Estate agents who deliberately mislead potential home buyers through the practice known as portal juggling are warned that they could be prosecuted and banned from the industry.

The warning, issued yesterday afternoon,  is from industry regulator the National Trading Standards Estate Agency Team, and represents a major victory for a handful of independent agents and their supporters, adamant that the market has been skewed by portal juggling.

It comes after months of protests and huge amounts of evidence delivered by a handful of determined estate agents and allies, horrified at the practice and who have battled frustration after frustration to get their concerns even understood, much less acknowledged or dealt with.

Almost all the evidence has been seen by EYE. When we have asked questions of various parties, reactions have included legal threats and failures to comment. Or we have been told that the problem simply doesn’t exist, or that it is due to an IT issue.

Undoubtedly, some of those explanations are valid.

However,  in a highly significant breakthrough which finally recognises the practice, NTSEAT yesterday confirmed that portal juggling is in breach of trading regulations and can be fraudulent.

Portal juggling involves the deliberate removal of properties on major property portals before relisting them to make them appear new on the market, thus putting them to the top of the list of new properties as well as triggering a possible new property alert to potential buyers.

NTSEAT said it has received complaints that some agents who may be struggling to sell a property are using this practice to mislead potential home buyers.

It confirmed that the practice is illegal and could lead to prosecution.

NTSEAT said that if an estate agent has relisted a property and described it as ‘new on the market’ (or implying it as such), or using relistings as a mechanism for falsely inflating sales statistics, this would constitute an offence under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

It warned that false representations made by an estate agent could also fall under the scope of the Fraud Act 2008.

James Munro, team leader at NTSEAT, said: “It is clear that portal juggling is a concern to many in the estate agency industry and we are today warning those estate agents involved in portal juggling that they may be breaking the law, which could lead to enforcement action from local Trading Standards authorities and prosecution.

“Estate agents and individual employees involved in this practice also face being issued with warning or prohibition orders if they have used misleading statements or made false representations about properties they are trying to sell.

“We will work closely with industry bodies to stop this unfair and misleading practice, which misleads prospective homebuyers and harms honest estate agents who conduct their business in a fair and professional manner.

“If you suspect an estate agent of portal juggling or spot anything suspicious on a major online portal, we urge you to report it to Citizens Advice on 03454 040506.”

NTSEAT is now working with the industry including the redress schemes, estate agency bodies, Trading Standards across the UK and the major property portals to stamp out portal juggling.

This will see guidance issued to the industry about the practice and steps taken to safeguard potential buyers.

Yesterday afternoon’s NTSEAT statement included quotes from Property Ombudsman Katrine Sporle and NAEA managing director Mark Hayward, among others.

Sporle said: “Manipulating internet portals (and any other channels of marketing) to give the impression a property is new to the market, when it is not, is simply misleading.”

Sean Hooker, of the Property Redress Scheme, said: “Agents who are tempted to inflate their number of instructions to lure unsuspecting customers to their doors, or advertise non-existent deals or offer properties they clearly cannot deliver, are cheating the public.

“It is poor practice, unfair and could ultimately be deemed illegal.

“If we get complaints of these nature not only will we come down hard on the perpetrators, we will be obliged to report the matter to NTSEAT for enforcement action.”

www.powys.gov.uk/estateagency