These changes represent the first phase in a project by the National Trading Standards and Lettings Agency Team to define what is considered material information for property listings.
Coming into effect in May 2022, new advertising rules will make it compulsory for certain property details to be included when introducing a property to market.
The idea behind the reforms is to reduce the volume of fall-throughs by providing buyers with more of the information they’ll need to make a purchasing decision prior to viewing.
What information is now deemed compulsory?
The changes are being implemented in 3 stages, with Part A which is coming into force in May 2022 includes information that would involve unavoidable costs for the occupier.
Some of the mandatory information required under Part A will include tenure, current rental yields and council tax. These fields are being added to property platforms and will be required in order to post an advertisement.
Parts B & C of the regulations are being developed as we speak in conjunction with industry partners but some details are available in relation to what they might include.
This phase would apply mainly to utilities where non-standard features would affect someone’s decision to pursue the property, for example – not being connected to Gas.
This phase could require information that may or may not affect the property to be disclosed at advertisement stage, such as whether the area is in a flood risk zone or suffers from disproportionate rates of crime.
How are these changes being received by the industry?
RightMove are already reporting that there has been an 80% completion rate of tenure information – showing that these regulations are being widely accepted and implemented by the industry in what is largely being deemed a positive change.
Agents anticipate as a result of these changes they will waste less time on
The more transparency throughout the transaction will lead to a smoother process for agents, buyers and sellers. Truly a win-win.
When 300 agents were surveyed by the National Trading Standards, 91% agreed that a defined list of mandatory basic information would benefit the process.
“Being able to provide transparent material information upfront is essential to helping all parties in the home buying and selling process make informed decisions. This means that consumers have a better knowledge, making the process easier, reducing fall through rates and allowing the agents and conveyancers to be more proactive and efficient.”Nathan Emerson, CEO of Propertymark