Agent regulation coming this year, minister confirms

Housing Minister Baroness Taylor has said the government will unveil plans to regulate estate, lettings and management agents later this year, meaning they may need formal qualifications to keep working.

Regulating the sector isn’t a new idea, but this would mark the first concrete step toward implementation.

Baroness Taylor referred back to the previous government’s Regulation of Property Agents (RoPA) report, which was released in 2019.

The report recommended:

• “Reserved activities” to be restricted to licensed property agents at regulated firms

• Minimum qualifications and a Code of Practice for all staff carrying out reserved activities

• A fit and proper person test for company directors

• A new regulator to oversee property agencies

Seven years on, this would still be the starting point for any new rules, but Baroness Taylor said the government will take a second look at some parts of it.

What still needs to be sorted out?

First, Baroness Taylor said the RoPA report will be reviewed in light of the final Grenfell Inquiry report. This could mean tougher requirements for managing agents around fire safety regulations.

The government will also open a consultation on minimum qualifications for estate and letting agents. The RoPA report proposed a minimum NVQ Level 3 Certificate for agents (equivalent to an A-level or Scottish Higher qualification) and Level 4 for company directors (equivalent to the first year of an undergraduate degree).  

If adopted, this would be the first time there have been mandatory qualifications for agents. Even so, some agents have been getting them voluntarily. Rightmove reports that 10,000 agents enrolled for its Level 3 Certificate for Estate and Letting Agents last year.

Next steps are likely to come later this year. However, legislation is likely to take longer, giving agents plenty of time to study.