Policy Fact Sheet: Tackling Rogue Estate
Agents
This fact sheet is designed to give Members of Parliament further information about
the aims of the Housing and Planning Bill, and how ministers intend each individual
policy to work in practice. If you have any questions you would like to ask, please
email [email protected]
What is the Bill hoping to achieve?
Powys County Council was chosen to act as the lead enforcement authority
for estate agent regulation for a 3 year period following a robust tendering
exercise in 2014, and they are named as the lead enforcement authority in
s.33 of the Estate Agents Act 1979. It is intended that the lead enforcement
authority will change from time to time depending on the outcome of future
tendering exercises. The estate agent provisions in the Housing and Planning
Bill will provide the Secretary of State with the delegated power to change the
lead enforcement authority without needing to change primary legislation each
time.
This measure does not change any other enforcement requirements or
provisions in the Estate Agents Act.
Why is legislation needed, and how can Members influence the details?
Primary legislation is currently needed to amend the Estate Agents Act 1979
each time the lead enforcement authority is changed. This is a process which
could happen regularly as the lead authority is chosen by tender. By giving
the Secretary of State the power to make arrangements for a trading
standards authority to carry out the lead enforcement authority functions, we
are providing a mechanism for changing the lead enforcement authority. This
removes the risk that Powys will be named as lead enforcer should the
current arrangements come to an end in April 2017. Legislation is required in
this session to allow time to properly arrange a renewal of lead authority.
The clauses also make a minor amendment to the Consumer Rights Act 2015
so that the Secretary of State and the Department for Enterpise, Trade and
Investment in Northern Ireland will have the same powers in relation to the
production of information that are currently available to local weights and
measures authorities in the event that they are the lead enforcement
authority.
How do we see this working in practice?
The Secretary of State will make arrangements for a trading standards office
to oversee estate agent regulation, warning and banning unfit estate agents in
addition to approving (and withdrawing approval) of redress schemes, one of
which all estate agents are required to join. Cases taken on by the lead
enforcement authority which may result in a prohibition order include offences
of insider trading, kidnapping, fraud, violence, and breaches of the Estate
Agents Act 1979, such as failing to declare a personal interest in property.
Some key facts, initial reactions, and answers to questions you may find
helpful.
Powys County Council has issued 15 prohibition orders banning rogue estate
agents since April 2014. In addition it has issued 4 warning orders and
investigated over 150 complaints.
How will a single Local Authority Trading Standards department take on
the role of lead UK enforcement authority?
Powys has effectively acted as lead enforcement authority for estate agents
since April 2014. Local authorities are well placed to utilise their existing
network of national, regional and local intelligence to carry out the lead
enforcement authority functions.
Does this mean the Government has no faith in Powys County Council?
Not at all. Powys has performed a valuable role as lead enforcer. It was
intended that Powys would occupy the position of lead enforcement authority
for a three year period. This measure makes provisions for the appointment of
a new lead authority at an appropriate point in the future.
Who does the lead authority report to?
The Secretary of State is responsible for making arrangements for an
authority to act as the lead enforcement authority. In practical terms the lead
authority will report to National Trading Standards (NTS) in its role as
coordinator, and NTS is accountable to the Department for Business,
Innovation and Skills for the performance of its enforcement teams and
projects – including estate agency work.
What aspects of the regime will remain the same following the changes
to the Estate Agents Act?
The Government is merely making provision to change the lead authority; no
other aspects are being changed, for example:
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Appeals against prohibition and warning orders will continue to be heard at
the First Tier Tribunal (Estate Agents).
There will be continued access to a public register of warned and
prohibited estate agents.
Estate agents will still be required to join an approved redress scheme,
currently The Property Ombudsman, Ombudsman Services (Property),
and the Property Redress Scheme.
The alternate dispute resolution processes, where differences can be
resolved without recourse to legal action, will remain the same.