The Competition and Markets Authority is proceeding with an investigation into a suspected estate agents’ cartel.
An update issued on Friday said that the probe, opened in February this year, will continue.
The CMA has given no detail other than to say that between March and September it investigated the possible case, gathered information and reviewed the parties’ responses.
The CMA said that the investigation concerns a suspected infringement of the Competitions Act.
It also said that the case is at an early stage, and that no assumptions should be made.
The next update is due to be issued at the end of next February.
The latest investigation was launched on the basis of information received following a previous investigation in Burnham-on-Sea, Somerset.
That investigation found that a group of six agents had colluded to set fees at 1.5%. The CMA imposed fines totalling £370,084 on five of the six. CJ Hole escaped a fine because it was the first to confess its part in the arrangement.
Two directors of Abbott and Frost later gave undertakings to the CMA that they would not act as directors for periods of three and three and a half years. The CMA said at the time – April this year – that it could seek the disqualifications of other directors of firms in the cartel.
Comments (7)
What a load of B****cks
See this CMA caption about anti-competitive practice:
https://www.youtube.com/watch?v=cemTusT9ufs
If you know of any agencies that have spent 10s of millions of other peoples money supporting an unprofitable and therefore loss-leading agency fee over several years in order to buy market share use the number provided on this caption to report them as 1000s of small agencies do not have access to such funds to prop them up?
Also, mention that the largest hybrid agency promotes an average competitors agency fee as 1.5% on national TV- the same fee that those agents in Somerset were severally fined for fixing.
Therefore, if the average agency fee is not 1.5%, then by default, the largest hybrid agency is deliberately misleading the public and must surely suffer the same consequences as those agents in Somerset?
Particularly, when one of their own conveyancing partners reported an average agency fee of 1.2%?
Surely, it is up to the public to work out correct fee savings, not a cash-rich hybrid agent who is backed by other peoples money particularly as they are not offering anywhere near a like for like comparison?
Absolutely …..ours agreed early doors that when we stab each other in the back we only use half the blade depth……
We have the same problem in our area. All the other local agents have got together and agreed to drop their fees to below 1%……..
Nothing like trying to rubbish the name of proper estate agents. “We may be investigating a potential cartel, but we cannot give any further details”. As they have been investigating since March and wont be giving an update until February….how long can it take? More likely they are just dragging it out for a bit of extra coin
I don’t really understand this comment. It was a cartel, all parties admitted to it. Its not a matter of “trying to rubbish the name of proper estate agents” They broke the law to disadvantage the general public.
Sorry RB, I wasnt referring to the previous case but purely this one. If agents are running a cartel then they should be punished. In my opinion the fines issues for the previous case were disproportionate to the offense, certainly compared to other issues which may have a much bigger impact.
My gripe here is that, how long can it possibly take for this investigation to take place? A whole year…i dont think so…but in the meantime through press releases or whatever our industry is dragged through the gutter