RICS chief raps OFT for failing to regulate agents

News Category: Industry News

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”.




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