New legislation around Material Information requirements has left some property professionals unsure about what they now need to do, and more importantly, at risk of accidentally breaking the law.
Until very recently, the National Trading Standards Estate and Letting Agency Team (NTSELAT) provided guidance on part A, B and C Material Information requirements. This guidance set out the information sales and letting agents must include, such as the construction type of the property, availability of utilities and flood risk, so that buyers and tenants could make informed decisions before making an offer. This was welcomed by some agents at the time, while others felt it created a lot of additional admin.
However, last week this was withdrawn from their website. That’s because the new rules on Material Information, which form part of the Digital Markets, Competition and Consumers (DMCC) Act 2024, are now enforced by the Competition and Markets Authority (CMA), rather than NTSELAT.
The definition of parts A, B and C for Material Information reports for residential properties hasn’t changed, as the CMA hasn’t issued an update to previous definitions outlined by NTSELAT. However, the removal of guidance from NTSELAT’s website has caused some confusion in the industry.
What do agents need to do now?
Agents must still provide a Material Information report for every sales and lettings listing. Until a specific update is issued by the CMA regarding any changes to Material Information reports for the residential property sector, the definitions previously provided by NTSELAT for parts A, B and C haven’t changed.
What has changed is how and where this information must be shown. Under the new law, Material Information for sales and lettings listings must be clearly included and displayed in all sales and marketing materials that the CMA defines as an ‘invitation to purchase’ – in short, any time a specific property is advertised with a price to buy or rent. Examples of an ‘invitation to purchase’ include:
- Social media posts to promote listings
- Window cards
- Portal listings
- Print or digital adverts
- Listings on agents’ websites
- Direct mail campaigns to promote a specific property
Online, the CMA guidance says that the Material Information should be available within ‘one click’. For printed materials, a QR code linking to the Material Information report is acceptable. The CMA guidance also says that the link or QR code should be shown in a clear and very visible place on any ‘invitation to purchase’.
Leading property lawyer David Smith of JMW Solicitors has welcomed the move, saying that the NTSELAT guidance was poor and that agents already have a good understanding of what is and isn’t material information. However, the Royal Institute of Chartered Surveyors has warned that the change creates uncertainty and leaves agencies to interpret the law themselves.
Why it matters
Most importantly, agents should be aware that since 6 April 2025, breaching the rules around Material Information can be a criminal offence. Penalties for a person convicted of these offences can include fines and up to two years imprisonment. The CMA also has the power to issue businesses fines of up to £300,000 or 10% of global turnover, whichever is greater. Notably, the CMA can fine businesses directly without having to go through the courts.
To support agents, Dr Neil Cobbold will soon provide further resources explaining what the CMA’s new role means in practical terms and what agents need to do to stay within the law. Keep an eye out for those in the near future.
