The OFT announced on 8 December 2004 that it was to initiate a market study in the supply of property search information. This followed the OFT announcement that its investigation into pricing policies in the online property search sector concluded that there were no grounds for action under the Chapter II prohibition of the Competition Act 1998. In that investigation the OFT acknowledged that the market as a whole needed further in-depth study.

Property searches covering such areas as land ownership, environmental information and planning permission, form an essential part of buying a property. This information, held by a number of bodies – including local authorities, the Land Registry, the Register of Scotland, the Environment Agency and the Coal Authority – is obtained by conveyancers through three main routes on behalf of property buyers:

• via a direct application to the information holder

• through an electronic gateway, which conducts electronic searches of the database of the information holders; and

• through a property search company, which coordinates searches to provide an all-in-one package.

The OFT has received complaints from property search companies about difficulties in accessing property information from information holders – each of which has a statutory monopoly over the information they hold – and about competition in the market as a whole.

The OFT’s study focuses on how consumers’ needs are met in terms of how information is collected, access to information, charges for this information, the structure of the market and regulation of the electronic gateway.

23 December 2005

Government Response (11 pages)

Notes

1. The Housing Act 2004 places a requirement on sellers in England and Wales, or their estate agents, to provide a Home Information Pack when they start marketing a property. This requirement is due to come into force by 2007. A consultation is currently underway by the Office for Deputy Prime Minister to decide the content of the packs. See www.odpm.gov.uk for further information.

2. DTI has a general interest in OFT's market studies (and co-ordinates Government responses where those studies make regulatory recommendations).

3. DTI is responsible for delivering the competitive framework for the growth of successful businesses and a fair deal for consumers. The Competition Act 1998 gives the OFT powers to investigate suspected infringements of the following prohibitions (which mirror the EC competition rules):

i) the Chapter I prohibition prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have the object or effect of preventing, restricting or distorting competition in the UK (or any part of it) and which may affect trade within the UK (or any part of it)

ii) the Chapter II prohibition prohibits conduct by one or more undertakings which amounts to the abuse of a dominant position in a market which may affect trade within the UK (or any part of it).

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