Estate agency licence scheme is launched

The National Association of Estate Agents, which is running the scheme, said more needed to be done to protect consumers from unprofessional agents.

In order for an estate agency branch to be licensed, at least one of its agents must be qualified to carry out residential property sales, either through a formal qualification or through having seven years of experience.

The estate agency will also need to have the required level of professional indemnity insurance in place, be bound by the NAEA agents' rules of conduct and commit to keeping up to date with industry developments, while the individual who is licensed will have to undertake 12 hours of continuing professional development every year.

There is currently no barrier to stop someone setting themselves up as an estate agent, with obtaining planning permission for a change of use on their premises, likely to be the biggest hurdle they face. The lack of a formal licensing scheme has also made it difficult for consumers to choose between different estate agents in the past.

Peter Bolton King, chief executive of the NAEA, said: "Nobody would knowingly get into an unlicensed taxi. However, thousands of people are willing to entrust one of the most important transactions of their life to people who are not qualified or experienced.

"We would like all sellers and buyers to ask their prospective agents, 'Do you have a licence?'. If they don't, they should ask themselves whether that's the best place to market their property.

"From today estate agency in the UK is a two-tiered industry – those agents who are licensed and those who are not. I think the public will welcome the distinction and I believe that this move will raise standards across the industry."

The NAEA, which represents around a third of all estate agents in the UK, hopes to get as many of its members licensed as possible by June 2011.

Housing Minister Grant Shapps said: "For years I've been calling for better standards throughout this industry, so I'm delighted the NAEA are taking matters into their own hands and launching a licensing scheme that will ensure their members become known for their professionalism and integrity.

"This is exactly the sort of measure the housing market needs – simple and sensible changes that are driven by industry and designed to deliver results."

n New sellers knocked nearly 7,500 off their asking prices during the past month as the housing market continued to stagnate.

Asking prices for homes coming on to the market fell by 3.2 per cent during the four weeks to November 6, the biggest drop since December 2007, according to property website Rightmove.

The group said asking prices in England and Wales had now fallen in four of the past five months, leaving the average property valued at 229,379.

It warned that with an unseasonably high number of unsold properties on estate agents' books, sellers faced tough competition to find a buyer.

The average home is now taking 102 days to sell, the longest time recorded by the group since it began its index in 2001, as potential buyers adopt a 'wait and see' approach.

There are signs that sellers are also putting their moving plans on hold until the outlook for the market is clearer, with the number of properties put up for sale falling by 9.1 per cent during the month.

Despite the drop, with an average of just over 24,000 new sellers coming to the market each week, properties for sale still outnumber the level of mortgages being approved for house purchase by two to one.

The group said that while not every property sells and not all buyers need a mortgage, the continuing shortage of mortgages was contributing to the current stagnation in the market.