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Regulation and Redress in the UK Housing Market

This report was prepared for BERR and CLG by Professor Colin Jones at the School of the Built Environment, Heriot-Watt University.

The review was announced by the former Consumer Minister Ian McCartney during the passage of the Consumers, Estate Agents and Redress (CEAR) Bill in 2007. The aim of the review was to consider aspects of the housing market, such as letting, that were discussed in Parliament, but were not included in the Bill’s provisions.

The review's specific objectives were to:

(i) Assess the current regulatory frameworks in the following sectors with the aim of considering whether there is scope for simplification or better regulation:

• Estate agents – taking into account the implementation of the Consumers, Estate Agents and Redress Act 2007 (CEARA 07);
• Lettings agents;
• Home Information Packs - in particular HIP providers and private search companies;
• Site owners acting as estate agents for park homes.

Analysis of the above sectors relates to their application to the UK, except HIPs and lettings which relate to England and Wales.

(ii) Identify gaps in the frameworks and establish an evidence base on the level of consumer detriment;

(iii) Identify any areas without redress provision, areas that have voluntary redress provision and which have statutory provision, and any differences between standards or criteria used by redress schemes across the property sector.

(iv) Assess the scope for encouraging simplification and strengthening of existing redress provision by non-legislative means, and explore the feasibility of a means by which consumers may be able to have one contact point for all their property related complaints.

(v) Examine how consumers’ awareness of their rights under existing schemes can be improved and to avoid consumer confusion.

(vi) Provide recommendations on how best to address issues emerging from (i) – (v) by applying the principles of Better Regulation.

The main conclusion of the report is that there are inconsistencies and gaps in the structure and basis of regulation and redress schemes, and that there is scope for reform, extension and rationalisation.

The Government welcomes Professor Jones’s report, which usefully maps the regulatory framework in different sectors of the property market, and identifies regulatory gaps and areas lacking adequate redress provision. It is an important contribution to the ongoing debate concerning improving service standards among property professionals, for the benefit of consumers. BIS and CLG are reflecting on the report’s findings and recommendations together with other reports affecting the property sector (Carsberg, Rugg, the OFT market study (when published) and the BIS review).