As a profession, estate agents aren’t the most popular. But are estate agents regulated?
If a profession is regulated, it means there is an educational pathway, such as qualifications or training, that will allow a person to enter said profession.
But regulation also defines the profession, sets out a set of behaviours and in some cases also provides rules and laws that need to be followed.
There are different levels of regulations, depending on the job in question. Medical professions will be much more regulated than, say, shop keepers.
Estate agents in the UK do come under some regulations, although it’s on the lower end. In this article we will shed some light on this topic and tell you all you need to know.
The Legal Aspect
While estate agents aren’t a fully regulated profession like others, such as doctors or lawyers, there is regulation that covers them:
- The Estate Agents Act 1979 (EEA 1979)
- The Consumer Protection from Unfair Trading Regulations 2008
- Consumers, Estate Agents and Redress Act 2007
All three pieces of legislation combined provide the current legal framework for estate agents. Let’s look at them in more detail to find out what that means for you as seller or buyer.
EEA 1979
Under the current law, an estate agent is defined as someone who is negotiating or introducing those who are selling or buying a leasehold or freehold property as part of their business.
The Estate Agents Act 1979 lays down the duties of the profession involving:
- Property buyers
- Property sellers
The Act makes clear the right for an estate agent to charge a commission, and states that sellers and buyers should understand their contract’s terms before entering into it.
It also lays down minimum standards of behaviour for those in the profession. However, it doesn’t provide a licensing scheme, like for other professions such as nurses.
The act does set out which persons aren’t fit to be an estate agent. For example, someone who has committed certain crimes.
This act covers the UK as a whole, so will apply in all UK countries.
Consumer Protection From Unfair Trading Regulations 2008
This act protects any customers from unfair trading practices, including in the property sector, which is why estate agents are also covered under this regulation.
The act protects buyers and sellers from:
- Misleading trading practices
- Unfair trading practices
- Misleading omissions
- Aggressive sales tactics
This law also covers the whole of the UK.
Consumers, Estate Agents and Redress Act 2007
This act stipulates that every every UK estate agent who is engaging in residential work must belong to an approved redress scheme that will deal with complaints about the selling and buying of property.
For buyers and sellers this means that if there is a problem, there is a complaints process in place which is part of one of the two approved redress schemes:
So what does this mean for you? If you have a complaint against an estate agent, either as a seller or a buyer, and their internal complaints process hasn’t resolved it or there isn’t one, you can go through the redress scheme they are part of.
This is great, because it means that you have support if there is an issue you can’t resolve with the agency directly.
To find out of which redress scheme your estate agent is a member of, you can check the members lists of both schemes on their websites. Although, any good estate agent should tell you to which scheme they belong on their website.
If the estate agent you are using isn’t on any of the lists, they are breaking the law and you can report them to Trading Standards.
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Regulating Authority
The responsibility for regulating the activities of estate agents in the UK comes under the remit of the National Trading Standards Estate Agency Team, which is delivered by Powys County Council.
They assess whether a business or individual anywhere in the UK is fit to carry out estate agency work as laid out by the Estate Agents Act 1979.
The trading standards officers will then investigate any breach of the Act, and if the agency is in breach of any provisions, they can be considered for a warning or banning order.
The regulation of estate agents currently enables those who have been prohibited from engaging in any type of estate agency work to be listed on the Estate Agents Public Register.
Trading Standards is responsible to maintain this register and add any person who has been warned or banned under the Estate Agents Act.
They also approve any redress schemes for the profession. As we have already said, currently, there are two redress schemes and any estate agent is obliged by law to be a member of either, if they deal in residential property.
Qualifications
There is currently no legal framework for an estate agent to have any qualifications before setting up a business.
As long as they follow the above regulations, everyone can become an estate agent. However, most estate agencies will have requirements for certain qualifications or training if they hire an estate agent.
There are common pathways, including:
- University degrees
- Training with a professional body in the industry
- Apprenticeships
- Starting from the bottom and working towards to this role
The industry bodies that offer courses or training for estate agents include:
- Propertymark
- Chartered Institute of Housing
- National Association of Estate Agents (NAEA)
- Royal Institute of Chartered Surveyors (RICS)
Estate agents might also be a member of one or more of these industry bodies, which means they’re bound to their relevant codes of conduct.
But as there is no streamlined qualification route or licensing scheme, the quality of individual estate agents can vary quite a bit. This might be the reason why this profession has such a poor reputation, especially given that their services can be quite expensive.
Changes Are On The Horizon
Maybe soon the question ‘are estate agents regulated in the UK?’ can be answered with yes, as changes might be on the cards.
Back in 2019, the Regulation of Property Agents Working Group, which was set up by the Ministry of Housing, Communities and Local Government, published a proposal for new legislation of the sector.
The proposed changes included:
- A new regulator
- All agents will be licensed
- A new estate agents’ code of practice
- Qualifications for estate agents
However, since then no new legislation has been brought to parliament, despite previous governments committing to those changes. [correct as of January 2025]
Conclusion – Are Estate Agents Regulated?
While the profession can’t be called fully regulated at the moment, there are some aspects that are covered by legislation.
For most sellers and buyers, the most important thing is that there is a way to complain and get issues resolved through government approved redress schemes.
Because estate agents are legally obliged to be a member of one of the approved redress schemes, we would recommend that any agencies you’re considering hiring to sell your home is indeed registered with either scheme.
You can do this by checking their registration lists on their websites (The Property Ombudsman; Property Redress Scheme).
But with no streamlined regulations, it can be difficult to distinguish the good ones from the bad ones. So here are our tips to make sure you choose one of the best estate agents out there:
- Get at least three agents to value your property
- Check their offers carefully to make sure you get what you want
- Price is important, but the cheapest might not necessarily be the best one
- Check how many properties they have sold in your area
- Get recommendations from friends and family
- Check online reviews
- Check that they are part of an approved redress scheme and aren’t on the banned or warned list
Selling a home is one of the most stressful things in life, but with the right estate agent by your side, it can be easier. And although they aren’t necessarily regulated, there are many good ones out there that will make the experience less stressful.
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