Estate Agents Estate Agents Examined By The NAEA

Date Published:

28/05/2008

Peter Bolton King, chief executive of the National Association of Estate Agents, talks to Lucy Trevelyan about house prices, home information packs, estate agent selection and explains just what his organisation is doing to improve the dreadful image of the UK estate agent...

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When was the NAEA formed?
1962

How many members does it have?
Nearly 10,000

What is its main purpose?
To provide commercial advantage for the benefit of our members and consumers through a high public profile, competitive membership services and a reputation for high professional standards leading to consumer satisfaction.

Should all estate agents be members of the NAEA?
We have continually called for all estate agents to belong to a professional body and meet minimum competency standards. This is the only way that the 'rogue' element will be eradicated and the consumer protected.

What are the dangers involved for home-buyers if their estate agent is not a member?
The NAEA has a Code of Conduct and Rules of Conduct which members are required to adhere to. This protects consumers against unprofessional conduct.

Entry to the Association is now only by examination and members who are owners of companies also have to comply with accountancy regulations, professional indemnity insurance and, if operating in the lettings and management sector, compulsory client money protection. The Association also has a rigorous disciplinary procedure. The public must bear in mind that, unfortunately, anyone can set up an agency with none of the above requirements. Our recommendation has to be, only use an agent who is a member of the NAEA.

Words of advice to a house-buyer and house-seller in selecting an estate agent?
Always seek the advice of an experienced agent and preferably a member of the NAEA. Ask what service levels they will work to and what you can expect in terms of service and feedback. Remember the agent who quoted the highest valuation and lowest commission is not automatically the best!

What have been the biggest challenges facing the NAEA recently?
Our members faced a big change with the introduction of Home Information Packs (HIPs). However, we worked with the Government to overcome many of our concerns and to ensure that the proposals were as practical as possible for both members and the consumer. We also had to ensure that our members would able to compete in the post HIP environment. Another major challenge is to keep pushing the Government on the question of licensing to help improve the standing of the profession and protect the consumer.

Is there any recent legislation that you feel has had an affect the housing market?
Again, HIPs has changed the buying and selling process because no property can be marketed prior to the compilation of the pack. This includes a Home Condition Report, which is paid for by the seller. As part of this it is a requirement for all agents to belong to an Independent Redress System.

How are estate agents generally viewed by the house-buying public?
Unlike the USA where agents are amongst the top five most respected professions, in the UK they are generally regarded as one of the worst. This is unfortunate, as the vast majority work very hard on their clients behalf and for a commission level well below that of the USA and many parts of Europe.

The NAEA is doing its best to improve this image but, generally, the fact that we have some 10,000 members with a relatively low incidence of disciplinary action would indicate that the house-buying and selling public are generally happy with the service they receive from our members.

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