The Property Standards Board, set up to promote and help establish the mandatory licensing of all estate and letting agents, has folded.
Five months after the general election, it has thrown in the towel after acknowledging that licensing is no longer on the political agenda – as was repeatedly made plain by Grant Shapps, now housing minister, when in opposition.
The board was a cross-industry initiative set up jointly by RICS and NFoPP in response to Sir Brian Carsberg’s Review of Residential Property, published in June 2008.
The Property Standards Board proposals revolved around a requirement that it wanted the Government to enforce, namely that all sales and letting agents should have to be licensed.
The board proposed setting up a single regulatory vehicle for the residential property industry, which would have run in tandem with a register of private landlords – another initiative discarded by the new Government.
The proposed licensing body would have ‘over-arched’ the existing bodies, including NAEA, ARLA and RICS. These would have been effectively responsible for carrying out the licensing. Minimum standards for a licence to be granted were proposed, with an appeals system if licences were refused or withdrawn.
The PSB itself would have overseen the compilation and maintenance of the directory of all sales and lettings agents.
The board did get as far as producing a consumers’ charter.
It had members on it representing the NAEA, ARLA, NFoPP, RICS, Trading Standards and Solicitors Regulation Authority. Also on it was Bill McClintock, of the Property Ombudsman Scheme, who has also been trying to get his own Register of Property Agents off the ground.
The Property Standards Board was chaired by Baroness Hayter of Kentish Town, a former chief executive of the European Labour Party. She admitted that until chairing the board, she had not realised that estate agents act for the seller, not buyer.
This week, she said: “I am naturally extremely disappointed that we were unable to bring the residential property sector together to raise standards and improve consumer protection throughout this vitally important sector, which involves one of the most important transactions in people’s lives – the securing of a home.
“I strongly believe that consumers need to have confidence in the professionalism and integrity of agents, and this can only be achieved by the adoption of and compliance with effective standards, and the proper monitoring and enforcement of that compliance.
“Although the Board has established a consumer charter, users will only have confidence in it if the industry – with some independent and consumer oversight [supervision] – ensures those who claim to adhere to the charter are monitored, insured and subject to discipline should they fail to comply.
“Whilst it has not been possible without legislation to take the agreed consumer charter to the next stage, the outgoing Property Standards Board hopes that the individual parts of the industry – and particularly those who have not voluntarily joined a professional body – will move quickly towards adopting the charter and monitoring compliance, so that consumers can have confidence in all their dealings during this complex and often stressful process.”
Baroness Hayter, who is also Chair of the Legal Services Board Consumer Panel, said she would continue to champion consumer rights in the House of Lords, and – along with the professional bodies which established the Board – press for the effective regulation of residential agents “to protect buyers, sellers, landlords and tenants from detriment arising from the actions of the unscrupulous minority in the sector”.
Property Standards Board dissolved as fight for licensing ends in defeat
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Comments
Ladies and Gentlemen – I introduce Mr George Dawes.
A fine man, letters after his name and no doubt rich, successful and handsome with a huge market share and his own hair.
Sir, I respect you enormously, I like the fact that you don’t sound like a smug old fool that despite their years still has to drag themselves into a hateful little office with a farty aroma on Saturdays as they never quite got the career choices right.
Your wit and professionalism is a credit to your professional body and the wider industry
Kind regards
Jonnie
'Discretion is the better part of valour'
so lets just say better than Mr pink boards!
Yay, Slam Dunk Mr Wilson!
Where do yopu rank Wokinghamagent?
Mike Wilson you either need glasses or you are in fact David Clift!? Get your facts right please:-
Independent stats from Vizzihome show that David Clift is in fact a lowly 5th in the table of agents for numbers of properties listed in the Wokingham area YTD in 2010 and almost as lowly 4th for the number of properties sold.
Man, you are such a wit!
I had to look up the word Magnanimous, it isn't something I have ever been accused of before. Unfortuneatly that isn't quite the word I would use for a pure business decision. Not being interested in sub 600sqft FTB starter homes or ex-local authority properties that pong of cats and a deep fat fryer, that particular niche was one I was happy to forego, it certainly wasn't an act of generosity
Your mate in Wokingham is doing exactly what I would do; raise the odds, the tardy complacent Agent is as damaging to the industry as the boys with plastic shoes and actually easier to knock over. BO, bad breath and a trouser belt band (minus belt) being turned over at the top by an unhealthy roll of lard is not brilliant for the image. Its funny how both these groups are identified by the cheapness of their suits.
Mr Wilson: Insults, misnaming and pure unadulterated pratiness aside, I am truly joyous that you have found such obvious happiness and purpose in your life. Does this lucky Wokingham Agent know that you have such a crush on him; that he has had such a profound impact on you that you feel compelled to shout his name from the rooftops and plaster it all over your posts on a site devoted to a subject to which you have little or no comprehension of? The pink boards don't mean anything in this day and age (it's all about visibility...), and it could end in tears for you if your affections are unrequited. I hope for HIS sake this is not the case - I
reckon you could be a right bunny boiler given half a chance. Oh, PS - I'm no genius - simply stating the obvious ;0)
I see we have a regular genius on here - Peewee no less.
Is that the best you can manage - it's Sold boards that count, not For Sale boards! I was making the point that a new agent in Wokingham seems to have taken the place over - despite the resident agents who used to have the town to themselves and who seemed to blow corporates away with no trouble.
I'm obviously not party to how many Sales turn to Sold. From what I see in Wokingham and in the town I live in, very, very few are turning to Sold at the moment.
Nothwithstanding your pointing out of the very obvious, David Cliff in Wokingham seems to ahve been a roaring success.
It is my belief that success breeds success - and he is more successful in taking instructions on than any other local agent. The friend I visit in Wokingham is a mortgage broker so he knows the local agents well - and confirms that David Cliff is a serious player in the town - after just (about) a year trading.
Thanks, again, for pointing out the obvious. You are a credit to your trade.
Dammit! I hate making spelling mistakes - especially THAT one!
Mike Wilson: "About a year ago I noticed new (very loud) pink and black For Sale boards springing up everywhere... they have allowed him to snaffle (I'm guesstimating) at least a quarter of the business in the town." Oh, dear, Mike. What you fail to understand here is that FOR SALE boards mean nothing. Zilch. Nada. It is the SOLD boards to look out for - they are the mark of success and put food in the mouths of Agents. Never mind - it's not the first time your lack of understanding of Estate Agency has hit the surface like a meteor!
That's very magnanimous of you - allowing new agents their own little patch. You should pass on your comments to the agents in Wokingham - a mate of mine lives there and I see him about once a month. About a year ago I noticed new (very loud) pink and black For Sale boards springing up everywhere. David Cliff estate agents.
Well the agents in Wokingham must be very generous because they have allowed him to snaffle (I'm guesstimating) at least a quarter of the business in the town. His boards are unmissable and everywhere.
Which to me means that the old established agents' reputations mean absolutely nothing.
I have taken this thread up to the top Peebee, reading it back to front from down the bottom is too much for my autistic brain, but to answer your point about the bad property sellers, they have to rely on fringe methods to grab as much money as they possibly can. They operate in a world where they are often selling property for people who have more and who have achieved more than themselves and it is pure greed that drives them to grab as much as they possibly can. They will lie, cheat and deceive whoever to have the material things that they falsly think defines wealth. Without the sense or skill to control their market they have to offer cheap fees and flatter their vendors with exaggerated valuations, being both greedy and stupd a good number of vendors will end up a service as plastic as their agent's shoe and as genuine as their agent's Oyster.
Okay, mate - now I see where you are coming from. Pretty much agree with what you say - ESPECIALLY the bit about the gulf of difference between a property seller and an Estate Agent. I Further agree with your view on vendors who knowingly instruct the 'ask high, pay me peanuts' brigade - but then we also know that there are some very convincing ('r')souls out there who stuff vendors' heads full of magic about their capabilities to outsell the competition - and all for less outlay! I love the line "...the new boys are still operating the same sector I gave them 15 years ago..."; you're right up my street, George! My only bugbear - why only charge 3% for multiples?? I thought when I read your opening lines we were in for fisticuffs; this was one of the more enjoyable 'sparring sessions' I've had on this site. mate - as far as your promise to give me "a few whacks to the ribs..." goes... you punch like my baby sister! ;0P You stick around, mind - you're one of the few I'll 'talk' to anytime on here!
I agree with Paul that it is time someone took a closer look at NALS and the qualifications of their so-called 'adjudicators' who have absolutely no knowledge of the industry they purport to represent. Just another bunch of freeloaders feeding off 'regulation'.
Apologies for breaking this post away from the thread below Peebee but it will be easier to whack a few blows to your ribs if we start over up here.
Please feel free to agree or disagree, it won't come to an argument!
Bad Agents are easily controlled if the good ones know what they are up to. The good guy in town is normally in full control of the whole area and if clever knows how to control the register and income of any competitor. Hereabout the new boys are still operating the same sector I gave them 15 years ago, they are doing well and making a living. There isn't a corporate within 40 miles of here because they simply do not know how to break into the area.
There is a difference between selling property and being an Estate Agent, far too many folk who sell property give themselves false credibility by claiming to be an Estate Agent. I have no sympathy for those that choose to instruct agents who over value or offer cheap deals. I take great delight taking easy 3% multiple agency fees from the 6 weeks later. Often the purchaser has been on the books of Mr Cheap fees but they are happy to wait a few weeks to buy the property at the correct price.
George - This is really wierd, but I don't know whether to wholeheartedly agree with you here or start a full-blown argument (sorry - debate...!) on both of your points. NSNF is certainly a great motivator - IF the individual who operates it does not want to lose money and waste time expended. HOWEVER, in the Agency world there are other factors which have surfaced (particularly the Numbers Game theory) which override the negativities of No Result No Pay. The corporates (according to the indies, of course...) started the idea of shelf stacking; although now it is pretty much universal. Personally, I was always after 100% conversion from instruction to sale. Achieved 96% over a three-year period 1993-96, so I guess I didn't do so badly - was just p!$$ed that the other 4% withdrew before I hit my target! With regard to the "Bad Agents" you refer to - I need you to expand on your comment. Surely Bad Agents exist because they are bad themselves; not because they work for bad people? Would it not be more realistic to say something along the lines of "Bad Agents EXIST and TRADE on the back of greedy or naive vendors"? I look forward to your response.. Like me - I see you don't like questions unanswered (hint, hint, Mr PropertyMatch...) ;0)
Ironic that the regulator would have been controlling an industry that it dosen't know ... what a farce and good riddance.
We have regulation coming out of our ears and there is the Property Ombudsman Scheme who has teeth.
Active Policing is the answer IMHO. We continue to get bad press because the small minority are being found out after the fact, not because of a lack of licensing.
No service (sale) no fee, is the strongest possible regulator of any market anywhere in the world. The fact that "Bad" Estate Agents exist is down to the greed and stupidity of the vendors.
SPOT ON!
Having seen some of your posts before I suggest you go and comment on something you know about.
If you do have anything to do with property selling/letting - retrain
With TPOS/ RICS SOS in place, a box of legislation as to what agents can and can't do, already exists regulation and legislation of what agents can and can't do. Of more concern is the private individuals carrying out agency work ignoring existing regulation. As such others practising in agency flaunting the rules firstly need addressing, ie those advising on BMV - lease options etc most of which offer property advice (often incorrectly to clients). There are those trading in property that are doing far more damage than the handful of bad agents.
"The Property Standards Board was chaired by Baroness Hayter ..... until chairing the board, she had not realised that estate agents act for the seller, not buyer."
What qualifications did she have for the post of chair, then?
Sorry? Where in my post did I say I was anti-ANYTHING? Don't put words into MY mouth, Mr Deckard - I have MORE than enough of my own, thank you!
Industry Observer
Can I ask have you not heard of The property ombudsman???
So where does that leave NALS? They've been lurking and lobbying (in an incompetent and ineffective way) to be the licensing organisation for the lettings sector for yonks - they've been essentially sitting there waiting for the Government to introduce legislation forcing all lettings agents to become members of their little racket. Their new logo even uses the word licensed! Surely it's time they too were taken down a few pegs and prevented from attempting to use wording which is not, and now probably never will be, legitimate? I'd say they were guilty of attempting to mislead the public apart from the fact that their marketing efforts are so ineffective that most members of the public have never heard of them anyway...
PeeBee I'm surprised that you are anti something that would
a) Raise standards
b) Raise fees when the whole industry is moaning on about transaction levels.
Industry Observer: Your 'observations' of the industry are through barbed wire blinkers. Bitterness does not make your argument plausible - it simply portrays you as a vindictive crank. I note from your previous post you are a father - a proud one at that, so you obviously have a human heart beating within you. Don't play the ogre on here - it doesn't become you...
Lady Hayter confirms what we all know, all Politicians are thick, living in an islolated world of thier own.
The unemployable trying to control and live off the employable.
Sad in a way. We must realise there will always be 'them' and 'us' but ensure these unemployable people do not fully control and live off us which is their aim.
Which clown thought it a good idea to appoint this baroness person to chair the body, when she herself obviously has no knowledge of how our profession works - didn't know the agent acted for the seller! Just priceless!!!
Anyroadup - why worry - it's not going to happen anyway. There's enough regulation in my opinion
The problem is anyone who has a vested interest in any industry cannot comment objectively on it being regulated, no matter what business stream it is. Estate agents and letting agents all think they are great, don't need qualifications, experience, monitoring,m regulating or anything else. If they were correct that of course would be fine. Problem is they are not. Licensing should be mandatory - as should membership of a totally independent redress scheme with teeth and the ability to award big sums. But again agents all think they don't make mistakes, treat all customers 100% correctly 100% of the time but they don't. Many do but you have to go by lowest common denominator. If the only way to ensure the weak perfomr properly is to regulate the strong then that is how it has to be.
Good news. Whilst the aims of the PSB were laudable there was never going to be enough room on most agents letterheads for another logo or the desire to possibly have another subscription and code of conduct etc to deal with.
RICS would clearly like to regulate the industry but punches way below its weight in residnetial matters. I feel another attempt at merging/taking over/consolidating with NFOPP may be a better way forward. (puts on flak helmet and ducks!)