A group of property buying companies have collaborated with the Property Ombudsman (TPO) to create a new Code of Practice to address the issues raised in the Office of Fair Trading's (OFT) market study into the Quick House Sale' sector.
The OFT study into companies that purchase properties directly from consumers strongly recommended the sector adopt a form of self-regulation, which spurred several property buying companies to become founding members of a new trade body, the National Association of Property Buyers (NAPB).
Property buying companies wishing to join the NAPB must register with the TPO and follow a new Code of Practice that will come into force on 1 July 2014 to ensure:
All NAPB members follow the same professional standards, as outlined in TPO's new Code of Practice.
Home owners are treated fairly and are able to make an informed choice about how to sell their home.
Consumers using a NAPB agent can access TPO's free and independent dispute resolution service in the event of a complaint arising.
Jonathan Rolande, NAPB's founder member, said: The NAPB is the first and only trade association of its kind representing this market sector. Property buying companies have existed for decades but they are still relatively unknown in the eyes of consumers, compared to the fields of estate agency and lettings. Our aim with NAPB is to raise standards and educate so homeowners know what to expect when considering a quick property sale.
While the OFT study (published in August 2013) identified that the quick house sale sector was dynamic and innovative, which offered benefits to home sellers who want a quick, guaranteed and hassle-free sale, the report also highlighted a number of concerns, which the nine founding members of the NAPB wanted to address.
Jonathan added: By having every NAPB member registered with TPO, we can offer consumers that all-important peace of mind to assure them that their property buying agent is committed to following a stringent set of professional standards that comply with the relevant property and consumer laws, with the added comfort of knowing they can have a complaint independently reviewed by TPO in the event of a dispute ever arising.
Christopher Hamer, the Property Ombudsman, said: The OFT's Market Study provided a real insight into the sales practices of property buying companies. It is a credit to those firms that have set up the NAPB that they have taken action to address the findings and worked with TPO to create a new Code of Practice and facility for consumers to access a free, independent dispute resolution service.
Having met with the OFT on several occasions to discuss the standards and safeguards included in the new Code of Practice, the NAPB's decision to make it compulsory for all members to register with TPO is a testament to their commitment to self-regulate and offer consumers accountability.