Letting agents have been warned to heed legal changes that will impact their dealings with tenants and landlords.
Previous material information guidance, which was introduced in late 2023 to support sales and letting agents meet their legal obligations under the Unfair Trading Regulations 2008, has been replaced by the Digital Markets, Competition and Consumers Act 2024.
The guidance was introduced in phases to bring standardisation within the sector and help consumers make more informed decisions by delivering unified base information about properties.
Agents must now comply with the legal requirements regarding material information in the Act, which require them to behave fairly and diligently in their dealings with consumers. They might be in breach, for example, if they don’t provide key information which is material to a decision on a property, act unfairly, mislead, or behave aggressively towards consumers.
Propertymark warns that the risks for non-compliance are much higher, with more substantial penalties from the Competition and Markets Authority expected. However, CEO Nathan Emerson adds: “While it’s right to consider there will always be progression within the sector, there has been much time invested in ensuring compliance across the industry regarding material information, for it to become superseded by new legislation in less than two years and with limited sector guidance for both consumers and practitioners to rely on, this could cause considerable confusion.”
Sean Hooker, head of redress and ombudsman office at The Property Redress Scheme (right), says upfront and transparent information is essential for the property sector to act effectively and fairly.
“The work done by many in the industry to ensure the material information is ingrained into the culture and practices of professionals in both property sales and lettings over recent years has been invaluable in raising standards and protecting consumers,” says Hooker.
“Whilst we at Property Redress have been at the forefront of resolving issues between agents and their customers, there is a real need for clear and robust guidance to help prevent damaging mistakes being made.
“We will however continue to resolve the complaints raised with us following the principles and values established, but also to apply the strengthened measures in the new legislation.”
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