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Fees charged by agents in UK property market to be examined

The Royal Institution of Chartered Surveyors, whose role is also to promote best practice, said the consultation is needed after a number of issues around the transparency of fees charged by agents have been raised by property professionals and the press.

The process will examine fees paid to agents in the residential, commercial and lettings sectors. This will include the declaration of insurance renumeration and commissions, service charges in leasehold properties, commission on letting renewals, commission on home information packs and energy performance certificates, valuation fees and arrangement fees for security loan valuations.

It is hoped that once the evidence is gathered the organisation can establish a foundation from which both the consumer and the industry will benefit. This will be done via its Transparency Working Group that was set up last year and is seeking responses by July.

'The issue of transparency has been thrust into the limelight in a whole range of sectors. It is, therefore, timely that RICS is launching this initiative on transparency in relation to professional fees,' said Peter Goodacre, RICS president and chairman of the TWG.

He urged the industry to respond. 'Whilst RICS is responsible for the mechanics of the project it is crucial that other organisations, professionals working in the property sector and individual consumers and consumer organisations inform the discussion and enable us to collect robust evidence about what is happening. I invite as many individuals and organisations to respond to the consultation as soon as possible,' he added.

In addition the group intends to meet with key stakeholders and, where practical, hold public select committee style meetings, where it can question stakeholders and examine their evidence.

The RICS consultation will be conducted as the Office of Fair Trading continues its own probe into the estate agency industry. The OFT is also known to be focusing on referral fees and mark-ups.

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