The UK real estate sector is witnessing a significant transformation with the release of comprehensive guidance for sales and letting agents on material information disclosure in property listings. Developed by the National Trading Standards Estate and Letting Agency Team (NTSELAT) in collaboration with industry leaders and major property portals like Rightmove and Zoopla, this guidance aims to address the need for clarity in property listings.
The guidance is split into three parts. Part B covers essential details for all properties, including property type, construction materials, room count, and information on utilities and parking. Part C focuses on specific issues like flood risks or restrictive covenants, applicable only to affected properties. This follows Part A, introduced last year, which includes council tax, property price or rent, and tenure information.
Historically, agents were bound by the Consumer Protection Regulations to avoid omitting material information from property listings. However, the lack of a defined list of essential information often left agents at risk of enforcement action. This new guidance aims to resolve this ambiguity, ensuring agents can meet their obligations effectively. The guidance suggests engaging conveyancers early in the sales or letting process, reducing transaction times and fall-throughs caused by late-emerging information.
Sellers are advised to involve conveyancers early to ensure that validated information is available for marketing, addressing potential issues like restrictive covenants or boundaries proactively. Buyers and renters will notice new data fields on portals, with any missing information clearly flagged, enhancing transparency and informed decision-making.
In support of the new guidance, NTSELAT has published short guides for agents, sellers, landlords, buyers, and tenants, and plans to deliver a series of webinars with steering group members.
A survey in 2021 revealed strong support among agents for mandatory disclosure of material information, with 91% agreeing that a defined list would enhance industry clarity. James Munro, Senior Manager of NTSELAT, emphasized the guidance’s role in raising industry standards and ensuring agents can access necessary information efficiently, ultimately fostering greater consumer trust.
Lesley Horton, Deputy Ombudsman at The Property Ombudsman, highlighted the consumer benefits of accessible high-quality information, predicting a decrease in transaction fall-throughs and a boost in agent confidence about the information they provide.
The guidance has been lauded as a collaborative effort across the property sector, providing clear directives to property professionals about the information needed for property listings and transactions. This clarity is expected to aid in resolving complaints and raising industry standards.
In summary, this new guidance marks a pivotal change in the UK property market, promising improved transparency, consistency, and efficiency in property transactions for agents, buyers, sellers, and renters alike.