The change to the Estate Agents Act which will allow new business models including some internet agents to operate outside its scope, has come closer to the statute books after its second reading in the Lords on Wednesday.
The Enterprise and Regulatory Reform Bill, which contains a wide range of measures aimed at getting rid of ‘unnecessary bureaucracy’, was introduced by business minister Lord Marland.
Labour said the Bill was a missed opportunity that would do little to help businesses or the economy. The Lib Dems supported the Bill.
Some agents are continuing to keep up the pressure.
On the south coast, the Portsmouth Property Association, which represents 140 agents, is continuing to lobby,describing the change as a 'Del Boy charter'.
Neil Hawkins, PPA secretary, has written to enlist the help of local MP David Willetts.
Hawkins said: “Buying a house shouldn’t be left to the click of a computer mouse through some faceless website or supermarket where the purchaser may well have no recourse of remedy if things go wrong. This is not about simply downloading a song or a book from your iPhone.
“As it is, some estate agents have a bad reputation because regulation is already too soft, and this proposal will allow anyone to come in off the street without having to demonstrate any skill or knowledge of the profession.
“A good agent provides a far more comprehensive service than passive intermediaries, offering local experience and negotiating skills, vetting buyers and following up with solicitors, surveyors and mortgage brokers.
“Allowing agents to act outside of the current legislation will be a recipe for disaster and further erode public confidence in estate agency.”
Willetts has also been told of agents’ concern that the consultation earlier this year was ‘conducted on the quiet’, with so few in the industry knowing anything about it.
Comments
Hawkeye. To answer your question "why do I need the portals ?". To access the buyers. That's all.
As for your comment "the no sale no fee meets with approval from tight fisted vendors who want to 'use' ea's just like you but you do not want to pay for it. " My posts are 100% clear I do NOT want to use ea's and I do NOT want to pay them.... Sonny !
Think (or get an adult to tell you) about the irony of you calling me a parasite. As Happy Chappy points out, just who am I leaching off ?
Hawkeye, a majority of very good agents need the portals too, so you know why he is saying he can't do the marketing effectively without them.
So what is the solution for the likes of Blue, well, you can get access to websites via an on line agent (still regulated by the EA act 1979) for a few hundred pounds and deal with the rest yourself. I agree with Blue it would be easier and sensible if vendors could just cut out the on line agents and go direct to the portals.
If Blue is a parasite who exactly is he feeding off?
Blue
If you are so damned clever why do you need the portals? If you can do the marketing, viewings, negotiationg (so how many no's are there?) dealing with solicitors (plural means you think you can talk to solicitors in the chain? Not so sonny) And as far as surveyors are concerned you have absolutely no idea what makes them tick and many of my wet behind the ears rivals are the same. The older EA's have a wealth of experience which needs to be paid for and the no sale no fee meets with approval from tight fisted vendors who want to 'use' ea's just like you but you do not want to pay for it. Clear off then you parasite.
John, by lying I do not mean that EA's are liars, what I mean is that I too am able to describe my properties within the property misdescriptions act, I don't need an EA to keep me in line. I know right from wrong.
I also agree with you that not all agents are the same. There are good and bad.
My point is, that for me, and probably others, there are not many things that an EA can do that I cann't. That the cost of using one for the one thing that I am unable to do (portals) is way out of proportion.
All I want is an option not to use an EA but still have access to the portals.
I find it ironic that the thing that protects your market the most is the thing that you all hate the most. Portals.
Blue - I'm no longer an agent so have no axe to grind, but I do recall that during my 37 years as one I spent a good 20% of most working days chasing up and down chains and sorting out issues e.g. vehicular access over common land, lease issues etc and overcoming other life-based hurdles such as you get when you're dealing with half a dozen families in chains. Yours is a very simplistic view of what an agent does. Much of the work involves gentle persuasion - encouraging lawyers (many, but not all) to get on with their jobs. for example.
I find your comment about 'lying' to be insulting. There are some agents who lie - mostly they're the bucket-shop-types who come into the business with no background, buy an office because they think they can do better than established agents, then go on to behave badly. No established agent in his/her right mind would work their nuts off to build up a business, only to ruin their reputation by lying. Neither are disclaimers a defence in law so I think you're choosing to believe the mythical view of agents rather than the actual.
Not all agents are the same. But that's because our Government chooses to allow ANYONE (unless they're bankrupts) to set up and sell someone else's most valuable investment without any form of experience or qualification.
Clearly not all agents are as you describe or they'd all be in court on PMA charges. So, it's up to you, the public, to make sure that you choose one that's at least a member of the NAEA or some other official body with the power to cut them off at the knees if they step out of line.
Anyone dealing with any part of the sale or letting of any residential property, by whatever model, should be subject to the same act?
Exactly so Happy Chappy.
I'm not an EA but I can put together my own marketing (without lying and resorting to disclaimers), I'm more than capable of conducting viewings and "negotiating"a price and of dealing with solicitors, surveyors etc.
The only reason I might need an EA is to access the portals. That access could cost me thousands of £££, not to the portals but to some third party paying less than £40pm to put me there.
Estate Agents are for some people, not all though. I'd like the choice please.
Richard, you are quite correct, however, there is a segment in the market that do not require a full estate agency service and an intermediary is exactly what they need.
Passive intermediaries means exactly what it says. They cannot call themselves Estate Agents and as soon as one of them starts to value a house or offer to help a favourite client with their negotiating they fall straight into the net of the Estate Agents Act etc. and will be hauled across the coals by trading standards. Now's the time to start marketing our services properly and start adding the word NEGOTIATORS to our shop fronts. After all, that's one of the two main reasons for our existence and the job we do best.