National Trading Standards update Material Information

The National Trading Standards Estate and Letting Agency Team (NTSELAT) has produced new guidance for property agents to help you identify and disclose this information on residential property listings.

Material information is not a new requirement that our guidance is introducing, it is found in Regulation 6 of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).

The CPRs made it a criminal offence for businesses (including estate and letting agents) to omit or hide “material information” that might change the transactional decision of an average consumer. Any information provided in a residential property listing must be accurate and truthful, not hidden, and not misleading. The “transactional decision” includes deciding to enquire further, to view, or to purchase/rent a property. The term “average consumer” refers to someone who is reasonably well informed, reasonably observant, and circumspect.

The Guidance

The guidance provided by NTSELAT is not an exhaustive list of all potential material information, as this is specific to each property, it is an overview of what NTSELAT and the steering group stakeholders have considered to be the most common examples. The areas covered within the material information guidance can be seen below:

• Council Tax/DomesticRates

• Asking price/rent

• Deposits (lettings)/Tenure(sales; including detail of any inescapable costs, such as service charges, ground rents, estate rent charges etc.)

• Physical characteristics - property type, materials used in construction / construction type and number of rooms

• Utilities - electricity supply, water supply, sewerage, heating, broadband and mobile phone signal / coverage

The Role of Letting Agent

Letting agents should ensure that they proactively request material information to create the property particulars. Verification checks should also be carried out on the information that is provided to ensure that it is accurate (e.g., obtaining title information to confirm ownership, asking for copies of documents or verifying with local knowledge).

The material information should be prominently and clearly displayed in any property listing and should not be hidden, unclear or ambiguous as any of these failures could cause liability for a misleading omission which is a criminal offence under the CPRs.

It is also an offence to provide material information in an untimely manner; property listings should be updated, and interested parties informed, as soon as possible when material information becomes known or has changed - including on property portals, an agent’s own website, and any property particulars.

Property information questionnaires (PIQs) can be used to request the details needed to list the property. If an agent has their own questionnaires, then current documentation should be reviewed to ensure that material information is being obtained prior to the property being listed.

All residential property listings should include material information, including those on property portals, property agent websites, third party websites, social media, and printed material.

Verifying Information

Where possible throughout this guidance, reference has been added to where property agents and landlords might obtain and/or verify the information from to be included on a property advertisement.

In general, this includes some of the following sources:

■ Asking the landlord (verify the information against other sources ,where available)

■ H M Land Registry Title register and title plans
■ LocalAuthorities (through Local Authority search)
■ The Local Authority Planning Team / Portal

■ Water and Drainage Authorities (through Water and Drainage search)

■ The Coal Authority
■ The Environment Agency

However, there is nothing to prevent the landlord from obtaining the information (a copy of the title/lease) themselves and providing a copy to the agent at the beginning of the process, when in contract. This should also be subject to verification by agents to satisfy due diligence requirements.

Part B - Material Information

Part B information should be established for all properties and is considered material information generally where the information may involve some cost of maintenance or repair, knowingly impact a tenant’s enjoyment of the property, or affect the availability of relevant insurance products. This is to ensure consumers can make an informed decision whether to look further at any property.

This includes:

• The physical characteristics of the property

• The number and type(s) of room

• Utilities

• Parking

Part C Material Information

Part C information may or may not need to be established depending on whether the property is affected or impacted by the issue in question.

This section applies to properties affected by the issue itself, for example, because of the location of the property; generally, where there is an impact on the tenant’s enjoyment or privacy, or the availability and cost of relevant insurance products.

It is acknowledged that property agents may not be qualified or insured to make judgements on the following issues, and we recommend seeking expert advice where required or relevant.

This includes:
■ Building safety

■ Restrictions and rights
■ Flood and erosion risk
■ Planning permission and proposals for development

■ Property accessibility and adaptations
■ Coal field o rmining area