OFT investigates estate agents

Wednesday, 25 February 2009 2:20 PM

The Office of Fair Trading (OFT) has launched a study into the regulation of estate agents.

The study will look into issues of price and competition, and whether existing regulations get the right balance between protecting the consumer and keeping the market open to innovation.

Heather Clayton, OFT senior director of infrastructure, said: "With the economic downturn, we need to ensure that consumers receive a good service when buying or selling a home, from a market that is competitive, innovative and well-functioning."

The OFT also said it would be looking at the relationships between estate agents and other service providers such as mortgage brokers, surveyors, solicitors and other professional advisors.

Gillian Charlesworth, Royal Institution of Chartered Surveyors (Rics) director of external affairs, welcomed the decision.

"We believe the study represents an important step towards the government recognising that improvements are long overdue in the estate agency sector, where currently completely unregulated or qualified agents can operate with little control," Ms Charlesworth said.

However, she added: "We are disappointed that the OFT has not taken the opportunity to address the related issue of lettings and letting agents, given that many estate agents also operate as letting agents from the same premises.

"We believe the government has missed an opportunity to look, from the consumer's perspective, at how the market provides property services."

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