Estate agents back licensing

GUERNSEY estate agents would back the creation of a licensing system to regulate the industry. It follows a report by the UK Office of Fair Trading, which concluded that there was widespread dissatisfaction with estate agents. The OFT has warned agents that they could be forced to follow a code of conduct if they did not improve their standards.

And it recommended changes to the Estate Agents Act to protect consumers and drive out those 'unfit to practise'.

But the report shied away from imposing a compulsory licensing scheme, favouring 'better and more widespread self-regulation'.

'It is certainly fair to say that estate agents have been the cause of many complaints over the years, rather more so in the UK than locally. In a small, close-knit community such as Guernsey, any firm, estate agency or otherwise, must take pride in the service it provides to survive and uphold its reputation - bad press locally will almost certainly damage a company's local standing and business,' said Swoffers director Spencer Noyon.

There had undoubtedly been times when people have had justifiable cause to complain, he admitted. 'House buying is a stressful business at the best of times and even the smallest problem can be the cause of massive disputes between a buyer and seller. More often than not the estate agent, who is in the middle of the dispute, is the one who bears the brunt of the anger or upset, mostly through no fault of their own,' said Mr Noyon.

'It is fair to say that most agents I know take pride in their jobs. The commitment has to be 100%, often involving long hours, sometimes seven days a week, and can be as stressful for the agent as for other parties involved.'

Cooper Brouard director Matthew Brouard believed local agents did the best they could and that they were above board, but said that that was not to say they did not make mistakes.

'Guernsey is a very competitive environment for estate agents and I think people get what they pay for. It has been proved in the past that cutting rates is unsuccessful for agents,' he said.

'We are often pressured on our fees but are very reluctant to move them because we don't make any money. We are making a lot of commission but have a lot of abortive work as well.

'If an effective licensing system could be brought in, the majority of agents would not be against that because they have nothing to hide,' he said.

Geoff Mauger of Goldridge Stone believed there was a natural form of self-regulation in a small island community as any word of malpractice by an agent would soon spread. Good reputations are hard won but a bad one can be obtained very quickly, he said.

'The concepts of ?value for money? can be argued about long and hard but I do feel that the industry standards are generally much higher here.'

Richard Fox, a residential director at Martel Maides, said the report levelled criticism at the profession of estate agency which will, unfortunately, serve to reinforce some people's prejudices.

'Many of the recommendations were actually proposed by people working in the industry who would like to see greater regulation controlling the more salubrious end of our business,' he said.

'We would certainly like to see

more effective enforcement of legislation,' said Mr Fox.

Regrettably, the popular caricature of 'the estate agent' was an easy whipping boy, said Mr Fox, who did not believe much of the dissatisfaction was warranted. But he agreed some criticisms were valid.

'Communication with clients is not always as it should be and it is a discipline that many professionals could improve on. It can't be legislated for, but business managers know that a contented client leads to business growth.'

Consumers are advised in the report to shop around. 'We agree. Our business within a small community depends on personal introductions and direct recommendations,' said Mr Fox.

He believed closer scrutiny of complaints concerning accusations of vested interest were warranted.

'There are genuine reasons for fearing that those agencies involved in selling financial services do not always give dispassionate advice to their clients. Any vendor or purchaser who wishes to avoid the potential for conflicts of interest should choose an independent estate agent who has no connection with mortgage and insurance brokers,' said Mr Fox.

'We believe that the profession of estate agency is held in higher regard on the island than on the mainland and that the levels of service are the reason for this,' he said.

He advised buyers and sellers to do business only with firms that were accredited members of the National Association of Estate Agents or the Royal Institute of Chartered Surveyors.

The report was the result of a 21-month inquiry into the way estate agents treated home buyers and sellers in England and Wales and followed a rise in complaints about service.