Backbencher pushes to get estate agents regulated

Wednesday 29 March 2023

A backbench politician is pushing for estate agents to be regulated after industry leaders expressed frustration that the Environment Minister had "no plans" to do so.

Estate agents in Jersey are currently not required to hold any professional qualifications, belong to a professional body, or abide by a code of conduct.

But, if Deputy Max Andrews' plans are approved by the States Assembly, regulatory schemes could be established by December 2024.

A review carried out in 2021 found that 40% of Jersey estate agents had voluntarily become members of a redress scheme dealing with disputes between clients and agencies - a figure low in comparison with other jurisdictions. In the UK, it has been a mandatory requirement to join an approved consumer redress scheme since 2008.

A survey of 65 estate agents also discovered that 86% believed regulation was "necessary."

Pictured: Environment Minister Deputy John Renouf said he did "not feel it would be proportionate to introduce new regulation specifically for estate agents."

However, Deputy Renouf recently that the existing Consumer Protection Law was sufficient, and there was no need to introduce bespoke estate agent regulation because many estate agents in Jersey "already adopt good practice."

Deputy Andrews says there is "no empirical evidence" to reinforce that statement, however.

In a report accompanying his proposition for regulation, he said: "I believe there is a need to ensure that Estate Agents are members of a statutory regulatory body and redress scheme. As it stands, Estate Agents can access the market with ease without undertaking professional qualifications when dealing with transactions that are the biggest investments some people will make in their lifetime.

"There needs to be a more robust process in place to ensure Estate Agents are regulated to improve the experiences of those who utilise Estate Agent services.

He added: "I am therefore asking the Minister for Economic Development, Tourism, Sport and Culture to consult with stakeholders prior to implementing a statutory regulatory body and independent redress scheme which is to be introduced no later than December 2024."

Pictured: Deputy Max Andrews has now lodged a proposition saying there is a "need" to introduce regulation.

Local estate agents have recently renewed their calls for regulation, with many seeing Deputy Renouf's position as a step backward.

Harry Trower, Director at Broadlands, said: "The Minister just cannot be bothered when all indications from the previous government were very keen for this to happen."

Gill Hunt, Propertymark Regional Executive and Director at Christie's Hunt Estates, said: "We're confident that we want to keep pushing for regulation locally, because we feel it's important. We want to raise standards, improve the situation, ensure agents are the absolute best that they can be."

Pictured: Gill Hunt has called for regulation.

Former Environment Minister Deputy Steve Luce also said that the absence of progress from the new government was "disappointing after the Scrutiny Panel worked so hard to produce such compelling recommendations."

He added: "it's a shame we're not better regulated."