Estate Agent Bill

Compulsory ombudsman scheme for estate agents

The last annual report from the Ombudsman for Estate Agents (OEA) said there had been a 9% rise in complaints. These complaints included over-charging, unfair contracts, wrong descriptions, preferential treatment for buyers who use an agent's mortgage service, fee-fixing cartels, and failing to declare a personal interest. Unfortunately, more than half of these complaints were made against agents who were not members of the OEA scheme – about a third of agents are not members - so the only redress for these customers would be through the courts.

It is in the light of this that the Government has proposed plans to deal with rogue agents. The Consumers, Estate Agents and Redress Bill will compel all estate agents in the UK to join a reparation scheme. If the bill, outlined in the Queen’s Speech, becomes law the the Office of Fair Trading will have powers to take action. Alistair Darling, the Trade and Industry Secretary said "A compulsory ombudsman scheme able to award compensation, an obligation to keep thorough written records and new powers for the OFT to strike off the rogues who don't join, will drive up standards".

The bill will also amalgamate some existing consumer watchdog organisations as well as giving customers additional cancellation rights and cooling-off periods when they make purchases from doorstep sellers, even when invited into the home. However, homebuyers, sellers and consumers will have to wait until the spring of 2008 for these measures to come into effect.