OFFICE OF FAIR
TRADING News Release (141/08) issued by COI News Distribution
Service. 8 December 2008
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