Moved by
Lord Best
94: After Clause 109, insert the following new Clause—
“The Regulator of Property Agents
(1) The Secretary of State shall establish a body corporate known as the Regulator of Property Agents (“the Regulator”) to regulate property agents in respect of—
(a) estate management of leasehold properties,
(b) sale of leasehold properties, and
(c) sale of freehold properties subject to estate management or service charges.
(2) Regulations under this section—
(a) must be laid within 24 months of the date of Royal Assent to this Act,
(b) must be made by statutory instrument, and
(c) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.
(3) If, at the end of the period of 12 months beginning with the day on which this Act is passed, the power in subsection (1) is yet to be exercised, the Secretary of State must publish a report setting out the progress that has been made towards doing so.
(4) The objectives of the Regulator are—
(a) to protect the consumers of services provided by property agents, in respect of—
(i) estate management of leasehold properties,
(ii) sale of leasehold properties, and
(iii) sale of freehold properties subject to estate management or service charges.
(b) to set and uphold standards of competence and conduct for property agents in relation to the sale of leasehold properties and freehold properties subject to estate management or service charges.
(5) “Property agent” means an individual or body of persons (whether incorporated or not) which carries out the roles of an estate agent as defined in Section 1 of the Estate Agents Act 1979 or of a property manager as defined in Sections 54 and 55 of the Housing and Planning Act 2016.
(6) The Secretary of State may provide financial assistance (by way of grant, loan or guarantee, or in any other form) and make other payments for the establishment and maintenance of the Regulator.
(7) The Regulator must establish a panel of persons called “the Advisory Panel”.
(8) The Panel may provide information and advice to the Regulator about, and on matters connected with, the Regulator’s functions (whether or not it is requested to do so by the Regulator).
(9) The Regulator must appoint the following persons to the Panel—
(a) persons appearing to the Regulator to represent the interests of—
(i) leaseholders of properties managed by property agents,
(ii) freeholders of properties subject to estate management or service charges, and
(iii) professional bodies and associations representing property agents who manage leasehold properties.
(b) the Secretary of State.
(10) The Regulator has powers as follows—
(a) to monitor, assess, report, and intervene (as appropriate) in relation to the performance of property agents who manage leasehold properties;
(b) to determine mandatory qualifications to ensure that those undertaking the activities of a property agent in England have, or are working towards, qualifications that demonstrate competency in respect of the sale or management of leasehold and freehold properties;
(c) to enforce compliance with a mandatory and legally-enforceable Code of Practice for property agents selling or managing leasehold properties;
(d) to provide guidance to property agents on the regulatory framework for the sale and management of leasehold and freehold properties;
(e) to register all property agents complying with the requirements of the Regulator and to revoke the registration of property agents who persistently breach the regulatory framework;
(f) to raise a registration fee and an annual fee to pay for the ongoing costs of the Regulator of Property Agents;
(g) to review and make recommendations to the Secretary of State for the updating of the statutory guidance that sits alongside the regulatory framework for the sale and management of leasehold and freehold properties;
(h) to delegate to designated bodies administrative and regulatory functions in respect of the sale and management of leasehold and freehold properties, as it deems appropriate.
(11) The Property Ombudsman and other redress schemes, if any, covering property agents shall provide the Regulator with such information as the Regulator shall request.”
Member’s explanatory statement
This amendment seeks to create a Regulator of Property Agents to regulate property agents in respect of estate management of leasehold properties, sale of leasehold properties, and sale of freehold properties subject to estate management or service charges.