But the unlikely candidate has faced scepticism from MPs over whether it will be able to cope with effectively carrying out enforcement action to tackle dishonest behaviour, a reputation which has plagued the industry for many years.
This week we ask our industry experts if they think the change in the regulatory body will improve standards in the sector or if, as Labour MP Stella Creasy puts it, bad practices could be allowed to prosper.
Dean Mason, practice principle at Masons Financial Planning, questions what qualifications Powys can boast to make it the most suitable candidate for the task
Peter Speak, group compliance, Countrywide wants to see Powys flex the regulatory muscle it has been given by introducing a register of estate agents and a minimum standard for enrty
Rob Clifford, chief executive of Century 21 UK and group commercial director at Shepherd Direct Group, thinks the more important question is not who regulates the sector and where from, but how effective the regulation is
Dean Mason, practice principal, Masons Financial Planning
So just when the authorities should be keeping a closer eye on these areas of financial services one has to question the wisdom of transferring the already toothless regulation of estate agents to a single council in mid Wales?
Quite what was required by Powys County Council to win the tender for this and what experience those responsible have with dealing with agents in the major cities in a seller’s market would be interesting to know. I wish them luck.
Essentially an estate agent’s role in the process is very simple but they are disproportionately influential. As a seller you choose to employ them for an agreed fee, they get potential buyers to view the property, a price is agreed, the buyer is qualified, they make an offer and hopefully it’s accepted.
At this point the agent’s role effectively becomes one of ‘chaser’ while everyone else does the hard work. They are unique in the process in that they have little professional liability for their actions. It would be very simple to outlaw gazumping and similar sales progression practices by just making the offer made on a property legally binding as in Scotland.
I hear some agents in London are actually charging buyers for viewings now.
Time will tell but this seems a huge gamble in an area where too much slack is already granted and stronger regulation is needed.
Peter Speak, group compliance, Countrywide
This is a positive step forward in regulating the estate agency sector and helping to protect consumers from rogue estate agents which give an unprofessional image of this profession.
Powys Trading Standards will become a major contact for the whole industry and will be able to provide help and guidance to estate agents from across the country.
They have the ability to improve the estate agency sector and how it operates.
However this will depend upon how much resource Powys Trading Standards is able to put into fully implementing the powers it has access to.
At Countrywide we believe a tougher stance should be taken in regulating the estate agency sector. It is essential for estate agents to have a good understanding of industry regulations and best practice which is why we are an active member of The Property Ombudsman scheme and support the concept of a register of agents along with minimum standards of entry into the estate agency industry.
We believe other estate agencies should follow suit in support of a register and ensuring their employees achieve an industry recognised qualification and Powys Trading Standards could play a key role in support of these initiatives.
Rob Clifford, chief executive of Century 21 UK and group commercial director at Shepherd Direct Group
The switch from the Office of Fair Trading to both Powys Council and the HMRC is a relatively insignificant move; in effect it is one department of the civil service transferring its work to that of another.
I therefore suspect it will have little effect on the industry given the regulatory hurdle is not being dramatically raised and that it could well produce efficiencies in the delivery of the service.
If the industry is worried about the location of this service being in one place then I would point to the example of the DVLA based in Swansea.
The more significant issue is whether the former OFT regime was appropriate and effective. Consumers might say that the industry, particularly the lettings sector, lacks regulatory controls and lacks consistency – and this is probably a fair argument.
After all there are umpteen examples of lettings agents charging fees which are difficult to reconcile and justify perhaps resulting from the lack of market controls.
A counter-argument is that it is a vibrant sector with bags of consumer choice in terms of which agent to appoint.
There is a strong case for estate and letting agents to step up and get their own house in order which would help protect against the imposition of a statutory regulatory regime.
I am not a fan of explicit barriers to entry but it’s clear that some agents are devoid of market experience while some operate dishonestly or apply sharp practice. Flushing these out would be good start.
