The property sector faces significant disruption as Material Information guidance has been withdrawn with immediate effect.

National Trading Standards Estate and Letting Agency Team (NTSELAT), which spent several years developing the rules on material information for property listings, is now reportedly rapidly removing all related details from their communications channels.

A note on Trading Standards’ previously dedicated webpage says: “The development of guidance on material information was based on supporting estate and letting agents to meet their legal obligations under Consumer Protection from Unfair Trading Regulations 2008.

“These regulations have since been superseded and replaced by the new Digital Markets, Competition and Consumers Act 2024. In light of this, the guidance on material information for estate agents and letting agents has been withdrawn.”

It is essential that all agents are aware of this crucial announcement and how it fundamentally affects their business and operations.”

Nathan Emerson, CEO of Propertymark, says: “It is essential that all agents are aware of this crucial announcement and how it fundamentally affects their business and operations.

“While it’s right to consider there will always be progression within the sector, there has been much time invested in ensuring compliance across the industry regarding Material Information, for it to become superseded by new legislation in less than two years and with limited sector guidance for both consumers and practitioners to rely on, this could cause considerable confusion.”

The Material Information guidance, which was initially introduced in late 2023 and implemented in phases, was designed to help sales and letting agents meet their legal obligations. It covered issues such as displaying the tenure, price and property characteristics, including flood risks and broadband speed, aiming to bring standardisation within the market.

Substantial penalties for breaches

Despite the withdrawal of the guidance, the duty to provide Material Information remains, with potentially higher risks for non-compliance under the new legislation and the Competition and Markets Authority is expected to impose substantial penalties for any breaches.

Estate agents must now comply with legal requirements in the DMCC Act, which demands that traders behave fairly and diligently in dealings with consumers. A trader might breach these requirements, for example, by failing to provide key information which is material to a decision on a property, acting unfairly, misleading, or behaving aggressively towards consumers.

Agents will need guidance to help them understand what is and what is not material information.”

Interim Property Ombudsman at TPOS, Lesley Horton comments, “Whilst the guidance has been withdrawn, we champion the principle of giving consumers and agents support in understanding what material information should be disclosed upfront.

“Our enquiry and casework data tells us that agents will need guidance to help them understand what is and what is not material information. We remain committed to working with National Trading Standard and industry stakeholder in this respect.

“In the interim, our experienced decision makers will continue to make fair and reasonable decisions on a case-by-case basis using our Codes as the standard of professional agency practice”

Concerning

Paul Offley, compliance officer at The Guild of Property Professionals, says: “The Guild has consistently championed initiatives that enhance transparency and consumer protection. The phased rollout of Material Information guidance was a significant step in that direction, and our members invested considerable time and resources to adapt their processes and ensure compliance.

“We understood this to be a progressive journey towards greater clarity for everyone involved in property transactions.”

He adds: “It is therefore concerning that this established guidance has been withdrawn so abruptly, less than two years into its implementation.

“While we recognise that legislation evolves, the speed of this change, with the DMCC Act now taking precedence, has the potential to cause considerable confusion for both practitioners and consumers, especially given the current lack of sector-specific guidance for the new Act.”

“It is essential that all agents are firstly aware of this crucial announcement and how it fundamentally impacts their business and operations. The industry had largely embraced the structured approach of the Material Information guidance.

“To have it superseded so quickly without clear, readily available, property-specific guidance under the DMCC Act is a challenge. We urge the relevant authorities to provide this clarity swiftly to ensure agents can confidently meet their obligations and consumers remain well-informed.”

Sheila Kumar, CEO of the Council for Licensed Conveyancers (CLC) said, “The withdrawal of the material information guidance for estate agents at this stage is regrettable and a backward step in the provision of information to guide potential home buyers in their choice.

“Until such time as the CMA or a future regulator of estate agents issues rules or guidance, we hope that the sector will continue its progress so far in adopting the approach set by NTS. Perhaps the Home Buying and Selling Council and the Digital Property Market Steering Group could take action here, because more timely and accurate information is vital to delivering faster and more certain transactions that meet the needs of home buyers better.”

The Competition and Markets Authority has published general guidance on unfair commercial practices and what businesses need to know about unfair commercial practices, but the industry needs more sector-specific guidance to help navigate these new requirements.

The Competition and Markets Authority has published the following guidance:

General guidance on Unfair Commercial Practices

What businesses need to know about unfair commercial practices

Guidance on the CMAs approach to consumer protection