to better value for buyers and sellers," said John Fingleton, chief executive of the OFT.
"The government can help this process by updating legislation and making sure regulation only applies where it is essential to protect consumers."
The OFT said that existing legislation relating to traditional estate agents was "comprehensive and wide-ranging, and that further regulation was unnecessary". A point of view that is in stark contrast to the point of view of the NAEA, "...once again the OFT has categorically failed to see that better regulation of the home buying and selling market is required. Buying a home is often the largest single transaction of a person’s life and it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed." said Peter Bolton King.
“This is in stark contrast to the views of the Department for Communities and Local Government who are proceeding with the full regulation of lettings agents. This inconsistency is very difficult to understand given that the same agents and firms often deal with both sales and lettings."
At the moment anyone can open an estate agency, without any qualifications or permissions. If that estate agent subsequently break the laws about describing a property incorrectly, handling a
client's money, not declaring an interest in a property, or engage in
some other form of dishonesty then they can be banned from trading. It seems unbelievable that someone must first be taken advantage of, before regulatory bodies can become involved.
So how do you ensure that you are amongst the 88% of buyers and sellers in this report who were satisfied with their estate agent's service? Choose an estate agent who is a voluntary member of a regulartory body like the NAEA, the National Approved Lettings Scheme or the Property Ombudsmon. Better yet, choose a member of those regulatory bodies who regularly wins awards industry awards. Let a qualified and regulated agent handle the transaction on your biggest asset - your home. Call Northfields today for your free valuation on 0208 840 6666.




