Estate agents need regulation for reforms

The Council for Licensed Conveyancers (CLC) has expressed strong support for regulating estate agents as part of essential reforms intended to streamline the home buying and selling process. This move comes as the government seeks to address the staggering £400 million spent annually by buyers and sellers on wasted costs, with one in three transactions collapsing. The CLC firmly believes that all participants in the conveyancing process must “have clear accountabilities and responsibilities, adhere to comparable ethical and professional standards, and be subject to comparable regulatory oversight.”

In response to recent government consultations on home buying reform and the inclusion of material information in property listings, the CLC stressed the importance of providing such information upfront, stating it was “of fundamental importance to establishing a faster, smoother, more secure process that delivers greater confidence in the outcome.” They advocate for the mandatory implementation of digital property logbooks with standardised criteria and binding agreements that allow for fair withdrawal, which would contribute to a more efficient real estate market.

However, the CLC disagreed with the suggested ‘charter’ aimed at helping consumers identify high-quality property professional services, noting that several similar schemes are already in place. Collaboration with stakeholders, including the Home Buying and Selling Council (HBSC) and the Digital Property Market Steering Group (DPMSG), is seen as pivotal for the success of these reforms, but the CLC warned that government support is equally crucial.

The CLC stated, “We regret that although the professions involved have it within their power to make the changes needed in the consumer and wider public interest, it might be necessary for government or regulators to require certain changes to ensure progress is made.”

Stephen Ward, the director of strategy and external relations at the CLC, emphasised the urgency of reducing the alarming 30% fall-through rate, saying: “Consumers need certainty much earlier in the process that their sale or purchase will complete, something which the CLC has been working with the HBSC and DPMSG to deliver.” He further welcomed governmental backing for the transformation agenda, expressing hope that their collective efforts will elevate standards, ensuring consumers' interests are safeguarded throughout the home buying and selling journey.