MARK LAZAROWICZ MP
Labour MP for Edinburgh North & Leith
PRESS STATEMENT
For immediate release
EDINBURGH MP WELCOMES BETTER DEAL FOR HOME BUYERS AND SELLERS
Mark Lazarowicz MP, Member of Parliament for Edinburgh North and Leith, has welcomed the UK Government’s move to introduce extra protection for people buying and selling their home.
UK Consumer Minister Gareth Thomas laid an order in Parliament yesterday requiring all residential estate agents to belong to a redress scheme by 1st October. New measures will also come into force in October 2008 that give greater powers to the Office of Fair Trading to remove rogue estate agents from the market, and increase the investigatory powers of enforcement officers.
Mark said: “”I’ve been pressing for more rights for new home buyers, and this is a welcome first step. As estate agents have a much smaller share of the market in Scotland than elsewhere because solicitors have the biggest share, the implications are not so great as elsewhere in the UK, but there are still thousands of properties bought and sold through estate agents in Scotland, so this measure will help protect many people in Scotland who previously did have adequate opportunities for redress if a sale or purchase went wrong.”
From October people who experience problems of this type will be able to have access to a free and easy to use ombudsman. This scheme will be transparent, independent and fair. It will resolve complaints quickly and have the power to award compensation.
“Buying or selling your home is a life changing decision which can cause real stress and worry but these measures should take some of this worry away and drive out the rogues that give honest businesses a bad name.”
Research commissioned by the OFT in 2004 showed that 21% of sellers and 23% of buyers experience problems with estate agents.
In the first instance there will be a penalty charge of £1,000 for estate agents that do not comply with the requirement to join a redress scheme. The penalty charge is in addition to the ultimate sanction for non-membership – a prohibition order banning an estate agent from carrying out estate agency work.
The Government’s estate agents measures were part of the Consumer, Estate Agents and Redress Act that received Royal Assent in July 2007. Responsibility for approving one or more redress schemes lies with the Office of Fair Trading.
On 19 June the OFT approved an application from the Ombudsman for Estate Agents to run a redress scheme. The OFT is currently considering two other applications. Details of these applications are available on the OFT web-site.
ENDS
For further comment and information please contact the office of Mark Lazarowicz MP on 020 7219 8222.
Website: www.marklazarowicz.org.uk
Constituency Office: 86-88 Brunswick St, Edinburgh EH7 5HU
Tel: 0131-557-0577 Fax: 0131-557-5759 .