The OFT Report – Estate Agents
February 27th, 2010
The OFT has finally released its ‘Findings’ (you always know when you are about to be underwhelmed) on Estate Agency. Specifically they looked into competition, prospects for entry into the market by online models and the role of professional advisers mortgage brokers, surveyors, solicitors who work with estate agents.
Here’s a clue as to the likely effect of this hard hitting nature of this detailed investigation which has been running for a year the report finds that “For many consumers, traditional estate agents provide a good service and they are happy”.
The report then says “They find no evidence of collusion between estate agents”
Well if they had just asked me!
After imploring vendors to haggle with agents the report then delivers a welcome verdict in finding that “existing laws make it hard for competitors to use the internet to set up business.” In the States 15% of properties are sold on the internet compared with only 2% in the UK. I remain unconvinced that Google will do any more than provide an enhanced web portal platform for Estate Agents rather than real competition in the UK
Labels: estate agency competition
