Conveyancers have warned estate agents that the recent material information regulation changes do not mean that their responsibilities can now be ‘ditched’.

The comments have been made by the Conveyancing Association co-chair Beth Rudolph, who has also called for the Competition and Markets Authority (CMA) to take ‘stronger enforcement’ against agents so they “realise material information remains a priority”.

Her comments were made at an industry roundtable that discussed the recent transfer of material information regulation, which is now covered by the Digital Markets, Competition and Consumers Act 2024, having previously been regulated via the Consumer Protection from Unfair Trading Regulations 2008.

Rudolph says she has been frustrated by coverage of the change, some of which implied that material information rules have been ‘ditched’, saying that the underlying requirements on agents have not changed.

“But they need interpreting now without the specific property-related guidance,” she says.

The CMA has far greater enforcement powers than National Trading Standards

“At the same time, the CMA has far greater enforcement powers than National Trading Standards.

“What we hope is that, if CMA does not, the industry will come together to produce an update on that guidance,” she said – but fundamentally the content would not be different to what came before.

Visible enforcement

Sally Holdway, director of technology consultancy Teal Legal and co-founder of the Home Owner’s Passport, says: “The rules are absolutely there in the DMCC. It is very clear what you must adhere to, but the challenge we have is the lack of visible enforcement, or clear guidelines.”

The roundtable agreed that a couple of hefty fines from the CMA is needed to focus minds.
Rudolf adds: “The moment we see the big fines coming down, the agents are on board.

“I’m confident the CMA will start by asking for undertakings from agents to comply and, if they do not comply, then they will be fined. That’s what they did with the new-build developers and the mis-selling of leasehold properties.”

Big fines

Stephen Ward, director of strategy and external relations at the CLC, says: “We need some real unity there so that all the organisations involved and driving this transformation are truly working in concert.

“We need a coordinated campaign to ensure that the people who are delivering this on the ground, whether it is the estate agents, the conveyancers, the mortgage brokers, or the staff at the lenders, understand the benefits of this change for them and their clients and are confident about what they can do.”