The Estate Agents Act is set to be amended – but not in the way that lobbyists have hoped.
The Government has ignored increasing pressure to amend the 1979 legislation to bring letting agents into its scope, and is instead likely to be taking some of the Act’s provisions out.
David Dalby, outgoing director of the residential faculty at the RICS, makes the revelation in his blog on EAT today, and calls for agents to put their egos to one side to work towards the good of the industry.
He says: “Ironically, having been told consistently by officials and politicians that there was no possibility of amending the primary legislation, the 1979 Estate Agents Act, to bring letting agents into scope, it now looks as if they are planning to amend the legislation as part of the Red Tape Challenge – but only to take certain practices out of its scope, not widen it.
“I have still to be convinced that officials truly understand the nature of the role of estate agents.”
He goes on: “There is still a strong argument for minimum standards and expertise within the sector as a prerequisite of practising.
“Now is an ideal time, while the market is flat, for the ‘good guys’ in the sector to take this opportunity, to put egos aside and come together to agree standards that should be applied to all practitioners.
“More importantly, we should be embarking on a major, and ongoing, programme to raise public awareness of standards and just what quality service looks like, so that consumers can make informed choices based on value for money and real service, not just who is cheapest and claims to be able to obtain the highest, often unsubstantiated, price just to secure the instruction.
“There cannot be a better time for action. Those who have survived this extended recession can set the benchmark for the future of the industry.”
Dalby concludes: “Maybe, just maybe, if the majority of ‘good’ agents can get their act together and gain public demand for such standards, pressure from consumer groups and the industry could eventually lead to Government acknowledging the need to protect consumers and put statutory backing behind some minimum standards of entry and practice.
“However, be careful what you wish for: it is surely better to have industry self-regulation by consent than have centrally imposed statutory regulation.”
The full blog can be read on the site today.
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Comments
Ever squeezed for income, the mainstream in the estate agency industry simply want more regulation and licensing in order to try to further justify higher selling fees as a consequence of being 'seen' to have to work harder to meet the standards of greater oversight .
However, standards will not rise no matter how much supervision is imposed. Complaints against agents have soared at the same time that their fees do.
It's game over I'm afraid
The comment 'superb post' is negative?
You really are a dim witted idiot.
As ever, the informed Wardy is negative. Would the world be a worse place without him?????????
Thank you Wardy, the thing about controlling the competition is being smart enough to know who to control and when, it is no good going up against another decent agent with that trick, both of you lose in an escalating price war.
The reason TPO wants regulation is so they can be the regulator. The reason why NFoPP want regulation is to prop up falling memberships.
Pre HDH’s Blair schmoozing NALS then NFoPP the balance was fine NAEA, ISVA, RICS, ARLA and Law Society. The public knew where they stood and so did those in the industry.
Proper annual Audits of balanced Client cash Accounts and HMRC on top of Section 19 and SA105 and that is as much regulation as is required.
NAEA, ARLA and RICS (principal) membership numbers will be restored, probably dragging employee memberships up too, because the requirement to have nothing more than an Annual Audit of the CCA is enough to hand government all the regulation they really need and restores control and responsibility to the Professional bodies.
If that scenario plays out there is no need for TPO; that is the job of genuinely Professional bodies.
Ebenezer- E.S&Co
Superb post.
Eric will come up with a reply.
It wouldn't be like him to shy away from a comment and a subject so close to the Core of the whole SAFE movement.
For what it is worth, my opinion is that an unregulated market is more beneficial to Good Agents, their customers and their consumers than a regulated one where everyone displays the same badge. In an un-regulated system the bottom feeders will naturally sink to the bottom of of the pond and attract landlords and tenants of a similar standing. Slapping a sticker in the window merely indicates that Nick, Slob and co managed to put on their Court suit and behave for a few hours.
Of course the industry needs to raise its game, but regulation is not the way to go. Fee haggling on properties that one has no intention of taking on is far far more effective. Give Negs the ability to drop to stupidly uneconomic commision rates and watch Nick or Slob match it. Let Bottom feeders have as many loss making instructions as they are stupid enough to take on, with crackhead tenants enjoying Dickensian Squalor.
Controlling your competition's income is far better business than trying to raise their game to your level.
What is un-regulated about lettings? what 1 regulation would you enforce across the whole industry that would make a difference to how things operate at present.
"The Government has ignored increasing pressure to amend the 1979 legislation to bring letting agents into its scope"
Does this mean more hoops for sales agents driving many into the still unregulated lettings side?
Genius.
Not sure why this article has moved on to PA Testing, but the following is from the gov.uk website:--
I've been told that, by law, I must have my portable electrical appliances tested every year. Is this correct?
The Electricity at Work Regulations 1989 require that any electrical equipment that has the potential to cause injury is maintained in a safe condition. However, the Regulations do not specify what needs to be done, by whom or how frequently (ie they don't make inspection or testing of electrical appliances a legal requirement, nor do they make it a legal requirement to undertake this annually).
Much work has been done in recent months by the authorities, payment systems and banks to address how banks can fail in an orderly manner. One aspect of this work is to ensure that any impact from bank resolutions to the continuity of payments for customers is minimised. The article - Considering the continuity of payments for customers in a bank recovery or resolution - highlights some areas where changes could be made so that payments schemes and banks, in conjunction with the authorities, are best prepared for future recovery and resolution scenarios.
hey Industry Observer, guess what. I just did a straw poll of some local buisnessess, well mates who run shops actually, and guess what. They didn't even know what a PAT was! So if you have your place done, congratulations. You are unique. Or a fibber.
Hey Jimmy
Do you know which way Mecca is?
Because with your cavlier attitude towards PAT testing you'd better get your prayer mat out and hope that no member of staff or above all(?) member of the public visiting your offices has an electrical related injury.
'Cos if they do and you haven't pat tested.....................
@Wardy
Hopefully any regulation would be overseen by NALS (which is why ARLA still wants to see it sidelined)
@wardy on 2012-06-20 10:36:26
....." I'm struggling to think of a single change for the good that has been a direct result of any lobbying carried out by TPOS, RICS or NAEA"....
In recent years, I agree. My point entirely..
@ Yeah Yeah Yeah Ray on 2012-06-20 09:55:41
...."our Association leaders need to be vocal in support of Agents who are not only experienced but also trained and vetted".....
I agree. My point entirely..
P.S. Why did PBK really leave - or was he pushed?
It is something to do with their spell checker it doesn't recognise the word Champagning and replaces it with "campaigning"
Statutory regulation would just be run by the same good old boys that currently collect cheques for the various excuses for trade bodies we already have so I don’t see the difference.
Every one of these 'directors' bangs on about how much campaigning they do. I'm struggling to think of a single change for the good that has been a direct result of any lobbying carried out by TPOS, RICS or NAEA.
So what are they going to change then? No mention of what in that article?
Thanks for pasting that, most of us read it an thought , we'll see, sit here quietly, say nothing and give the fresh faces a chance. However since you pasted that, presumably to muster some support in the face of more negativity, you ought to realise that here is another example of the gap between Them and Us. it is apparently the Agents egos that are getting in the way of the good of the Industry.
Where I am sitting when stories like Zoopla providing technology to promote non agents undermining the industry break on EAT and LAT our professional bodies ought to be right out the front with audible comment why that is a bad thing to do, when forum trolls claim that professional qualifications are bought rather than earnt, our Association leaders need to be vocal in support of Agents who are not only experienced but also trained and vetted. Not once has anyone come on here and said that the Fellowship you once proudly displayed was worth more than just a few paid for letter after your name.
XFNAEA is now more widely displayed than FNAEA. This last 20 years has seen our industry go from a respected Profession to a butt of jokes that even today our Host is choosing to repeat and enjoy
Dalby talks a load of Bufton Tufton old b*ll*cks.
What! What!
Not really sure what this article is trying to say, but if it is about cutting down on Red Tape then GREAT! Acts of Parliament such as the Estate Agents Act have no real benefit to society, and hopefully this Government is realising this. Anyone remember the Property Misdecsriptions Act?. Forgotten about after several failed prosecutions. Anyone new to the business probably hasn't even heard of it. And when was the last time any of you carried out a Portable Appliance Test in their office? Annual requirement, just like the Gas Safety Test. I'll bet you haven't done one in years, have you?
".......Changes to the management structure at NFoPP were announced......... three new managing director roles are being created in a move which underlines that the umbrella body will now take a back seat and take on a purely operational role........The announcement emphasises the separate entities of the NAEA and ARLA...."
Congratulations on their appointments. and I wish them every success in vigorously promorting the members and the professions interests.
May I add that in my opinion Lettings & Management (ARLA) requires different skills, qualifications and experience that that of Sales (NAEA). Both are important but in my view emphasising the difference to the public, has been lacking in recent years?.
.
So what is the summary of this piece?
“I have still to be convinced that officials truly understand the nature of the role of estate agents.”
I am afraid that there are a lot of people who also have to be convinced that estate and lettings agents understand their true roles too.
David Dalby is sugessting that it is agents who have the egos? Funny! Shall we give you a clap too David?
I would suggest that neither the current executive of the NFoPP, or given yesterday's PR, the TPO actually understand that there is already enough provision to protect customers and consumers and it is the lack of effective Governance from the Associations that is the root cause of falling membership and slipping standards.
It is all very well giving jobs to the boys so long as they actually do something with the position handed out to them.