RICS responds to House of Lords calls for property agent regulation

The House of Lords Industry and Regulators Committee has published its report on the Regulation of Property Agents (RoPA), calling on the government to take forward the recommendations of Lord Best’s report from 2019.

RICS gave evidence to the Committee, highlighting the need to avoid duplication of regulation and standards and work with professional bodies to utilise well-established regulatory frameworks. We also welcome discussions on the introduction of minimum professional qualifications.

The inquiry also follows amendments placed forward by Matthew Pennycook MP, Shadow Minister for Housing & Planning to implement the recommendations of the RoPA report as part of the Leasehold and Freehold Reform Bill.

Among the Committee’s recommendations include:

• Legislation to establish a new regulator;
• Mandating qualifications for property agents;
  
• Introducing codes of practice underpinned by a new regulator to drive up standards for consumers;
  
• A Memorandum of Understanding between any new regulator, National Trading Standards and the redress schemes to ensure cooperation and avoid duplication;
  
• The Government to approve a single ombudsman for property agents, rather than two competing schemes as currently;
  
• The new regulator to fund its activities through fees, charges or a levy on those it regulates.

Luay Al-Khatib, RICS Director of Knowledge and Practice who gave evidence in the House of Lords responded to the report saying:

"We are glad to see a growing level of recognition, across the political spectrum and industry, of the importance of professionalism, minimum standards and competency within housing, and the wider property sector. We welcome the report from the House of Lords Committee which identifies the need to expand professionalism in the regulation of property agents. 

“As well as playing a critical role in the safety and economic management of our national housing stock, property agents have had a significant impact on the day-to-day lives of millions of families who live in leasehold and private rented sector homes. 

“RICS members are subject to independent regulation, holding them to account against high standards of ethics and technical competency. This delivers exactly the sort of professional framework that Lord Best and the House of Lords Committee report, is calling for. 

“However, RICS only has authority over its membership, so there is not a consistent minimum standard across the wider property agency sector. This disjointed picture leads to confusion and low levels of public confidence. 

“For this reason, RICS has been working consistently with industry and Government to develop common industry standards in areas such as housing block management and service charge management.

"We hope the Government will work closely with us to create a future roadmap for better regulation of agents that has professionalism at its heart and builds on the best-in-class structures we have created.  This will maximise cost-effectiveness, and pace of transition and will avoid duplication."