Sir Bryan Carsberg has called for all estate agents to have to belong to a recognised body before they are allowed to practise.
The author of the 2008 Carsberg Review said, however, that he accepted that the current Government is not going to license the industry.
In his review, Carsberg – the former director general of the Office of Fair Trading – made a number of calls for reform of estate agency.
He said HIPs should be made voluntary and that both estate agents and letting agents should be licensed.
But this week, he said that the whole climate of the new Government is against more regulation. But he added: “Surely a law saying that an agent must be a member of an approved body would be a step in the right direction.”
He said that an approved body would not necessarily be only the RICS or NAEA but could be any organisation that fitted an approved framework.
He said the public were entitled to know which agents were regulated and which were “selling applies off the back of a barrel last week”.
He also admitted to being puzzled that novice agents who belonged to the Ombudsman scheme – as they now have to if they sell houses – were able to show instant credibility by displaying the OFT logo.
He said: “It’s a rather odd development.”
Carsberg is the new president of the E-Homebuying Forum, which wants to spearhead reforms. One of its ideas is to introduce interim contracts, signed after acceptance of an offer, with financial penalties if one of the parties pulls out.
Licensing of agents 'will not happen', says Carsberg
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Comments
Your industry is "dead" in the water without this - I cannot beleive that you are all so full of puff with zero substance - if you were you would be lobbying to get licensing rather than letting the likes of - Tescos??? (WTF) at your door? The NAEA is toothless dog who does not fight for the industries best interests at heart. Would someone like to explain why you all want to go the same way as the travel and recruitment sectors? I really had such high hopes for the future of residential estate agency in the UK.
Without a body actually carrying out structured monitoring/checking, belonging to the body is a farce as has been said here many times before. Agents; solicitors; FA's - whoever - ANY rotten apple in ANY industry will go undetected until reported to the authorities.
Even then, it is debateable whether they will be flushed out...
With respect to Henry Pryor, I don't think that Carsberg has missed any tricks. The NAEA may or may not go ahead with its 'licensing' scheme (was due to have done it last year but didn't) but Carsberg was talking about mandatory licensing. Ain't going to happen under this government. As for the NAEA's scheme, is there really any appetite for it? Or money in the bank to do it? I'd say no on both counts.
We do not NEED anymore so-called regulators, registers etc. etc. All that is required is for those existing ones to be proactive and do their job. It will then be the job of those who are members to shout it from the rooftops - because at the moment most seem to pay their subs and sit back!
What would the "smart agent" want included in a voluntary pack?
So Sir Bryan is a quango that is not representative of or on behalf of Estate Agents? Who gives these people jobs of apparent influence on other peoples business's?
I wonder how well solicitors would do if estate agents set up a quango about them. I could right a few books and as well all know, they are highly qualified, licenced and IN PRISON!
I see that it is always the estate agent..... how about builders and new home sales? Now that would be an encylopedia!
On the issue of Voluntary HIPS and a "pre-contract contract" - smart agents are already using these to their advantage. Others would do well to do so as well before everyone else jumps on the band wagon!
May I respectfully correct Sir Bryan who appears to have missed a few developments since he produced his eponymous report on behalf of NFoPP and RiCS.
Firstly, as far as I’m aware the NAEA plans to follow their cousins in ARLA which will result in all members being automatically ‘licensed’.
Secondly, the bulk of the estate agency profession doesn’t recognise RiCS as the appropriate body to represent the views of rank and file sales or lettings agents (I believe that fewer than 4% of agents are members of RiCS.
Thirdly, both of the current redress schemes (RiCS and The Property Ombudsman) effectively share the same Code of Practice and agents who subscribe to that Code (as opposed to just being members of the scheme) are entitled to display the OFT logo provided.
Both TPO and SoS (the latter now calling itself ‘Ombudsman Service : Property’) provide a redress service. By displaying the OFT approved Code logo the public can expect the service they receive to comply with said Code.
Whilst it is encouraging to hear that The E-Homebuying Forum and it’s new president are keen to see reform in the home buying/selling and letting arenas they may be helpful to listen to what the industry wants. According to their website not one estate agent is a member/supporter although there appear to be plenty of search companies and Conveyancing businesses.
Finally, as EAT has reported in the past, the group who have been working on what might be the first achievable step on the road to licensing is already underway with the much anticipated Register of Property Agents. This proposal has already received the support of more than half the industry and requires no new legislation to introduce it.
Hi Woodentop. You are quite right all of the organisations are passive in everything except collecting their subs. I would get rid of the lot of them personally and replace with one clear body in the same vein as Gas-Safe, NICEIC etc. I only subscribe to give my clients some sense of professionalism in an uncertain industry.
Andystev, just as a matter of interest, which organisation that you belong to actually is pro-active in monitoring your day to day activity is or is it a case of only if someone rats on you?
Sanity is returning. Now let's get rid of the Ombudsmen schemes. All of them. We have the police, OFT, Trading Standards and the legal profession. Surely that is enough? Claiming membership of associations and "professional" organisations can lull consumers into a false sense of security. No such organisation can claim that their members are 100% legal or efficient. Educate "the consumer" and let him/her act as adults. They shouldn't need to be wrapped in the cotton wool of bureaucracy all their lives.
I meant to mention that I am a fellow of the NAEA, ARLA & NALS member and OEA for lettings member and I hold the NAEA certificate in residential lettings and management. I am therefore subject to numerous codes of conduct and redress schemes. Licensing & answering to one overall organisation would sure make my life easier!
I am a conservative by nature and thus opposed to over-regulation which stifles industry. THAT SAID I am afraid estate agents have created a lot of their own problems by being in an outwardly 'professional' industry without requiring any type of professional qualifications as would be the case for accountants, solicitors, etc. I believe that if the industry is to continue to exist without the necessity for normal qualifications then a good quality licensing is necessary to sort the professionals from the cowboys. If that is not the case why are we all still discussing this after 10 years?
For as long as being a member of a recognised body is optional, the cowboys will always soil our industry, I spoke with Mr Shapps and he made it quite clear that licensing is not going to happen, however as Sir Bryan state having to be a member of a recognised body would be a good second, as the NAEA encompasses all aspects of the industry already and have an infrastructure capable of carrying this duty, it would seem an easy choice, look at the shambles of the TDS a new organisation trying to control an established industry, so come on Mr Shapps what are you waiting for
At least the PO has teeth, meanwhile the NAEA and RICS who have some members that openly flout the the law, their own code of conduct and just poor professional working standards for years and years and years are given even more credability to Joe Public and nothing is done about it!
Being a member of a recognised body is imperative, provided that body audits clients accounts. Its no good simply ring-fencing,as clients money is only ring-fenced from the banks - not the agent who can still misappropriate funds. Its about consumer protection.
I know of one agent who initially registered deposits with the TDS, their membership discontinued as the were not members of any organisation, and simply used the money to keep trading. They now refund deposits from cash flow and rents received as required.
This is a far more serious issue