Office of Fair Trading
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OFT to seek views ahead of home buying and selling market study
The OFT intends to launch a market study into home buying and selling, looking at traditional estate agency models and alternative ways of buying and selling homes, it announced today.
Ahead of this, the OFT is writing to stakeholders to ask for their views and engage with them to discuss the scope and scale of the study, which will commence in early 2009.
The OFT proposes that the market study should take a comprehensive look at home buying and selling in terms of:
* Competition on price and quality between service providers;
* The prospects for new entry by, in particular, Internet property retailers; and
* The extent to which consumer interests are protected by the existing regulatory framework.
The study may also cover the relationships between estate agents, and mortgage brokers, surveyors, solicitors and other professional advisors. The OFT will be discussing these issues with Government, devolved administrations, consumer groups and industry in the run-up to the launch in order to refine the scope of the study.
John Fingleton, OFT Chief Executive, said:
'Buying or selling a home is something most people do only a few times in their life, but it is usually the biggest transaction they will make. We want to ensure that consumers are served well when buying or selling a home and are supported by an effective, competitive and innovative market. "Before embarking on such an important piece of work, we want to engage with the industry and consumer groups to get a clear idea of the most salient issues we should focus on.'
The OFT will be contacting key parties directly. Other interested parties can submit written views, by 16th January 2009 to: homebuyingandselling@oft.gov.uk
NOTES
1. OFT market studies are carried out under section 5 of the Enterprise Act 2002 (EA02) which allows a market-wide consideration of both competition and consumer issues.
2. Market studies involve an analysis of a particular market with the aim of identifying and addressing any aspects of market failure from competition issues to consumer detriment and the effect of government regulations. Possible results of market studies include; enforcement action by the OFT; a reference of the market to the Competition Commission; recommendations for changes in laws and regulations; recommendations to regulators, self-regulatory bodies and others to consider changes to their rules; campaigns to promote consumer education and awareness; a clean bill of health.
3. The OFT is unable to provide advice or resolve individual complaints for consumers. Consumers can seek advice from Consumer Direct (tel: 08454 04 05 06, http://www.consumerdirect.gov.uk).
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk
