Regulation of Property Agents: Change is Coming

Last week, we discussed the potential regulation of property agents. Today, it’s official—change is on the way. This shift is expected to positively impact how the residential sector delivers services to customers.

The RoPA Report: A Step Towards Professionalism

Lord Best has delivered the final report of the Regulation of Property Agents (RoPA) working group. The report outlines key steps to make property agents more effective, professional, and accountable. The government is now committed to enforcing a mandatory qualification and introducing a new code of practice for residential property agents.

Mandatory Qualifications for Property Agents

In the future, only qualified agents will be able to operate in the leasehold sector. The regulation will impact all residential agents, including those in sales, lettings, leasehold/block management, and build-to-rent. A new regulator will be established to oversee this framework, ensuring compliance with industry standards.

Licensing and Regulation for Individuals and Firms

Both firms and individual agents will need a licence to operate. A list of reserved activities will be created, and only licensed professionals will be allowed to carry them out. The regulator will have the power to issue and revoke licences if businesses or individuals fail to comply with the rules.

Qualification Levels and Industry Standards

Lord Best’s report proposes a mandatory qualification framework set by the regulator and approved by Ofqual. Sales and lettings agents will need to qualify at Level 3, while block managers will require a Level 4 qualification—equivalent to the IRPM’s Associate qualification and MIRPM, respectively. Many agents will need to upskill, while others may qualify based on their existing credentials.

The Road Ahead: Implementation and Consumer Protection

Now, it’s up to the government to put these changes into action. The ultimate goal is to protect consumers, support ethical practices in the industry, and eliminate bad practices. With cross-party support and public demand for accountability, regulation is no longer a question of ‘if’ but ‘when.’