A report examining the need for Jersey estate agents to be regulated has been published by Jersey’s Economic and International Affairs Scrutiny Panel.
The Panel found that, unlike the UK, Jersey estate agents are not legally required to belong to a redress scheme, which deals with disputes between consumers and estate agents.
In Jersey’s 46.2 sq miles, there are 46 estate agents involved in transacting property (not including property letting agents)
Whilst approximately 40% of estate agents practising in Jersey have voluntarily become members of an approved redress scheme, the Panel recommends that this becomes a mandatory requirement. It is the Panel’s view that this could provide the first step towards a regulated estate agency market in Jersey and greater protections for consumers.
Throughout its review, stakeholder engagement revealed concerns over the lack of regulation or requirement for membership within an association and low barriers to entry into estate agency. The Panel identified various pieces of estate agent specific legislation in the UK and the EU and recommends that a consultation is launched to investigate estate agent specific legislation for Jersey. In addition, the Panel requests that any future estate agent regulation considers the recommendations of the UK Regulation of Property Agents report.
Timothy Douglas, Head of Policy and Campaigns for Propertymark, said: “It’s alarming that there remains no specific legislation covering the activities and conduct of estate agents in Jersey.
“Buyers and sellers are extremely vulnerable to bad practice and questionable standards from agents who do not voluntarily adhere to a Code of Practice through membership of a professional body such as Propertymark and the Jersey Estate Agents Association, or The Property Ombudsman.
“This review has shone a light on an important issue and, crucially, established a clear need and appetite for regulation. We’re pleased to see the panel take on board our long-held concerns about the low barriers of entry that allow estate agents to operate, and that they also agree that estate agents in Jersey should be required to belong to a government-approved redress scheme.
“There is still more to be done through the introduction of legislation, and understanding the work of letting agents and how they can be included in the regulatory regime, to instil full confidence throughout our sector.”
Chair of the Economic and International Affairs Scrutiny Panel, Deputy David Johnson, said: “Our engagement with stakeholders throughout this review has raised several concerns about the lack of regulation and accountability of estate agents in Jersey.
“We hope, however, that the recommendations outlined in our report will initiate steps towards achieving a regulatory environment that improves the sector for both consumers and estate agents. With well-established legislation and rules governing estate agents in the UK, we believe it is time for Jersey’s Government to begin a ‘phased in’ approach towards a regulatory estate agency market which matches the high regulatory standards of other Jersey industries.”
