Office of Fair Trading market study on Home buying and selling
The Office of Fair Trading (OFT) published its market study on home buying and selling on 18 February 2010.
OFT report : Home buying and selling - A Market Study
The OFT made a number of recommendations to Government on the regulation of estate agents and home buying and selling.
The main recommendation was that BIS should consider amending the definition of estate agency work in section 1 of the Estate Agents Act 1979 so that it is targeted at businesses that undertake activities that present risks to consumers. The OFT believe the current definition is too widely drawn and is discouraging new business models from entering the market to the detriment of price competition in the sector.
The OFT also recommended that BIS consider giving Trading Standards Services greater powers to inspect estate agents’ premises to ensure compliance with legislation; increasing the sanctions for estate agents who breach prohibition orders (banning them from carrying out estate agency work); and preventing estate agents from receiving referral fees from third party service providers (such as mortgage brokers, surveyors and solicitors) in exchange for recommending their services to buyers.
On home buying and selling, the OFT recommended to the Department for Communities and Local Government (DCLG) whether any lessons could be learned for the rest of the United Kingdom from the Scottish Government’s interim review of the Home Report.
The Government has now published its response (see link below) to the OFT’s recommendations.
Government Response to the Office of Fair Trading’s (OFT) Market Study on home buying and selling (PDF, 184 Kb)
