Wednesday, December 06, 2006
[RealEdge] BT : Estate agents least trusted in UK after politicians: poll
| Published December 5, 2006  | |||
| Estate agents least trusted in UK after politicians: poll Majority of home owners blame them for inflating property prices (LONDON) A majority of Britons blame residential real estate brokers for inflating property prices, and say the profession is one of the least liked in the UK, according to a survey compiled by Which?, a consumer rights group. Estate agents, as residential brokers are called in the UK, scored 2.2 out of seven for trust in an online survey of 1,568 current or former homeowners, released yesterday. A score of one was the lowest rating of trust. Respondents judged brokers the second least-trustworthy professionals after politicians from seven choices, including doctors, teachers and attorneys. Ninety-four per cent of respondents said agents overvalue properties, and about 70 per cent said they suspect agents invent or falsify details and collude to keep sales prices high. Disputes between consumers and brokers, said Louise Restell, who is leading Which's efforts to improve oversight of brokers, begin with brokers 'who are downright dishonest or those who are untrained and don't know what they're doing.' The release of the survey coincides with a second vote yesterday by lawmakers in the House of Lords, the upper house of the UK Parliament, on a Bill to help compensate consumers who lose money to unscrupulous brokers. If it passes the Lords it will go to the House of Commons for a vote. 'We welcome what's in the Bill, though it still doesn't go far enough, Ms Restell said. 'It only deals with things when they go wrong.' The lobby representing brokers also wants Prime Minister Tony Blair's government to increase regulation of the industry. The Consumers, Estate Agents and Redress Bill will require brokers to pay into a programme to compensate consumers and increase the inspection and punitive powers of consumer protection bodies. It will also broaden prospective homebuyers' right to a 'cooling off' period during which they can cancel their contracts, according to the Department of Trade and Industry, which introduced the Bill. Successive UK governments have shied away from licensing brokers, saying that would reduce competition, increase costs to consumers and meddle in consumers' private investment decisions. In Britain, almost anyone can act as a real estate agent. Brokers are not insured or tested for competency, even as they handle transactions that often represent the biggest investment a consumer may make, said Peter Bolton King, chief executive officer of the National Association of Estate Agents. 'Time and time again we have told the government what needs to happen,' he said. 'It's better to prevent the crime than punish it.' Since April, the National Association of Estate Agents has required its members to belong to an Ombudsman programme, which sets minimum standards for house brokers. The survey coincides with continued growth in UK home prices. In November, house prices rose at the fastest annual pace in two years as the average cost of a property in London's Kensington and Chelsea topped £1 million (S$3.05 million) for the first time, Rightmove plc said. Problems uncovered by the consumer rights lobby include misrepresentation of properties, disparities in house valuations of as much as 63 per cent, price fixing and agents hiding commission payments in contracts, Ms Restell said. The survey was carried out for Which? by an unnamed market research company that questioned former or existing homeowners between May 26 and June 1. No margin of error was provided. - Bloomberg | |||
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