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.
‘Price on application’ in property listings deemed unlawful
National Trading Standards Estate and Letting Agency Team (NTSELAT) has today published its opinion*, developed with the Competition and Markets Authority (CMA), that the use of ‘POA’ or ‘price on application’ in property listings (principally sales listings) contravenes consumer protection legislation.
NTSELAT’s opinion is that the use of ‘POA’ or ‘price on application’ in relation to a listing on a property portal or an agent website is likely to be misleading as it withholds – or in some cases masks – the asking price from consumers. The property’s price is information which the average consumer needs in order to make an informed transactional decision, such as to make enquiries about the property, conduct further research or arrange a viewing.
Material Information for Property Listings Announced
Yesterday, Trading Standards and the Government jointly announced compulsory new data which must appear on property listings.
A property's council tax band or rate (for lettings and sales) and the property price and tenure information (for sales) must be included on all property listings by the end of May.
The changes signify the first phase of a project by the National Trading Standards Estate and Letting Agency Team (NTSELAT) which defines exactly what constitutes ‘Material Information’ for property listings.
Part A of this three-phase project includes information that is considered “material” for ALL properties. A further two phases are being developed, which will incorporate further material information such as restrictive covenants, flood risk and other specific factors that may impact certain properties.
The property portals (Zoopla, Rightmove, Boomin, On the Market, etc. will start to implement “Data Fields” for this additional information over the next few weeks and if they are left empty by an agent, this will be flagged on the listing so consumers can see what information is missing.
This will link to advice on why that information is important and how it may be obtained.