OFT considers sale without agents (From Leigh Journal)

OFT considers sale without agents

11:17am Thursday 18th February 2010

The trading watchdog is expected to look at whether homeowners can cut out estate agents when it publishes a market study into the home buying and selling process.

Research carried out by the Office of Fair Trading found that consumers are becoming increasingly open to ways of buying and selling property that avoid using estate agents.

The OFT said that although the majority of sellers still used an estate agent, more than a third initially considered selling their home privately, using an online estate agent or selling their property at an auction.

The report is expected to look at the new ways of buying and selling property that may develop in future, particularly through the use of the internet, and whether the current market is open to competition and innovation.

It is also expected to consider the level of consumer protection that these new selling models would require.

But the OFT is expected to stop short of heavily criticising estate agents, or calling for greater regulation of the sector.

Instead, its report is expected to say that most consumers are broadly happy with the service they receive from them.

Previously published research, undertaken as part of the study, showed that 88% of buyers and sellers said they were satisfied with the service they received from estate agents.

The majority of consumer complaints relating to the home buying process were also about other buyers or sellers or their solicitors, rather than the estate agent involved in the transaction.

However, a survey of Trading Standards found that in 2008, one in four estate agents was failing to comply with relevant regulations when they were first visited by officers, suggesting the OFT may suggest measures to improve this.