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Government Confirms Repeal Of The Property Misdescriptions Act

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http://simongompertz.blogspot.co.uk/2012/09/boost-for-property-websites.html

Boost for property websites

Property websites which help people sell their homes privately could be given a boost at the expense of traditional estate agents, after the government confirmed proposals to exempt them from a raft of regulations.

The Department for Business said it would repeal the Property Misdescriptions Act and allow agents to bypass rules in the Estate Agents Act if they simply put buyers and sellers in touch with other .

The Consumers Affairs Minister Jo Swinson said removing the "red tape" would "cut through bureaucracy and allow people to buy and sell more easily".

However, the Royal Institution of Chartered Surveyors (RICS) warned that home buyers could lose out from the change.

"Consumers could, perhaps unknowingly, be left responsible for undertaking their own detailed sale negotiations without the advice and guidance of a property professional," warned Peter Bolton King from RICS.

He said that buyers and sellers would find it tricky to tell the difference between genuine estate agents and websites which simply offer a list of homes, putting them at significant risk.

To fill the gap left once the Property Misdescriptions Act has been axed, the Office of Fair Trading has issued new guidance laying down how estate agents should behave.

Drawing on the Consumer Protection from Unfair Trading Regulations, the guidance explains how property details should be accurate, how agents should include important information to help buyers make decisions and how consumers should not be put under undue pressure to complete a transaction.

I don't think the estate agents are going to like this.

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So estate agents are going to change their name to businesses that facilitate private property sales?

Jo Swinson said:

“A flourishing housing market is hugely important to the economy, and one of the ways to boost it is to cut through bureaucracy and allow people to buy and sell more easily. This is why we are proposing to change the rules so that businesses that facilitate private property sales aren’t caught out by the regulations for estate agents.

“These intermediaries help buyers and sellers contact each other at a low cost, but don’t engage in other estate agent activities, so it’s unfair to expect them to go out and check all the property details of all the sellers on their websites. Reducing the regulations for these businesses will open up the market and increase choices for consumers looking to save costs when buying or selling a property.

http://news.bis.gov.uk/Press-Releases/New-proposals-to-boost-small-businesses-that-support-home-buyers-and-sellers-68006.aspx

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Wasn't this the piece of legislation that did for Tesco's attempt to run a portal allowing people to advertise their own homes for £99 inc a forsale board to put up outside?

If so this could be very interesting for EAs ;)

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I don't think the estate agents were taking any notice of the rules anyway.

Quite. No point in having regulations that are unenforced and unenforceable. All that happens is that legitimate businesses stay away whilst the sharks who couldn't care less are protected from competition. This is definitely a good move.

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Rightmove et al are going to make hay I'd imagine.

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Wasn't this the piece of legislation that did for Tesco's attempt to run a portal allowing people to advertise their own homes for £99 inc a forsale board to put up outside?

If so this could be very interesting for EAs ;)

I had forgotten about that,

I think you could be right.

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Rightmove et al are going to make hay I'd imagine.

Interesting point. There's no obvious big move in the Rightmove share price today so I guess the outcome isn't clearcut. If someone big gets into the business (e.g. Tesco come back in) then Rightmove will have to do likewise to try and make up for the cash they'll lose from the EAs that go under as a result.

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Interesting point. There's no obvious big move in the Rightmove share price today so I guess the outcome isn't clearcut. If someone big gets into the business (e.g. Tesco come back in) then Rightmove will have to do likewise to try and make up for the cash they'll lose from the EAs that go under as a result.

It depends on how agile they are and how much their business model is locked (systemswise and culturally) into B2B.

A high profile consumer orientated setup could decimate them as they struggle to cope with their EA customer base going titsup.

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Wasn't this the piece of legislation that did for Tesco's attempt to run a portal allowing people to advertise their own homes for £99 inc a forsale board to put up outside?

If so this could be very interesting for EAs ;)

Good memory:

"Shortly after launching, Tesco Property Market was closed[4]. It was deemed that Tesco were acting as an estate agent and therefore needed to comply with the Property Misdescriptions Act (1991) and would need to join the Ombudsman for Estate Agents scheme, which resulted in Tesco closing the venture."

http://en.wikipedia.org/wiki/ISold_estate_agents

So, is this potentially "it" as far as traditional Estate agency goes?

Edit being discussed on EAtoday comments:

http://www.estateagenttoday.co.uk/news_features/NEWS-FLASH-Government-to-reform-Estate-Agents-Act-and-ditch-PMA

Edited by cheeznbreed

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So, is this potentially "it" as far as traditional Estate agency goes?

Best watch the Tesco PR operation I think... If they come out with an announcement in the next few days then it's reasonable to assume they've been lobbying behind the scenes and are about to go for it big time. Otherwise, it could be a long wait whilst the decide whether or not they want to have another go.

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However, the Royal Institution of Chartered Surveyors (RICS) warned that home buyers could lose out from the change.

"Consumers could, perhaps unknowingly, be left responsible for undertaking their own detailed sale negotiations without the advice and guidance of a property professional," warned Peter Bolton King from RICS.

:lol:

In other news, the american tobacco association says smoking 20 a day makes you attractive, smell good and experience great sex.

RICS, now theres a bunch of scumbags.

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Best watch the Tesco PR operation I think... If they come out with an announcement in the next few days then it's reasonable to assume they've been lobbying behind the scenes and are about to go for it big time. Otherwise, it could be a long wait whilst the decide whether or not they want to have another go.

+1

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"Property professionals"

BNuahahahah...hahahahah.#

So soddingly overpriced service for what it is.

Now, how about the solicitor's process - it just seems arcane, and odd. And lenghty. Could that be simplified?

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However, the Royal Institution of Chartered Surveyors (RICS) warned that home buyers could lose out from the change.

"Consumers could, perhaps unknowingly, be left responsible for undertaking their own detailed sale negotiations without the advice and guidance of a property professional," warned Peter Bolton King from RICS.

:lol:

In other news, the american tobacco association says smoking 20 a day makes you attractive, smell good and experience great sex.

RICS, now theres a bunch of scumbags.

Quite - if you have ever had a RICS report it always states that the report is guidance only and the buyer needs to seek additional expertise if required to satisfy themselves that the building is sound. None of the sharks take responsibility for any advice anyway.

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Good memory:

"Shortly after launching, Tesco Property Market was closed[4]. It was deemed that Tesco were acting as an estate agent and therefore needed to comply with the Property Misdescriptions Act (1991) and would need to join the Ombudsman for Estate Agents scheme, which resulted in Tesco closing the venture."

http://en.wikipedia....d_estate_agents

So, is this potentially "it" as far as traditional Estate agency goes?

Edit being discussed on EAtoday comments:

http://www.estateage...t-and-ditch-PMA

Assuming Tesco or others go for the same business model again the £199 fee (that Tesco proposed I mistaken remembered £99) would need 5,025 listings to take £1m in revenue so ultimately this would have to be an addition area for an existing on line sales platform in order to keep costs down and make this profitable (excluding opportunity to flog home insurance or carry removal advertising etc). The potential profits don't look huge unless the (human) costs are kept low and they do lots of business. Mind you Tesco would probably be happier with an extra £500k profit now than when they were looking at this last.

As eBay are already big in 2nd hand car sales they could be another potential candidate as could amazon (less likely).

Or did Tesco plan to put loads of EAs out of business so they could use the former EA premises for more Metro stores :ph34r:

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"Property professionals"

BNuahahahah...hahahahah.#

So soddingly overpriced service for what it is.

Now, how about the solicitor's process - it just seems arcane, and odd. And lenghty. Could that be simplified?

It could be quick if Solicitors just did what they were paid to do, but most sit on paperwork, pretend things take ages and spend time counting their fees.

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Best watch the Tesco PR operation I think... If they come out with an announcement in the next few days then it's reasonable to assume they've been lobbying behind the scenes and are about to go for it big time. Otherwise, it could be a long wait whilst the decide whether or not they want to have another go.

If the legislation needs to be changed then it will require parliamentary time so won't happen quickly.

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Best watch the Tesco PR operation I think... If they come out with an announcement in the next few days then it's reasonable to assume they've been lobbying behind the scenes and are about to go for it big time. Otherwise, it could be a long wait whilst the decide whether or not they want to have another go.

I think they are more savvy than that, they would wait a while to let the dust settle and make a big PR push when they were ready to launch, besides this is only an announcement that they are going to swing the axe not that they have done it.

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Assuming Tesco or others go for the same business model again the £199 fee (that Tesco proposed I mistaken remembered £99) would need 5,025 listings to take £1m in revenue so ultimately this would have to be an addition area for an existing on line sales platform in order to keep costs down and make this profitable (excluding opportunity to flog home insurance or carry removal advertising etc). The potential profits don't look huge unless the (human) costs are kept low and they do lots of business. Mind you Tesco would probably be happier with an extra £500k profit now than when they were looking at this last.

As eBay are already big in 2nd hand car sales they could be another potential candidate as could amazon (less likely).

Or did Tesco plan to put loads of EAs out of business so they could use the former EA premises for more Metro stores :ph34r:

Even at £500, it would be a steal compared to the traditional route. Is the fee upfront, or paid upon sale?

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However, the Royal Institution of Chartered Surveyors (RICS) warned that home buyers could lose out from the change.

"Consumers could, perhaps unknowingly, be left responsible for undertaking their own detailed sale negotiations without the advice and guidance of a property professional," warned Peter Bolton King from RICS.

:lol:

In other news, the american tobacco association says smoking 20 a day makes you attractive, smell good and experience great sex.

RICS, now theres a bunch of scumbags.

:lol: might have to be a 40 a day man then get twice as much pleasure

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Even at £500, it would be a steal compared to the traditional route. Is the fee upfront, or paid upon sale?

It's paid up front, so the people who don't sell are subsidising those that do.

(Argue amongst yourselves as to whether that’s fair or not)

tim

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Even at £500, it would be a steal compared to the traditional route. Is the fee upfront, or paid upon sale?

Up front as they were not taking responsibility for selling your property just providing you the means to advertise it.

I assume it would have been for a fixed period (6 months???) so if you didn't sell within that time period you would have to pay to advertise again.

If some of the less popular portals are suffering a bit, one of them might jump first and allow private sellers to advertise.

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It's paid up front, so the people who don't sell are subsidising those that do.

(Argue amongst yourselves as to whether that's fair or not)

tim

It would just encourage them to price realistically to not pay the listing fee again! Much better for encouraging price discovery.

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Up front as they were not taking responsibility for selling your property just providing you the means to advertise it.

I assume it would have been for a fixed period (6 months???) so if you didn't sell within that time period you would have to pay to advertise again.

If some of the less popular portals are suffering a bit, one of them might jump first and allow private sellers to advertise.

I'd hope that's how it would work, fee-wise. On the face of it at least, the property buying/selling landscape is going to change significantly.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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