NTSELAT reports that property agents must disclose referral fees
The National Trading Standards Estate and Lettings Agency Team (NTSELAT) has submitted a report to government recommending mandatory referral fee disclosure by property agents.
The Ministry of Housing, Communities and Local Government (MHCLG) asked NTSELAT to carry out a review of how referral fees work in the property market following its consultation into improving the home buying and selling process.
In its response to MHCLG, NTSELAT was in favour of improving the transparency of fees rather than banning them altogether.
On 2 October, NTSELAT submitted its report to MHCLG proposing that new legislation be introduced to make it compulsory for property agents to fully disclose information about third party referral fees to people looking to buy or sell a home.
NTSELAT says the aim of their proposals is to improve transparency across the property sector and help consumers to feel more confident in the services they receive from property agents.
The report’s key recommendations are for the government to:
- make referral fee disclosure mandatory
- launch a public awareness programme about hidden referral fees
- work with professional bodies and redress schemes to produce industry guidance