The government’s decision to make it compulsory for estate agents to sign-up to an independent ombudsman scheme is a cop-out and will not deter the cowboys, says the Royal Institution of Chartered Surveyors (RICS)

Yesterday, the government announced a compulsory sign-up scheme would be added to the Housing Bill. All estate agents are to be required to register with an ombudsman who will have the power to refer rouge estate agents to the Office of Fair Trading. See our story yesterday, Government roundup of rouge estate agents

RICS argues that while the legislation is a step in the right direction, it is merely a knee-jerk reaction to the Office of Fair Trade (OFT) report on residential estate agency published earlier this year, and the industry needs a more comprehensive review.

Regulated estate agents deserve something better

Regulated estate agents and consumers deserve better than something tagged on the end of the Housing Bill, said the surveyors in a press release.

Louis Armstrong, RICS chief executive, said: “A consumer redress system is only half the equation – government is just tinkering around the edges. It has taken the easy option which will merely serve to lull the consumer into a false sense of security.”

“We need to know the level of consumer dissatisfaction through valid research and find a way to stop people having cause to complain in the first place.”

“The real root of the problem is that anyone is able to set themselves up to practice as an estate agent. Consumers are blissfully unaware of this. Government has made mention of a minimum level of competency and transparency being introduced for all residential estate agents but unfortunately it seems to have been buried at the end of its response to the OFT report and we fear this may be an indication of where it lies in their list of priorities.”

“In the long-term, we must have some form of compulsory licensing which will make it impossible for the cowboys to continue to operate.”

“In the short-term, however, we need to communicate to the public that they can already ensure they are dealing with professionals by opting to go to an RICS, or similarly regulated, estate agent.”

Praise for a first step forward

The National Association of Estate Agents welcomed the government announcement saying, “The plans for compulsory membership of an independent redress system – vital to protect the public throughout the home buying and selling process – are particularly welcomed.”

“The proposals put forward in this report mark a significant step forward for the industry and a brighter future for homebuyers and sellers.”