A survey of 537 estate agents across England and Wales has revealed overwhelming support for increased government regulation of the property sector, with 92% backing plans for mandatory licensing and professional qualifications.
The research, conducted by GetAgent.co.uk, found that 48% of agents reported encountering rogue or substandard agencies operating within their local markets. The findings come as the industry faces ongoing scrutiny over professional standards and consumer protection.
Industry concerns
When asked to identify the most common characteristics of substandard agencies, poor knowledge of property law and regulation ranked highest at 21%. Aggressive or unethical sales practices and misleading marketing or withholding important information each accounted for 16%, while hidden fees or unclear charges and inadequate staff training both represented 15% of responses.
The survey identified reputational damage as the primary concern among agents, with 31% citing damage to trust in estate agents as the most significant impact of rogue operators. A further 16% highlighted the competitive disadvantage faced by agencies maintaining higher standards.
Agents also noted consequences for property sellers, including prolonged or complicated sales processes (14%), unnecessary or unclear fees (14%), increased risk of sale failures (13%), and lower achieved sale prices (9%).
Regulatory measures
A legally enforceable code of conduct and minimum professional qualifications ranked joint top at 16% each as the measures most likely to improve industry standards. Mandatory licensing and stronger enforcement with financial penalties also received significant support.
However, agents acknowledged potential challenges in implementing comprehensive regulation. Increased costs for agencies ranked as the primary concern at 23%, followed closely by worries that regulation could become a procedural exercise at 22%. Administrative burden and compliance difficulties for smaller agencies each accounted for 15% of concerns.
Despite these reservations, one in five agents believe mandatory licensing and professional qualifications would bring no significant downsides. Only 7% of respondents believe existing regulation is sufficient, while 2% consider the industry already over-regulated.
Colby Short, Chief Executive of GetAgent, said: “Good estate agents work hard to build trust with sellers, provide sound advice and deliver the best possible result. Unfortunately, it only takes a relatively small number of operators falling short of those standards to damage confidence in the wider profession.”
The findings reflect broader concerns within the property sector about professional standards, similar to recent regulatory scrutiny faced by property portals. While the debate continues over the optimal regulatory framework, the research suggests strong appetite within the industry for measures that could address substandard practices while maintaining competitive market conditions.
The survey results provide insight into agent perspectives as government considers potential regulatory reforms for the estate agency sector in England and Wales.
