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Estate agency law could be extended to landlords and builders

The Conservatives are calling for housebuilders and landlords to be brought within the 1979 Estate Agents Act.

The proposals were tabled during the second reading of the Consumers, Estate Agents and Redress Bill in the House of Commons on Monday.

The bill will require agents to be part of an approved redress scheme.

Speaking to Estates Gazette this week, shadow trade and industry spokesman Alan Duncan said: “When so many houses are being built off-plan – which was unheard of 28 years ago – it seems illogical that they are not included in any legislative system. It is, after all, the same transaction.”

At the moment, direct sales by housebuilders are not covered by the 1979 act.

He added: “A redress process for concerns about lettings also ought to be in place. It might govern what are acceptable clauses and what are not. After all, people who rent property are financially weaker than those who are buying.”

The Tories also want letting agents to belong to a mandatory redress scheme.

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