Scotland's estate agents included in OFT study of homes market

Published on Wednesday 25 February 2009 20:31

ESTATE agents are to come under Office of Fair Trading scrutiny after the watchdog launched a study of the home buying and selling market yesterday.

The market study, which will take into account the differences between the Scottish market and the rest of the UK, will examine the level of competition between estate agents.

It will also look at the relationship between estate agents and others working in the property market, including mortgage brokers, solicitors and surveyors.

The study will also assess whether the way the market is currently regulated successfully protects buyers and sellers and will look at barriers to entry for new types of businesses, such as internet-based models.

The launch of the study follows two months of discussions with government bodies, the industry and consumer groups. According to the OFT, the aim of the investigation is to ensure buyers and sellers are served well and that they are supported by an effective, competitive and innovative market.

Sarah O'Neill, principal policy advocate and solicitor at Consumer Focus Scotland, welcomed the news that Scotland would be included in the study. She said: "This will be the first time in many years that the market in Scotland has been examined.

"While there are significant differences in the way homes are bought and sold in Scotland, that fact was never a reason to leave Scotland out."

O'Neill added that while the advent of Home Reports gives buyers and sellers more information than ever before, there remain areas of the process where both parties were vulnerable.

For more on Home Reports, see Smart Money in The Scotsman this Saturday.