Property professionals have expressed support for government plans to regulate estate, letting, and managing agents, although concerns have emerged regarding potential costs and enforcement.
The government confirmed its plans yesterday for independent regulation, which would mandate that agents hold a licence and appropriate qualifications to operate. An independent regulator would be responsible for setting professional standards and could withdraw licences if agents fail to meet them. These plans are part of broader leasehold reforms, which also aim to address certain permission and administration charges.
Nathan Emerson, CEO of Propertymark, welcomed the initiative, stating that his organisation has long campaigned for such action. Isobel Thomson, chief executive of safeagent, and Tim Hyatt, head of residential at Knight Frank, also backed the regulation, with Thomson noting that professional agents have little to fear. Hyatt emphasised that stronger regulation and greater transparency around fees and services are the right way forward for the industry.
However, David Smith, a property lawyer at Bishop & Sewell, questioned how the new regime would integrate with existing ombudsman and local authority schemes. He also raised concerns about enforcement, citing what he described as limited policing of current Client Money Protection and ombudsman requirements. Smith further questioned how the sector would absorb additional regulatory expenses.
Sean Hooker, head of redress at Property Redress, welcomed the announcement but noted that previous attempts at regulation had stalled. Sheila Kumar, chief executive at the Council for Licensed Conveyancers, urged the government to act quickly to regulate property agents.