PROPERTY industry insiders have welcomed news that, alongside today’s housing overhaul, the Government has proposed a new Code of Practice for estate agents and is also consulting on the need for mandatory qualifications in the sector.
The roadmap announced by the Government includes, from later this year, a Code of Practice to set out minimum standards for property agents and guidance to improve the quality of information in property listings — and from 2027, a consultation on estate agent qualifications and expanded digital tools.
Property industry insiders shared their views on what they would like to see in the new Code of Practice and the qualifications estate agents should be required to have.
Evren Ergin, Founder at ValuQ, a proptech company, said: “You need a licence to cut hair, but not to sell someone’s biggest asset. That gap is the real story, and it is why most good agents quietly want this.
“A code worth having should cover what sellers and honest agents both lose out to: fees and tie-in periods shown plainly enough to compare, every offer passed on in writing, an end to conditional selling, where an offer only moves if the buyer uses the agent’s broker, and material facts upfront, including tenure, lease length and service charge.
“The Code of Practice should also bite on the valuation game. Our research shows the typical home sells for around 3.5% below the asking price, and much of that is a result of the inflated number that won the instruction. Make valuations evidence-based and that fades.
“Regarding qualifications, a proper licence with a baseline standard and ongoing training will be key. The cowboys are the ones dragging every decent agent’s name down, and a real barrier to entry is how you remove them.”
For Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, overvaluations must be tackled.
He said: “Overvaluations are undermining the UK property market and they’re on the rise. They’re one of the most damaging and underreported problems in the UK property market.
“Every overvalued instruction sets a transaction up to fail. A buyer invests emotionally and financially, solicitors are instructed, surveys commissioned, then the lender’s independent valuation arrives and tells the truth the agent wouldn’t.
“On the back of that, deals collapse and real people bear real costs. For some estate agents this isn’t carelessness, it’s strategy. Win the instruction with a flattering number, lock in the sole agency agreement and manage expectations later.”
Bob Singh, Founder at Uxbridge-based Chess Mortgages, also welcomed the news of potential mandatory qualifications.
He said: “Estate agents are the only unregulated players in the purchase process. It’s about time regulation came in to stop the overvaluations we see and the insistence to use their in-house advisers or legal services.
“Estate agents need to be regulated and their regulator needs to be able to impose large fines”
Chris Barry, Director at London-based Thomas Legal, a conveyancer, said one issue that needs to be addressed is the difference in listings quality: “There is currently an enormous differential between quality of listings, which ultimately comes down to the fees agencies charge.
“To gather enough of the information that matters, earlier in the process, there will need to be a legal eye pre-marketing and that will require tech and greater collaboration.
“Upfront fees from vendors to make this happen will be a must and that’ll be a behavioural shift to how the process has been in the UK since Home Information Packs.”
Tracey Dixon, Owner at Cardiff-based Pure Mortgage and Protection, added: “A new Code of Practice should focus on getting accurate information in front of buyers much earlier. Better upfront disclosure would reduce delays, lower fall-through rates and create a smoother experience for everyone involved in the transaction.”
Michelle Lawson, Director at Fareham-based Lawson Financial, said it’s vital any new Code of Practice is properly policed.
She added: “There is already a Code of Conduct that so many estate agents flout. There should be much more integrity, transparency and honesty and penalties applied to those who don’t comply.
“Conditional selling and accurate property info should be top of the list. Many estate agents have no idea about the property they are selling when questions are raised. Upping these standards should be welcomed but policing them properly will make it happen.”
Steven Greenall, Mortgage and Protection Advisor at Dunmow-based Protect & Lend, said “it’s about time” estate agents were required to have qualifications.
He continued: “Estate agents are the only link in the chain where specific industry qualifications are not required. The sooner clients on both the buy and sell side are protected by every professional involved having to follow a strict code of conduct and compliance regime, the better.”
It’s a view shared by Andrew Montlake, CEO at London-based Coreco, a broker: “Anything that speeds up an antiquated system, gives both buyers and sellers more certainty and raises standards in the estate agency world, should be welcomed.”
Meanwhile, Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said there should be a ban on creative writing: “If a house is collapsing, it isn’t ‘brimming with character’ and a damp crawl space is not a ‘double bedroom’.”
