Consumers, Estate Agents and Redress Bill [HL]

I am grateful to the noble Lord, Lord Lee of Trafford, for bringing forward these amendments. The amendments to Schedule 6 seek to extend the scope of the redress provisions to lettings work and property developers who sell properties direct to consumers. Some of this was covered yesterday in Committee, and I do not propose to go over the same ground. As I said then, the Government have already taken steps to improve the regulation of the lettings sector. However, we will continue to monitor the operation of the private rented sector and the property sector more generally to determine whether there is a market failure that should be addressed by legislation. I understand the concern that those who buy a property from a property developer should have the same protections as those who buy a property from an estate agent. However, it is felt that the issues in these markets are different, and we need to consider the evidence carefully to ensure that the same solution is appropriate. The Government are keen to see comprehensive redress arrangements for all those involved in the home buying and selling process, including property developers. We are aware that there are concerns about quality standards in the completion of new homes. It was one of the issues addressed by Kate Barker in her review of the issues underlying the supply of housing in the UK and affecting the functioning of the housing market. The report recommended that the housebuilding industry must demonstrate increased levels of customer satisfaction and that, if progress was unsatisfactory, or if customer satisfaction levels did not rise substantially by 2007, the OFT should conduct a wide-ranging review of whether the market for new housing was working well for consumers. The OFT is keeping open the option of a review, as recommended by Kate Barker. It is currently assessing the industry’s actions in response to that recommendation, and the Department for Communities and Local Government is continuing to monitor the industry’s work aimed at improving quality standards in the completion of new homes more generally and providing better protection to consumers. The Bill implements the recommendations of OFT reports based on issues relating to the estate agency market. The Government are looking at how redress should be made available across the whole property sector in the medium term. I can assure the noble Lord that the Government will take action in other areas, as necessary, when an evidence-based assessment has been made. In addition, I should point out that the Bill makes it clear that there is nothing to prevent an approved redress scheme dealing with other types of complaints on a voluntary basis.