Trade body disappointed with OFT estate agent review

An established trade body has voiced its discontent after the Office of Fair Trade (OFT) closed the book on a long investigation into the estate agent industry.

The OFT undertook a year-long review of the industry to determine whether there was any evidence of poor standards or unfair practice amongst estate agents. The OFT eventually ruled that no changes within the sector are required, but the National Association of Estate Agents (NAEA) believes the organisation has missed a valuable opportunity to introduce new regulation.

Peter Bolton King, Chief Executive of the NAEA, commented:

“Once again the OFT has categorically failed to see that better regulation of the home buying and selling market is required.

“Buying a home is often the largest single transaction of a person's life and it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed.”

While the OFT report showed that overall consumer satisfaction with estate agents has improved, it also revealed that around a third of sellers were unhappy with the amount of money their agents took home.

The OFT said that competitiveness in the sector may be increased by encouraging the growth of online estate agents.

In the past, the industry has come under fire as almost anybody can set up an estate agency business, regardless of experience or qualifications, and without requiring permission from any official body.