§ Mr. Neil Thorneasked the Minister for Trade what are his plans for implementing the remaining provisions of the Estate Agents Act 1979; and whether he will make a statement.
§ Dr. VaughanI have decided that, for the time being, it would not be advisable or necessary to implement the remaining provisions of the Estate Agents Act. It is important that, subject to the provisions and regulations already in force, new methods and opportunities for selling property should be free to develop. This accords with my general belief that consumers are best protected by free and fair competition backed up by self-regulation.
I am, however, aware that there are still complaints about certain aspects of estate agency. I look to competition as the best means of improving value for 136W money and quality of service. But I also look to the estate agents themselves to maintain and improve the highest standards of openness and integrity in their dealings with vendors and purchasers. I will keep a close watch on this area and I will not hesitate to use my powers under section 3 of the Act to prescribe offences or to declare a practice undesirable if I become aware that unethical or dishonest practices by estate agents are constituting a serious threat to consumers. Moreover, the Director General of Fair Trading will continue to exercise his powers to ban or warn "unfit" estate agents when necessary.
I will also keep a close watch, in conjunction with the Director General of Fair Trading on the effectiveness of the Estate Agents (Accounts) Regulations in protecting pre-contract and contract deposits. Whilst I see no urgent need to require estate agents to have a fidelity bond or equivalent as a pre-condition for accepting deposits, I propose to reconsider implementation of sections 16 and 17 of the Act when there has been more experience of the operation of the existing regulations.