MIPIM Asia: Property consultant Tuffin Ferraby Taylor has issued a warning to Asian investors that they may be receiving conflicted advice from agents in London.
The company, which is attending this week’s MIPIM Asia conference in Hong Kong, claims there is evidence to suggest that investors receive “tweaked” advice when completing technical due diligence where the same firm advises both sides of a deal.
TFT partner Paul Spaven said: “Investors deserve independent advice separate from teams – quite understandably – whose principal focus is getting a deal over the line. The reputation of the surveying profession depends on it. We want all those who invest in European real estate – and particularly those who are not from home markets – to benefit from independent and unconflicted advice.”
Overseas investment into UK commercial property now accounts for more than 40% of overall investment, according to TFT figures, with £25.4bn invested in 2013.
The Royal Institution of Chartered Surveyors launched a consultation on agent conflicts this autumn which will report back next year, following the publication of voluntary guidelines on “double dipping” by the Investment Property Forum last year.
“I am fully aware that this topic is almost a taboo in the industry – true independence has become harder and harder as the sector has consolidated,” Spaven added. “But we fully support the current RICS investigation into conflicts of interest in the property sector and look forward to sharing our considerable insight in this area with our regulatory body.”
jack.sidders@estatesgazette.com
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