Regulation of estate agents
This briefing provides an outline of the current regulation of estate agents. It also looks at past market studies and consultations and considers in detail proposals to tighten regulation.
Many people who sell a property in the UK will use the marketing services of an estate agency (also referred to as property agents). Estate agency work is defined by section 1 of the Estate Agents Act 1979 (EAA 1979) as:
“[…] introducing and/ or negotiating with people who want to buy or sell freehold or leasehold property (including commercial or agricultural property) where this is done in the course of a business pursuant to instructions from a client.”
Estate agents are not currently required by law to be licensed or qualified. They will, however, liaise with professional bodies (such as solicitors and chartered surveyors). In Scotland, where property law is different, a solicitor will manage much of the property sale.
Estate agents are principally regulated by the EAA 1979 and the unfair commercial practices provisions of part 4 chapter 1 of the Digital Markets Competition and Consumers Act 2024 (DMCCA 2024). In addition to this statutory regulation, since 1 October 2008 all estate agents in the UK who engage in residential estate agency work are required to belong to an approved redress scheme, either the Property Ombudsman or the Property Redress Scheme. This is a requirement of the Consumers, Estate Agents and Redress Act 2007.
The National Trading Standards Estate and Letting Agency Team (NTSELAT) of Powys County Council protects consumers and businesses by enforcing the EAA 1979. The team will assess whether an individual or business in any part of the UK is fit to carry out estate agency work within the terms of the EEA 1979. It took over this enforcement role from the Office of Fair Trading (OFT) in April 2014.
Calls for the regulation of residential property agents have been prevalent since the publication of the Regulation of Property Agents Working Group – Final Report (“the Best Report”) in July 2019. In this report, a working group consisting of industry stakeholders proposed that all residential property agents should be licensed, adhere to a single code of practice, and hold mandatory qualifications. The introduction of an independent regulator to oversee compliance was also a key recommendation.
This briefing provides an outline of the current regulation of estate agents. It also looks at past market studies and consultations and considers in detail proposals to tighten regulation.