With Government committed to reducing the regulatory burdens on business in order to help economic growth, the Red Tape Challenge process is scrutinising UK legislation to see where there may be scope for amendments or repeals to reduce regulatory burdens.
Part of this exercise has included a proposal to amend the Estate Agents Act. The RICS – which operates a comprehensive expert witness service for property disputes – was among those asked by the Department of Business Innovation and Skills (BIS) for its views on the proposal to amend the legislation.
The aim, according to the Government, is to help businesses to innovate and grow and allow new business models to emerge while ensuring that consumer protection is not unduly compromised.
In a statement regarding its response to the consultation, the RICS said: "Our balanced yet robust response was put together with the help of the RICS Real Estate Agency Group, consisting of members from both small and large firms, and has been submitted to BIS. Whilst we acknowledge that it is necessary to change the legislation, as it is out of date and produced before the advent of the internet, we are concerned about the way Government are going about this and have expressed these concerns in our response.
"These centre particularly on potential consumer detriment from a growth of unregulated agents, operating outside of the Estate Agents Act, with no requirement to provide redress arrangements."
The outgoing director of its residential faculty, David Dalby, was more outspoken. In a column for UK Property Works, he said: "Ironically, having been told consistently by officials and politicians that there was no possibility of amending...the 1979 Estate Agents Act, to bring letting agents into scope, it now looks as if they are planning to amend the legislation as part of the Red Tape Challenge – but only to take certain practices out of its scope, not widen it.
"There is still a strong argument for minimum standards and expertise within the sector as a prerequisite of practising. Now is an ideal time, while the market is flat, for the 'good guys' in the sector to take this opportunity, to put egos aside and come together to agree standards that should be applied to all practitioners."
Picture © Terry Robinson, licensed for reuse under Creative Commmons Licence