OFT launches market study into home buying and selling

The OFT has formally launched its market study into home buying and selling, following two months of discussion with interested parties on its scope.

The study will take a comprehensive look at the market for home buying and selling services. It will consider:

competition on price and quality between service providers, principally estate agents;

the prospects for entry by new business models, including Internet-based models;

whether the existing regulatory framework provides the right balance between protecting consumers who are buying or selling a home and ensuring that the market remains open to competition and innovation;

the relationships between estate agents and other service providers such as mortgage brokers, surveyors, solicitors and other professional advisors.

The study will cover the whole of the UK, while recognizing the significant differences in how the market works in Scotland.

Heather Clayton, Senior Director of Infrastructure, said: 'With the economic downturn, we need to ensure that consumers receive a good service when buying or selling a home, from a market that is competitive, innovative and well-functioning.

'We have had constructive discussions on the scope of this study with interested parties from across central and devolved government, consumer groups and the industry. This means we are starting the study with a clear understanding of the key issues.'