Estate agents who assumed plans for wider property industry regulation had been kicked into the long grass will get a shock if they read the consultation just out from the Ministry of Housing, Communities and Local Government following its reforms announced yesterday.

Within its ‘Home Buying and Selling Reform’ consultation is a section on ‘professionalising property agents’ which many within the industry will recognise as a partial re-hash of Lord Best’s Regulation of Property Agents (RoPA) report from 2019.

And while the Tories sat on that report for five years before losing power, Labour are clearly committed to regulating estate agents more harshly; several of the proposals within Lord Best’s report appear in the consultation.

While it recognises the ‘pivotal role’ agents play in the market, it goes on to say that ‘too many are failing customers’.

Compared to other property professionals and international norms, the sector is lightly regulated

“Compared to other property professionals and international norms, the sector is lightly regulated,” it adds.

“This contributes to low public trust scores with only 37% of people expressing trust in the profession.

“Low trust, a lack of qualifications, and the absence of minimum professional standards increase the industry’s burdens, creating additional legal and administrative work for conveyancers.”

To tackle this, housing secretary Steve Reed is consulting the property industry on a new mandatory Code of Practice.

“We will explore the most effective delivery options for maximising the impact of the Code but expect that National Trading Standards, the redress schemes, professional bodies and the courts would use it to drive up standards,” the consultation says.

Minimum qualifications are also back on the table and, as set out in the Government’s recent proposals for managing agent; sales and letting agents will have to most likely attain a NVQ level 3 certificate to operate within the industry, delivered by approved bodies like Propertymark and enforced by local councils.

The consultation cites Denmark as the Government’s ‘most admired’ model where agents must attain a minimum qualification before being able to sell or let homes legally, administered by a third party organisation.

What do agents think?

Nathan Emerson, CEO of Propertymark, tells The Neg: “Propertymark keenly welcomes wide-ranging consultation regarding the introduction of regulation and proposed minimum qualification for estate agents in the UK and letting agents in England, as they are not required by law to be licensed or qualified.

“Such aspects have long been the missing link in providing consumers with peace of mind and security.

“Housing fundamentally affects everyone, and in an age where there are ever-increasing complexities and demands on agents to administer, it is welcome news that the UK Government has committed to engaging with stakeholder expertise and insight to enhance standards.

“Creating a new legislative framework that professionalises the sector will bring greater clarity, higher levels of trust, and better efficiency for all involved. Propertymark will work closely with members and fully engage with the UK Government as these important proposals gain momentum and progress to becoming law.”

Read the consultation in full.