The launch of the NAEA licensing scheme in the House of Commons at the end of last year saw, for the first time, the establishment of an industry-led scheme to ensure greater protection for both consumers and estate agents. The buying and selling process is, for many would-be homeowners, the biggest financial commitment taken during their lifetime, and it has been our intention from the outset that licensing would be a tool to enable an increase in standards across the sector.

The fallout from the economic downturn of the previous three years coupled with the Coalition Government’s current fiscal constraints has hit the property market hard. It is precisely because of this economic and regulatory upheaval that we chose to launch this scheme, which will see the number of qualified agents increase significantly within the UK.

In addition to this, the growth in the online market for property transactions presents a significant future challenge to the traditional agent in terms of customer retention. We recognise the importance of speaking face-to-face with an agent with good local experience of the area. In order to ensure that this can continue, we believe that a licensing scheme is needed to set the customers’ mind at rest in a process that requires a lot of trust.

In the past, the actions of a few unethical and unqualified estate agents have unfortunately affected the image and reputation of the honest majority. We see accreditation as the best means for dealing with this whilst at the same time recognising the hard work that our agent members go through in taking NAEA qualifications and ongoing development training. A large number of estate agents in the UK have no qualifications and limited experience, but there are no barriers to restrict them trading – we want to show to the house buying and selling public that there is a difference.

It is important to understand that this scheme has been a long-time in the planning, and that for years, the NAEA has lobbied consecutive governments to introduce further regulation to the market. Having exhausted this option, we decided that an industry-led regulatory policy would be the best way forward, and the Coalition government have supported us in our efforts.

The reaction to the launch by some industry pundits, though, has been disappointing with some implying that the scheme has been created to serve only as a way for the organisation to make a profit. This is simply not true. The administrative costs involved in setting up and maintaining the licensing system are inevitable and unavoidable.

I think it is important that we focus on the principals upon which the NAEA was founded back in 1962. Raymond Andrews set up the body when there was no representation for the industry with a commitment to ‘upholding good practice and high professional standards in UK estate agency.’ This is what we remain committed to doing today.


Tags: