New Code of Practice for estate agents

Too many buyers only discover important property issues after they’ve already spent money on surveys, solicitors and mortgage applications. 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.

Whilst this is welcomed, this isn’t down to what’s included but who and how it will be policed. There is already a Cose of Conduct which so many agents already flout. There should be much more integrity, transparency and honesty and penalties applied to those who don’t comply. Conditional selling, accurate property info should be top of the list- many agents have no idea about the property they are selling when questions are raised. Upping these standards is only welcomed but policing it properly will make it happen.

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 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 (the Property Ombudsman is already warning on this); and material facts upfront, including tenure, lease length and service charge.

It should also bite on the valuation game. Our research shows the typical home sells around 3.5% below asking, £18,800 off (Zoopla, Rightmove), much of it the inflated number that won the instruction. Make valuations evidence-based and that fades.

On qualifications: yes, a proper licence with a baseline standard and ongoing training. The cowboys are the ones dragging every decent agent's name down, and a real bar to entry is how you remove them.

A uniformed approach to what information is needed to list a property will no doubt aid the house buying process. There is currently 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 process has been in the UK since HIPs

Oh, groundbreaking. A Code of Practice. Let me just reflect on the absolute disaster of a file I worked on quite a few years ago because the selling agent lied about a tenure to contain my excitement. And a consultation in 2027? Speed of light, guys. No rush.

Some Basic Rules for the Code Of Conduct:

The "Stop Lying" Clause: A ban on creative writing. If a house is collapsing, it isn't "brimming with character."

Correct Dimensions: Verified square footage. A damp crawlspace is not a "double bedroom."

Qualifications needed:

Photography Ethics: Filters don't fix structural cracks.

Key Management: Showing up on time with the correct keys.

Basic Truthfulness: Not coughing when asked about subsidence.

Hooray for digital tools. Maybe by 2030 they'll learn to CC a broker into an email.

About time too, 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.

Estate agents are the only unregulated players in the purchase process. It’s about time regulation came in to stop the over valuations we see and the insistence to use their in house advisers or legal services

The home condition report should be provided to the lender to help speed up AVM’s or desk top valuations.

A binding agreement to cover each others costs ( capped at say £2000 ) would reduce fall throughs

Estate agents need to regulated and their regulator needs to be able to impose large fines

This seems long overdue and finally reward for the hard work the industry has put in in coming together, with Government to improve the broken home buying process.
Anything that speeds up an antiquated system, give both buyers and sellers more certainty, and raises standards in the estate agency world should be welcomed.
It may not be the panacea to solve all woes, but in an increasingly digital world this will make a real difference and shows how people and technology can work in harmony for the good of the consumer.