Consumers, Estate Agents and Redress Bill [HL]

moved Amendment No. 126: 126: Schedule 6, page 60, line 29, at end insert— ““(a)”” The noble Lord said: The purpose of Amendments Nos. 126 and 127 is to ensure protection under the redress scheme for those who buy property without any estate agency involvement. Although the vast majority of residential properties are sold through estate agents, a sizeable number are sold to the public directly from housebuilders or similar—developers usually operating a manned site office with plans, prices and so on and with a show house available for viewing. Although we accept that the vast majority of serious housebuilders operate with integrity and are covered by HBF or NHBC charter, there is a case for bringing them into the redress scheme, which would make the scheme all-embracing and give the public additional reassurance. The steady rise in the price of houses and building land has resulted in many smaller builders doing what one may term ““infill”” developments of just one or two properties, particularly in our more affluent areas. Those builders are unlikely to have the reserves and resources that are available to larger housebuilders, particularly if there were to be a serious economic downturn. Therefore, bringing them into a redress scheme makes particular sense. The amendments are also designed to protect the public when they enter into a leasing transaction via an estate agent. In many ways, tenants are more vulnerable, given that buyers with mortgages have had to demonstrate stability of income, while those buying entirely from their own resources are, by definition, of greater financial substance. Tenants, on the other hand, particularly of cheaper properties, are far less likely to be able to employ quality professional advisers and are thus more vulnerable to the unscrupulous agent. I am very pleased that the National Association of Estate Agents supports bringing residential lettings into this redress legislation. Of course the leasing issue goes beyond estate agents to include lettings via the internet and other media, including newspapers. I accept that I may be straying beyond the Bill’s Long Title, but perhaps the Minister could give me assurances on how redress may be met in those areas and circumstances. I beg to move.