★★★★★

Rated Excellent

UK Property Finance

★★★★★

Rated Excellent

open 7 days

Government Urgent to Clamp Down on Rogue Estate Agents

by | Mar 30, 2020 | Other Finance News

Ministers in the United Kingdom are once again under fire for failing to roll out important reforms outlined in 2018 by Lord Best, which afford greater protections to customers working with estate agents.

A recent episode of BBC Radio 4’s Money Box program highlighted the extent to which unsuspecting customers continue to be misled and misinformed by rogue agents, often finding themselves tied into binding long-term agreements.

The programme focused on the case of 65-year-old Su Francis from Buckinghamshire, who spoke of being stuck “in limbo” after being duped by a quick-sale estate agent.

High-pressure tactics

Interviewed by the BBC, Mrs Francis said that the quick-sale estate agent who visited her used high-pressure tactics to coerce her into signing up. Unfortunately, it wasn’t until she received a phone call a few days later that she was made aware of the full details of the contract.

“They were quite hard about [me] signing up. Subsequently, I found out I was signed up to them for a year,” Mrs Francis told the BBC.

“They provided no service whatsoever; they provided no viewings; nobody came to see it [the house], and when I called them, it was just recorded messages.”

“It’s also left me quite worried about whom I should take on and whether I can trust people.”

“It’s left me in limbo because I haven’t been able to sell my house. As far as the financial implications, until I can sell my house, it’s impossible for me to plan for my financial future.”

Mr & Mrs Francis’ was not alone in her negative experience working with state agents, as a second homeowner contacted the show to report similarly underhand tactics. Julia Armstrong claimed that the estate agent reduced the asking price of her property by £50,000 without first seeking her authorisation.

“A year later, we have put our house on the market again, and every viewing has said it’s overpriced now because it was listed at £50,000 less last year,” she told the BBC.

“It was a shock to us, and our new agents advised us to drop the price this year immediately by £30,000 [to try to get people to even consider it].”

Evidence suggests that homeowners looking to close quick sales on their properties are facing the growing risk of losing money or being dangerously misinformed by quick-sale estate agents.

Overdue reforms

When the government approached Lord Best in 2018 with a request for proposed reforms to improve estate agent operations in the UK, he responded with a series of urgent recommendations. One of which involved the creation of a new independent regulator for the industry, which would ensure all sales and letting agents were sufficiently licenced and qualified to offer such services.

Those found to be operating without appropriate licencing would subsequently be guilty of a criminal offence.

Lord Best says acting as a property agent without a licence should be a criminal offence.

“At the moment, anybody can set up shop and the next morning be operating as an agent,” said Lord Best.

“They can take quite a lot of money off you, and they aren’t regulated.”

“Lawyers or accountants have proper qualifications and are properly regulated, but not property agents.”

“We need you to get your head around these recommendations and get on with it.”

In response, the Ministry of Housing simply reaffirmed its commitment “to raising professionalism amongst property agents and welcomes the work of the independent Regulation of Property Agents working group, chaired by Lord Best.”

The government also promised a formal response to Lord Best’s proposals, following full consideration, but refused to offer a timetable of any kind.

Recent Posts

Are Bridging Loans Available to Businesses?

For businesses facing cash flow challenges or time-sensitive opportunities, bridging loans can be a game-changer. Property investors and businesses across various industries are increasingly using these short-term, flexible financing options. Can businesses access...

Right-to-Buy Mortgages: Turning Your Council Home Into Your Own

For many council tenants in England, the dream of owning their home is closer than they might think, thanks to the Right-to-Buy scheme. Introduced in the 1980s under the Housing Act, this government initiative allows eligible tenants to purchase their council home at...

Owner-Occupied vs. Investment Properties: Choosing the Right Commercial Finance Option

Are you a business owner looking to purchase commercial property in the UK? Whether you’re planning to occupy the space yourself or invest in a property for rental income, choosing the right financing option is crucial. In this blog post, we’ll explore the key...

Residential vs. Commercial Mortgages: Key Differences Every Borrower Should Know

When it comes to financing property in the UK, whether you’re purchasing your dream home or investing in a business premises, the type of mortgage you get will shape your financial commitments for years to come. In this blog post, we’ll compare residential and...

Using a Secured Loan to Raise a Deposit for Your Next Property Purchase

Purchasing a new property can be an exciting milestone, but one of the biggest hurdles is often coming up with a sufficient deposit. For many, a secured loan offers a viable route to bridge that gap. In this post, we will explore how secured loans work, the benefits...

Understanding Interest Rates and Loan Terms Through Calculators

Navigating the world of loans in the UK can feel overwhelming, especially when faced with various finance options and complex interest calculations. Fortunately, loan calculators are available for different options such as secured loans, bridging loans, development...

Key Housing Market Predictions for 2025

As we step into 2025, the UK housing market is poised for notable changes, particularly concerning mortgage rates. Recent analysis suggests a favourable shift for prospective homeowners and investors. Projected decline in mortgage rates The consumer body Which?...

How a Secured Loan Calculator Can Help You Make Smarter Financial Decisions

When contemplating a secured loan, the financial risks can be significant. Whether you're planning a home renovation, consolidating debt, or purchasing a vehicle, understanding your borrowing power and repayment terms is crucial. A secured loan calculator is a...

Are Bridging Loans Good for House Renovations?

When undertaking house renovations—whether to enhance a property’s value or create your dream home—securing the right financing is crucial. Bridging loans are a popular option for homeowners and property developers alike. But are they the best choice for renovations?...

Do Bridging Loans Come with Risks?

For many homeowners, investors, and businesses, bridging loans have become a popular choice because they provide fast, short-term finance when it's most needed. However, like any financial product, they do come with their risks. Understanding these risks is crucial...

Categories