James Munro, head of the National Trading Standards Estate and Letting Agency Team, has responded to recent criticism aimed at his organisation, and pointed out that it is working closely with property portals and industry bodies to help establish what basic essential material information should be provided by estate and letting agents upfront on property listings and on portals.
The National Trading Standards Estate and Letting Agency Team (NTSELAT) has come under attack in recent days for failing to consult with long-term shared owners and leaseholders as part of their review into what constitutes ‘material information’ in property listings.
Housing campaigners united yesterday to send an open letter to the NTSELAT. It makes recommendations for transparency on key aspects of shared ownership including: the assured tenancy nature of the tenure, lease length and number of years remaining until the critical 80-year threshold, the freeholder’s policy on lease extension premiums, and unlimited liability for 100% of charges (including fire safety remediation costs) regardless of the size of the percentage equity share purchased.
The idea behind providing important information on property listings – the starting point for the vast majority of property searches and transactions – is to enable agents to meet their legal requirements at the start of the consumer journey.
Under existing legislation, as set out in the Consumer Protection from Unfair Trading Regulations 2008, estate agents and letting agents have a legal obligation not to omit material information from consumers on property listings. But current practices around disclosure are not consistent across the industry.
NTSELAT is developing guidance for agents to clarify what should be considered as material information.
To inform this guidance, the team invited estate and letting agents to share their thoughts about what constitutes material information – the deadline for survey responses was last night.
James Munro, head of the National Trading Standards Estate and Letting Agency Team, said: “I would like to thank everyone who has responded to the agent survey on the provision of material information on property listings. We know this is an important topic and I’m delighted that the programme is generating significant traction and seems to be galvanising the case for change across the industry and related sectors, sparking a range of related initiatives to help improve the home buying and renting process.
“Today we received an open letter signed by a number of organisations that underlines the importance of this initiative. The letter highlights why change is needed and agrees with the aims we share with a number of stakeholders: that access to accurate and essential information to make the decision to buy or rent is vital. The letter also included suggestions on what constitutes material information, which we will consider alongside responses to the agent survey and other feedback we have received.
“The correspondence also expresses disappointment at a perceived lack of consultation, which I am keen to address. For background, the initiative is at a very early stage. We are currently undertaking initial research with estate and letting agency businesses to identify some of the opportunities and barriers to providing material information and the extent to which that information is already being provided.
“Our engagement with agents follows research we carried out with people who have recently moved to a property or plan to do so in the future. At this formative stage of the project where we are learning about opportunities and barriers facing the industry, this was designed to highlight some of the issues facing consumers and the need for change.
“We will review the responses from agents to the survey and will use these insights to help us develop recommendations. We look forward to publishing these recommendations once they’re drafted and would be grateful for views from a wide range of stakeholders on these. This will provide an opportunity to engage meaningfully on proposals that will bring about genuine change to how material information is provided on property listings. We will confirm timings for this part of the process in due course.”
Comments (5)
The wonderful stuff about all this is that its entirely based on hindsight… the idea that people would have done things differently “if only they had known”. That somehow its those terrible evil agents who “sold” them a house that wasn’t right for them, as if they were forced to buy it on the spot like a warranty on a new TV at Currys. Not, as is reality, over 3 months with their many visits, solicitors, surveyors and mortgage brokers all providing them with opinion and advice.
The portal leads I receive on a daily basis prove unequivocally that buyers don’t read what’s in front of them, let alone understand it.
The portals themselves provide maps and street view, yet how often are we told “It’s not quite the right location for us”.
We provide floorplans… they say “Its not quite big enough for us”. Buyers (be it for houses, cars or anything else) need to take responsibility for the choices they make and that also includes which solicitors they use.
How the lawyers have avoided their share of responsibility for the leasehold scandals is quite honestly beyond me, perhaps its because we all know if you defame a solicitor you risk getting a writ in the post. If you defame an estate agent its basically just a meme.
I feel a bit like the kid in the corner who’s ostracised for knowing more than the teacher.
This is legislation from 2008 we’re talking about that somehow managed to replace legislation all agents knew about and knew how to comply with. In 2015 Mr. Munro said he was going to police CPR and BPR but neither he nor anyone else before or since troubled to say what CPR and BPR are. Those who’ve found out are good, others who haven’t will be blissfully unaware anything is going on.
When I read “At this formative stage of the project where we are learning about opportunities and barriers facing the industry” all I can do is feel exasperated, there have been workable solutions in place for 9 months now but because ithey’re solutions not designed and built by a closed shop committee its as if the solution and experience doesn’t exist.
Yeah, yeah I know, I’ve spoken out of turn again but this is just infuriating
“NTSELAT is developing guidance for agents to clarify what should be considered as material information.”
CPRs came into effect on 26 May 2008. it officially took over from PMA1992 as the designated Legislation of residential Estate Agency on 1 October 2013.
I would suggest there is only one piece of material information needing clarification here:
Why are NTSELAT only “developing guidance” for this critical, THIRTEEN YEAR OLD legislation now?
Understandably the principal focus appears to be on leasehold properties, the sale of which several local conveyancing solicitors view with dread during these busy times.
But educating buyers must go hand in hand with educating agents in ensuring they understand the concept of “material information” likely to affect a buying decision, thus what should be included in sales particulars and on portals at the earliest stage.
Currently I am faced with re-marketing a very appealing property that has suffered repeated subsidence and consequently has an appallingly limited scope for insurance with consequently dire effects on its suitability for a mortgage.
“Only the brave and naive need apply” doesn’t really satisfy my client’s expectations !
Displaying more information up front for buyers to make more informed decisions seems like a wise move but its only going to have a benefit if the buyer is better educated in the first place. Sticking a couple of numbers on the front page of a set of details ticks the box but only does half the job. Unless you know the significance of them they are largely meaningless.
Since a lot of disclosure is related to leasehold property creating a series of official videos dealing with some of the topics would seem like a good move with immediate benefits….
e.g. Lease length and rising ground rent / lease extension or freehold purchase / Management of the building and service charges
would be a start.
Agents starting out in their careers would also benefit from the training…..
If the Govt. ever decides what they are doing with the leasehold changes they are proposing some of this may be a moving target.