Watchdog to 'consider buying and selling without real estate agents'

Published 18th Feb 2010

Homeowners may be able to cut out estate agents when buying and selling property under plans expected to be considered by the trading watchdog.

Research carried out by the Office of Fair Trading found that consumers are becoming increasingly open to ways of buying and selling property that avoid using estate agents.

The OFT said that although the majority of sellers still used an estate agent, more than a third initially considered selling their home privately, using an online estate agent or selling their property at an auction.

The report is expected to look at the new ways of buying and selling property that may develop in future, particularly through the use of the internet, and whether the current market is open to competition and innovation.

It is also expected to consider the level of consumer protection that these new selling models would require.

But the OFT is expected to stop short of heavily criticising estate agents, or calling for greater regulation of the sector.

Instead, its report is expected to say that most consumers are broadly happy with the service they receive from them.


Previously published research, undertaken as part of the study, showed that 88 per cent of buyers and sellers said they were satisfied with the service they received from estate agents.

The majority of consumer complaints relating to the home buying process were also about other buyers or sellers or their solicitors, rather than the estate agent involved in the transaction.

However, a survey of Trading Standards found that in 2008, one in four estate agents was failing to comply with relevant regulations when they were first visited by officers, suggesting the OFT may suggest measures to improve this.

It is also expected to look at the practice of estate agents selling third party services to customers, such as mortgages, surveys and legal advice, upon which they earn commission.

Two-thirds of buyers were offered other services by their estate agent, but only 36 per cent of them went on to use them, while eight out of 10 did not think they received a 'hard sell'.

Source: ' Daily Mail '

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