The President of the RICS has attacked the OFT for failing to act on rogue agents and for not proposing the regulation of estate agents.
Max Crofts, a partner with King Sturge, said: “It was extremely disappointing that the recent OFT report failed to acknowledge the potential for consumer detriment from the substantial minority of agents who are not subject to any form of regulatory regime.”
He said the OFT should have recommended formal regulation of the industry.
Speaking at last week’s ESTA awards, Crofts said that the RICS would continue to press the next Parliament to regulate estate agents.
He said the idea of regulation in the lettings sector seemed to have received general cross-party approval – “so perhaps there are grounds for optimism”.
He argued for the regulation of estate agents to be part of the same package as regulation for letting agents, saying that otherwise businesses would struggle. “They could be subject to different and potentially conflicting control over separate parts of the operations. That is something that most would dread. It would also create consumer confusion.”
Crofts also called for the future government to address transparency issues around both referral fees and professional relationships.
While he did not allude to any numbers, Crofts said the new Associate grade of RICS membership, designed for estate and letting agents to become members, had received “an encouraging initial response”.
RICS chief raps OFT for failing to regulate agents
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Comments
If anyone is waiting for an org that sells initials to anyone who can add their name to a paper, you will be waiting a very long while for them - NAEA-should be leading but have no power as the membership is just a front.
There is far more regulation of Estate Agents in other countries than in the UK. The British Government and OFT have no intention of addressing this issue as has already been demonstrated by their complacency.
ace - you don't honestly believe that it is only non-RICS members who stray from the straight and narrow, do you?
There is no such thing as a new fiddle in this industry - just a new way of doing it and of hiding it from view. An individual's membership of a professional body does not guarantee their honesty, reliability or conduct, just their ability to pass exams. The body may catch them in the act of what they are doing (they know what to look for...) - but by then the damage is done.
lets all regulate each other, charge a stealth fee and make sime dosh......simples
Well done Max. It is about time someone at RICS spoke out about this.
The OFT and ombudsman are totally toothless when it comes to regulating the estate agency "profession". Lets hope someone will listen!
Exactly!
Time for the NFoPP to earn their corn.
RICS is petrified of losing membership revenue because the average age of the Residential Faculty is 55+. They are out to grab the formal regulation of the estate agency industry, if it ever comes about, and with a Royal Charter they are far more likely to win it than the NAEA. NFOPP need to head off this risk to ensure their long term survival.
Just watch out for these RICS fellas.
I well remember what the selling, buying & letting of residential property through RICS "surveyor" agents was like in the 60' & 70's - a nightmare. In the early 1970's they tried to corner the (then newish) market in "Residential Estate Agency" (i.e. those agents who really marketed and actually sold).
That is why the NAEA was formed - to stop them?
I cannot believe these people. You can regulate anything but if your dodgy your dodgy. How does passing some second rate less then gcse level exam stop agents running off with landlords money..
tut tut, a proffesional body slamming another proffesional body to win memberships. I wont be getting into bed with RICS. Although i do agree with them.
Sorry - can a minority be "substantial"??