Property sector to come under scrutiny

Consumers, industry bodies, government and other stakeholders will be able to contribute to an independent review to reform the residential property sector. The recommendations will be placed in the public domain with the hope that government will consider them seriously and implement them over a period of time.

The review will be chaired by Sir Bryan Carsberg, former Director General of the Office of Fair Trading, and will focus on the standards, regulation, and redress of the residential sector and the buying and selling process.

Particular attention will be given to Government intervention in the property market with a key focus on the frameworks surrounding Home Information Packs (HIPs) and Energy Performance Certificates (EPCs).

Along with written submissions, the consultation will be marked with a series of public select committee style hearings to question evidence provided by key stakeholders.

Sir Bryan will:

Examine current practices in residential buying/selling and letting/renting from a professional, consumer and government perspective.

Consult widely and transparently with stakeholders from all groups with an interest in residential property.

Highlight the pressure points in processes, regulatory frameworks and markets that work against consistency, innovation and consumer satisfaction.

Note and analyse market developments and opportunities both within and outside existing frameworks.

Sir Bryan said: “Recent government initiatives raise interesting questions about attitudes to the residential property market.

The frameworks surrounding Home Information Packs and Energy Performance Certificates have introduced significant new regulatory and redress structures into relatively low risk aspects of the property transaction while leaving consumers in other parts of the sector, that may carry higher risks, apparently exposed.

This contrasts with the government’s approach to regulation elsewhere – particularly in the financial sector – where a more holistic approach to the control of risk has been adopted.”