Assetz® News - Carsberg - probably the best property report in the world?

Carsberg - probably the best property report in the world?

16th June 2008 |

Today has seen the publication of the Carsberg report, carried out on behalf of the Royal Institution of Chartered Surveyors (Rics) by Sir Brian Carsberg. Sir Brian, a former head of the Office of Fair Trading, stated that one of the key issues was to ensure there was better regulation for anyone buying, selling or renting a property.

Such a statement inevitably has implications for a range of different issues and people. For those investing in property, this would mean that, if the recommendations applying to the lettings sector are approved, the level of confidence in the sector may grow and those who are letting should get a better service.

This, at least, is the theory behind the reforms proposed, which have been welcomed by many organisations.

With regards to letting, one area Sir Brian considered was the regulation of lettings agents, something which he saw as an area of major public concern, since agents were not bound by the laws which have applied to estate agents since 1979 to be formally qualified and licensed. This, he stated, needs to change.

The National Association of Estate Agents (NAEA) agreed. Peter Bolton King, the chief executive of the body, said: "Sir Brian's recommendation that all agents practicing in the UK should be registered by an official body and regulated by an independent standards board is one we wholeheartedly endorse." He added that the review had been a "wake-up call" for the sector.

Among those who may not be sleeping so well in the first place after the publication of the report are advocates of home information packs (Hips). On this he suggested the desired effect of making the process of buying a home quicker and more efficient had not transpired, concluding that the packs should be made voluntary.

Seizing on this, the Nicholas Leeming, major client director of property portal propertyfinder.com, commented that the report showed Hips, which had become "unrecognisable" from their original proposed form, were now "nothing but a disruption to the housing market". He stated he would back the call to make them voluntary except that he believed nobody would pay for one in their current form, which was focused overwhelmingly on the energy performance certificate.

In his response to the news, Paul Broadhead, the deputy director general of the Association of Home Information Pack Providers called the recommendation "disappointing" and suggested recent research showing that the average time taken to sell a home was 12 days less with a Hip may have been produced to late to influence the findings.

If the report was a blow to Hips and a boon to the scheme's opponents, housebuilders were happy with the recommendation that housebuilders and developers should also be subject to a regulatory scheme. David Bexon of SmartNewHomes.com said the move would "provide additional protection" and increase "proficiency" in the process of selling new homes. Similarly, the managing director of Galliford Try Homes Ian Baker predicted the proposals would offer "further support" to the process of providing better regulation.

For many industries, less regulation is often the trend that is welcomed. This is clearly not so in the property sector, where transparency, good customer service and confidence have been listed as keys to a healthy industry by its stakeholders. With the exception of the removal of the mandatory element of Hips, the Carsberg Report has offered that. Those involved in buying, building or letting will now be watching to see what emerges from the consultation that will follow.