Protect us from agents

The government must act immediately to protect homebuyers and sellers from unscrupulous estate agents, Britain's leading consumer watchdog said today.

Which? is demanding mandatory regulation of estate agents to eliminate the worst abuses of the system, which leave some victims tens of thousands of pounds out of pocket. One option is an ombudsman scheme through which buyers can seek compensation.

Which? launched its campaign after an investigation into the industry. It uncovered estate agents giving preference to buyers who use their mortgage services; inventing offers to tempt buyers to increase their offer and failing to pass on all offers to sellers in writing.

Nick Stace, Which? director of campaigns, said: "Dodgy practice has left the public exposed to the unchecked, often illegal whims of rogue estate agents for far too long. The situation is ludicrous.

"With agents reaping huge financial rewards but offering very little service - and at worst extracting large sums of cash from consumers on false pretences - the Government must step in.

"The industry itself has called for better regulation - recognising the need to protect honest practices and individuals. Why are the regulatory powers shying away from providing consumers with the basic right to be protected?"

The Which? study follows an Office of Fair Trading report on estate agents published this year. While the OFT reported a litany of serious problems, it

concluded nothing should be done about it for at least two years. Its findings were rejected even by estate agents' organisations as a "damp squib".

Mr Stace added: "The recent OFT report wimped out. We are stepping in where the OFT has failed to ensure people get a fair deal when making the biggest purchasing decision of their lives."

The Which? report further reveals how poorly regarded estate agents are by the public. Only about one in 10 homebuyers and sellers questioned strongly agreed that estate agents could usually be trusted.

About 70 per cent thought they frequently-gave misleading information about properties. The same proportion believed estate agents and property developers frequently worked together to line each others' pockets.

More than half believed estate agents frequently invented offers from nonexistent buyers.

In conjunction with its campaign, Which? has set up a website (www.which.co.uk/moveit) that invites consumers to share their experiences of estate agents.

It also offers tips on how to get the most out of estate agents and warns of the problems consumers often encounter.