Enforcement needed to uphold upfront information

At the recent annual roundtable hosted by the Council for Licensed Conveyancers (CLC), industry experts discussed the pressing need for robust enforcement by the Competition and Markets Authority (CMA) to reaffirm the importance of upfront material information (MI) in the property sector. This dialogue followed the withdrawal of MI guidance by the National Trading Standards estate and letting agency team, which had previously been grounded in regulations superseded by the Digital Markets, Competition and Consumers Act 2024 (DMCC). With this change, experts lamented a perception that MI was being sidelined, even as the core obligations for estate agents remained intact.

Beth Rudolf, a notable figure in the industry and director of delivery at the Conveyancing Association, expressed her dismay over media interpretations that suggested a decline in the focus on MI. She stated, "What we hope is that, if CMA does not, the industry will come together to produce an update on that guidance," emphasising that the essential regulations have not shifted but require new interpretation. Industry participants concurred that the CMA’s broader enforcement powers would likely be pivotal in enforcing adherence to MI guidelines.

Sally Holdway of Teal Legal highlighted the clarity of the rules under the DMCC, yet stressed the current challenge posed by a lack of visible enforcement and guidance. She stated, "The rules are absolutely there in the DMCC. It is very clear what you have to adhere to," underscoring a growing concern around the absence of adequate compliance mechanisms. The consensus was that significant fines would serve as a vital catalyst for change in the industry.

Rudolf explained the potential impact of hefty fines, stating, “The moment we see the big fines coming down, the agents are on board." She noted that historical actions by the CMA against new-build developers for mis-selling leasehold properties could serve as a precedent for future enforcement actions. As discussions progressed, there was concern that any momentum built around MI could diminish unless proactive measures were taken. Suggestions included integrating MI considerations into the Law Society’s national conveyancing protocol to bolster its significance within the industry.

Amid these discussions, Epi Pearce from Nationwide Building Society shared advancements such as the new collaboration between Nationwide and Rightmove, which aims to deliver real-time MI regarding mortgage eligibility before property viewings. “That is the biggest step forward that we have had in a while,” she noted, highlighting the importance of evolving practices within the industry.

Stephen Ward from CLC emphasised the need for unity among various organisations to drive meaningful change. He remarked, “We need some real unity there so that all of the organisations involved and driving this transformation are truly working in concert.” This sentiment resonated throughout the roundtable, with an agreement that coordinated efforts are essential to educate all stakeholders about the benefits of adhering to MI practices and ensuring enhanced consumer protection. The discussions also touched on various other pressing issues facing the property sector, signalling a pivotal moment for the ongoing improvement of MI compliance and enforcement in the UK property market.