December 2007 / January 2008

Is real reform all about playing with our livelihoods?

THE Government’s latest missive to the industry about the introduction of Home Information Packs has backfired spectacularly.

In an e-mail sent by the department of Communities and Local Government to estate agents, it states that HIP providers had reported a smooth implementation and there had been good feedback about HIPs from agents and consumers.

It cited a list of benefits, from kick-starting the legal process early, to quicker searches and less abortive costs.

Inevitably, their comments have provoked an outcry, as reported on the front page of EAN’S last edition, with the National Association of Estate Agents accusing the CLG of ‘blatant spin’ and producing statistics to show the number of properties on the market and subsequent transactions are way below the seasonal norm, even taking into account interest rate rises.

The only conclusion is that HIPs are in part way to blame.

However, what no-one seems to have picked up on is the fact that the CLG have made no reference to environmental benefits in their list of so-called plus points that have arisen from the introduction of HIPs and Energy Performance Certificates.

What I would like to know is just how many sellers have rushed out to change their radiator thermostats and lightbulbs or added lagging or loft insulation, in the hope they can reduce their average E rating to possibly a D or C to help them sell?

Conversely, how many people are making home improvements once they have bought a property, to make it more energy efficient? Very few, as far as we can make out. In fact, in our own survey for haart, we found that only one in 10 people were actually interested in seeing the contents of a Pack. Home buyers are choosing to ignore them and see them as irrelevant.

The CLG e-mail went on to talk about the need for ‘a step change in home buying and selling with real reform in a system that has not changed significantly for a generation or more by placing the interests of the consumer at its heart’. If they really believe that, why don’t they listen to what estate agents have been saying for years?

Real reform is triggered when appropriate legislation is introduced in the first place, and not ignoring the backlash when it all goes wrong.

Real reform can only come about if all properties have a survey up front, if people are penalised for backing out of transactions and if all estate agents are qualified and licensed to operate.

Real reform is not blaming market conditions, financial markets and interest rates for the collapse in the housing market but accepting responsibility for causing some of the problems by introducing HIPs. When people are fighting for their livelihoods, we have other people playing with those same livelihoods. Is that what real reform is all about?

Putting our own house in order

ASIDE from the issues relating to the poor implementation of HIPs and the ensuing fallout in the housing market, we as an industry still have to address the many underlying problems that are still inherent within our profession.

At long last, the Government seems to be moving a step closer to making it compulsory for all estate agents to belong to redress schemes.

It is just a pity they did not simply recognise the Ombudsman Scheme for Estate Agents, of which we are members, as the competent authority in the first place, as having multiple ombudsmen covering the same ground is simply not helpful.

The Department of Business, Enterprise and Regulatory Reform has announced a consultation on its new proposals outlined in the Consumers, Estate Agents and Redress Act 2007.

The consultation ends on February 1, 2008.

In this 80-page document, available on the Office of Public Sector Information website, it highlights proposed amends to the Estate Agents Act 1979.

Of particular interest is Section 21A, which states any estate agent, in their duty of care, must keep records on any transactions for a minimum of six years. Agents who breach any imposed rules could be prosecuted, and even imprisoned, for doing so.

Other parts of the Act will give the Office of Fair Trading and Trading Standards more teeth when it comes to producing warning orders and I suspect we will see more prohibition orders with probably hundreds of estate agents effectively being banned from trading.

It’s about time our profession cleaned up its act and we got rid of the rogue agents who give estate agency a bad name.

But while I welcome this Act in principle, it still doesn’t go far enough and I continue to maintain that compulsory licensing is really the only long-term solution.

Why it’s a good time to grow...

GIVEN that the housing market is somewhat unsteady at the moment, it may seem an odd time to embark on the acquisition trail.

But being a large and financially sound organisation, Spicerhaart has been in a fortunate position to buy another estate agency, adding a further 12 branches to our business as we push further north and into South Yorkshire.

We’re delighted to welcome the Haybrook estate agency into our group, recognising the excellent synergy and work undertaken by this well-run organisation, which has eight branches in Sheffield and others in Rotherham, Doncaster, Barnsley and Swinton.

I would like to pay tribute to the outgoing owners Martin Beaumont and Keith Peet who share so many of the innovative and forward-thinking ideas that have helped Spicerhaart’s other estate agencies — haart, Spicer McColl, Darlows and Felicity J Lord — become household names in the areas they operate.

It would be easy to batten down the hatches and sit tight as we wait for the market to improve. But our view is that it’s not every day that such a well respected agency with its own call centre operation comes onto the market.

We’re expecting a smooth transition — in the same way we incorporated Woolwich Property Services, Darlows and part of Cornerstone into our business over the years. And who knows, this may even be the first of many acquisitions as we continue to explore the opportunities for further expansion, and develop our services even further, as we bring our brands to new markets across the UK.

Wishing you all a prosperous Christmas and New Year.