Estate agents
The Department for Business, Innovation and Skills is responsible for the regulation of estate agents when buying and selling property ("estate agency work"). Policy responsibility for letting agents in England and Wales lies with the Department for Communities and Local Government.
The Department for Business, Innovation and Skills is responsible for the regulation of estate agents when buying and selling property ("estate agency work"). Policy responsibility for letting agents in England and Wales lies with the Department for Communities and Local Government.
Estate agents are principally regulated by the Estate Agents Act 1979 and the Property Misdescriptions Act 1991
The Estate Agents Act (OPSI website, PDF), and subsequent Orders, lay down the duties agents owe to clients and to third parties, and gives the Office of Fair Trading (OFT) the power to issue warning or prohibition notices against those persons it considers unfit to carry on estate agency work. Since 1 October 2008 all estate agents in the UK who engage in residential estate agency work have been required to belong to an approved redress scheme dealing with complaints about the buying and selling of residential property.
The Property Misdescriptions Act 1991 (OPSI website, PDF) makes it an offence for estate agents or property developers to make false or misleading statements in the course of business about property offered for sale. The type of matters covered by regulations include location or address; aspect, view or outlook; measurements and sizes; and physical or structural changes.
Guidance on the Property Misdescriptions Act 1991 and the Property Misdescriptions (Specified Matters) Order 1992 (PDF, 111KB)
Both Acts are enforced by local Trading Standards departments and the Office of Fair Trading (OFT).
Future legislative changes
BIS has consulted on repealing the Property Misdescriptions Act 1991 (PMA). The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) provide similar protections for consumers. The consultation considered whether the Government should repeal the PMA, now that the CPRs are in place. The consultation closed on 5 April 2011. We are currently considering the responses to the consultation.
Home buying and selling market study report
The OFT published a report on home buying and selling in the UK, including the role of estate agents, on 18 February 2010. The report makes a number of recommendations to improve the home buying process. The Government has now published its response (see link below) to the OFT’s recommendations.
