Material information – what to know and what happens next

National Trading Standards Estate and Lettings Agency Team (NTSELAT) have published Parts B and C of their guidance on residential material information – with Part A launched in early 2022. The guidance covers residential sales and lettings across the UK.

Part A requires agents and property portals to publish details during market listing on matters including council tax and charges, tenure type and asking price.

Part B covers information that should be covered for all properties, – such as the type of property, the building materials used, the number of rooms and information about utilities and parking.

Part C is information that only needs to be established if the property is affected by the issue – such as flood risks, restrictive covenants or building safety matters.

RICS welcomes the move to provide more information upfront and has been working with NTSELAT for several years to develop the guidance so it can adequately protect and inform consumers' decisions. Having a more informed home buying, selling, and letting process is in the interest of all parties, and can support reducing the time period to secure a new home and reduce sales falling through – with the associated economic and social pressure that can come with that.

Whilst RICS recognises the principles to provide greater clarity on material information, we also recognise there are challenges within the new guidance. Material information is no substitute for professional advice, and consumers should be aware that the information collected as part of the new guidance may not accurately reflect the full extent of the property condition which would be covered through a home survey.

Most residential sales and letting agents are not conveyancers or surveyors, and while they may try and complete the information to their best ability, providing evidence and advice on matters such as building safety and associated costs should be treated with caution. Only a suitably qualified professional should ultimately be the person to provide such information to a consumer. There are also challenges over the level of adequate insurance provision for agents to complete such information.

We acknowledge that NTSELAT have recommended that sellers seek conveyancing for some of the information required but we are unsure how this will work in practice. We would welcome further conversations about mandating upfront information such as conveyancing or a property survey to create a more informed evidence base for consumers.

It is anticipated that it will take 12 months for the property portals to add the fields required to contain the information set out in the guidance. During this time RICS will work with members, regulated member firms, and the wider industry to review its implementation, update practice information and support members in ensuring consumers are protected while making one of the biggest purchases of their life.