The National Association of Estate Agents (NAEA) has expressed its support for concerns raised in the House of Lords at the second reading of the recently introduced Consumers, Estate Agents and Redress Bill. Issues such as regulation, minimum standards of competency, redress for residential lettings and the need for a single industry redress scheme were among those raised by the noble Lords at the debate. The NAEA strongly urges the Government to take action on these points.
The NAEA recently raised concerns that the proposed legislation deals with after-the-event compensation rather than prevention. These were mirrored yesterday and summed up by The Earl of Caithness when he commented: "The Bill ... is only partially welcome in that it does not complete the job. It shuts the stable door after the horse has bolted. When you seek a full redress system and apply to the ombudsman you already have a complaint. I am trying to prevent the complaint in the first place and thereby give greater protection to the consumer." The NAEA would like to see the Government address this issue by bringing in regulation in the form of compulsory membership of an industry body for all estate agents.
Lettings was recognised during the debate as an area needing attention. Lord Razzall commented: "There is no reason in principle why the practices that need to be regulated, and which apply equally to residential selling, should not also apply to residential letting." Meanwhile, concerns were raised over the confusion that could occur if a number of redress schemes were put in place. Baroness Wilcox posed the question that if there is likely to be more than one scheme "How will consumers be reassured that both ... are of the same high standard?"
NAEA President Charles Smailes comments: "We are extremely grateful to the noble Lords who yesterday expressed concerns that we have already raised. Whilst we are in support of the Bill as far as it goes, it does not do nearly enough for consumers or the industry in its current form. We support the noble Lords in the desire to see minimum standards put in place, the area of residential lettings recognised for redress and a single redress scheme implemented, which we believe should encompass the existing Ombudsman for Estate Agents scheme."
