Consumers, Estate Agents and Redress Bill [HL]

moved Amendment No. 90: 90: Schedule 6 , page 63, line 10, at end insert— ““23AA Code of practice (1) The Secretary of State must by order require a redress scheme in section 23A to adhere to an approved code of practice. (2) A code of practice is ““approved”” if it is administered by or on behalf of the Secretary of State and designated by him as an approved code of practice for the purposes of this section.”” The noble Baroness said: My Lords, I am mindful of the time, so I shall speak quickly on the amendment, because I am sure that the Minister will give me this in two minutes. We have just heard the persuasive arguments of my noble friend Lord Caithness highlighting some serious concerns about the estate agency industry. Amendments Nos. 90 and 91 represent a possible option, which I hope my noble friend Lord Caithness will be able to support. The weight of his experience would be most welcome. Amendments Nos. 90 and 91 would establish a code of practice that would provide standards that all estate agents’ redress schemes would have to apply. This is an important distinction: it would not introduce a code of practice for estate agents; rather it would ensure that all estate agents’ redress schemes had to adhere to one set of standards. My central worry in this Bill is that it opens up avenues for all sorts of redress schemes but does not actively encourage consistency within different schemes. My noble friend Lord Caithness has spoken with great expertise on this matter. However, at this stage, the least that the Government could provide is an assurance that we will not be left with a scenario as a result of this Bill whereby there are many and varied redress schemes, with the best estate agents signing up to the best, most vigorous redress schemes, including penalties that act as deterrents for bad practice, and agents with very little regard to the fairness of their practice, or the welfare of their customers, signing up to schemes that pose no threat and provide no incentive to better practice. I was pleased to have the opportunity to meet the chief executive of the National Association of Estate Agents who was clear in saying that while his organisation would welcome licensing, consistency in some form or another was of the utmost importance in the industry today. He has written to me on Amendment No. 90. He stated: "““If there is to be more than one estate agents’ redress scheme, it is critical that they operate in the same way so that the consumers and the industry are not further confused, and so that all estate agents operate on a level playing field””." The amendment is simple. It would require the DTI to draw up a simple code of practice to which all estate agents’ redress schemes would adhere. It would achieve consistency in the industry and the confidence of the public. I look forward to the Minister’s response and I hope that it will be positive. I beg to move.