HC Deb 05 June 1972 vol 838 cc24-5
29. Mr. Clinton Davis

asked the Secretary of State for Trade and Industry what representations he has received from the Society for the Control and Registration of Estate Agents and Mortgage Brokers concerning the need for the introduction of legislation to require the compulsory registration of estate agents and mortgage brokers; and if he will make a statement.

Mr. Noble

My right hon. Friend has received a letter this morning; it will be considered and a reply sent in due course.

Mr. Davis

Is the right hon. Gentleman aware that any unqualified person can establish a business of this character, that he does not require to join any professional organisation and that it is a business in which substantial clients' monies, are held and yet there is no requirement to operate a clients' account? Is he further aware that many people have been defrauded by unscrupulous estate agents and that there is therefore a need for legislation to ensure that proper professional practices are operated by these organisations?

Mr. Noble

I do accept that there are possibilities of abuse in this area. I can only tell the hon. Gentleman that the number of complaints about estate agents and mortgage brokers has been very small indeed. As my right hon. Friend has announced, we are giving sympathetic consideration to the Crowther recommendation for a licensing system in the area of consumer credit which would include mortgage brokers. In the other sphere it seems that the regulations being carried out voluntarily by the national societies are having a considerable effect.

Mr. Pardoe

Is the right hon. Gentleman aware that far from trying to increase restrictive practices in estate agency we ought to be endeavouring to make it as easy to buy and sell a second-hand house as it is to buy and sell a second-hand car?

Mr. Noble

Perhaps, but on the whole, from my experience recently, buying and selling a second-hand house is a little more expensive than buying and selling a second-hand car. Therefore, consumers are rightly seriously interested to see that their money is safe.

Mr. Alan Williams

Why are the Government only able to tell us that they are still giving sympathetic consideration to the Crowther recommendation, 15 months or more after it was made? What is causing the delay? Why cannot the Government come forward with proposals?

Mr. Noble

The hon. Gentleman is asking the House to join him in being particularly naive. We have a tremendous amount of legislation in the House at the moment [AN HON. MEMBER: "Withdraw some".] We shall before long be coming forward with our suggestions in this area.

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