HC Deb 28 April 1965 vol 711 cc449-50
36. Mr. William Hamilton

asked the Minister without Portfolio if his proposals for law reform will include legislation dealing with the fees charged by estate agents in the conveyancing of houses.

The Minister without Portfolio (Sir Eric Fletcher)

The fees charged by estate agents are not at present subject to any control. In conjunction with the Government's general review of the cost of house purchase, this is one of the aspects being examined.

Mr. Hamilton

Is my hon. Friend aware that that Answer will give at least some satisfaction to hon. Members on this side of the House who regard this as one of the biggest rackets in the land today? Does my hon. Friend seek to defend a system whereby these people can charge not anything in proportion to work done but in proportion to the cost of the house? In view of the fact that house prices are continuously rising, how can this system possibly be defended any longer?

Sir E. Fletcher

I do not think it would be appropriate for me to comment on what my hon. Friend has said, but I repeat that this matter is being very carefully examined by the Government.

Mr. Grant

While noting that estate agents' commission is considerably higher than solicitors' charges in conveyancing matters, may I ask whether it could be made clear that people are not obliged to instruct estate agents but can always sell houses themselves? Is there not too great a tendency to interfere with the sanctity of contract?

Sir E. Fletcher

The hon. Member has quite properly drawn attention to the fact that no one wishing to sell a house is obliged to engage an estate agent.