Regulation of Property Agents (RoPA)

Propertymark was part of the working group made up of industry stakeholders and chaired by Lord Best. We have long called for Government regulation to ensure everyone in the industry is licensed, adheres to a strict code of practice and holds (at least) a Level 3 qualification.

RoPA's proposed regulatory framework is focused on estate agents in the UK and letting and managing agents in England. The private rented sector is a devolved issue meaning the Welsh and Scottish Governments have already introduced legislation to regulate letting agents.

RoPA's report recommends that:

All agencies operating a residential property business should be licensed and licensing should include a fit and proper person test for company directors
All staff delivering ‘reserved activities’ employed within residential agency business should be licensed and adhere to a Code of Practice
All staff delivering ‘reserved activities’ employed within residential agency business should hold a qualification at Level 3 or above
All company directors and management agents should hold a qualification at Level 4 or above
A new regulator be appointed to oversee compliance with an overarching Code of Practice

Latest news

22 May 2024

Lords frustrated by UK Government response on RoPA

The Chair of the Industry and Regulators Committee in the House of Lords, Baroness Taylor of Bolton, has written to the Department of Levelling Up, Housing and Communities (DLUHC), expressing disappointment at the UK Government’s response to findings of the Committee’s inquiry into the need for the regulation of property agents.

News, Regulation of Property Agents (RoPA)

Propertymark Qualifications

We are confident that all agents in possession of an established, Ofqual Regulated Level 3 qualification—like those offered by Propertymark Qualifications—will have a significant head start in being ready for regulation.

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What is the current state of play for estate agents?

Estate agents are not required by law to be licensed or qualified. In Scotland, a solicitor will manage much of the property sale and in England, Wales and Northern Ireland—unless the estate agent is a qualified chartered surveyor—they will liaise with the other professional parties.

Estate agents are principally regulated by the Estate Agents Act 1979 and the Consumer Protection from Unfair Trading Regulations 2008. In addition, all estate agents in the UK who engage in residential estate agency work must belong to a Government-approved redress scheme under the Consumers, Estate Agents and Redress Act 2007.

How are letting agents regulated across the UK?

There is currently no overarching statutory regulation of private sector letting or managing agents in England. Whilst many letting and managing agents submit to voluntary regulation, there is no legal requirement for them to belong to a trade association.

Scotland: In 2018 the Letting Agent Code of Practice (Scotland) Regulations 2016 came into force and agents are required to joing the Scottish Letting Agent Register.
Wales: requires agents to be licenced through Rent Smart Wales.
Northern Ireland: Department for Communities announced (in January 2017) an intention to 'introduce a regulatory framework for all letting agents including bringing forward legislation to ban letting agent fees'. The biggest update since has been the inroduction of the Private Tenancies Act (Northern Ireland ) 2022.
England: no comprehensive regulation of letting and managing agents.

RoPA FAQs

What are RoPA's aims?

The RoPA working group was created to advise the government on:

a model for an independent property agent regulator, including how it will operate and how it will enforce compliance
a single, mandatory and legally enforceable Code of Practice for property agents
a system of minimum entry requirements and Continuing Professional Development (CPD) for property agents
explore fees, charges and ability to choose a managing agent for leaseholders and freeholders

Who chaired the working group?

The working group was chaired by Lord Best who has been an independent crossbencher of the House of Lords since 2001. He has extensive experience from his years working across the housing sector.

Who participated?

RoPA's working group was made up of a number of property industry and consumer stakeholders: Propertymark, Royal Institution of Chartered Surveyors (RICS), National Trading Standards (NTS), Professor Christopher Hodges from Oxford University, Institute of Residential Property Management (IRPM), Leasehold Advisory Service (LEASE), National Landlords Association (NLA), Citizens Advice and Ombudsman Services

Why is RoPA recommending licensing?

Professional agents agree that bad practice is detrimental to consumers, agents and the reputation of the property sector. The working group explored a variety of models of regulation, considering the wider context of different professional infrastructure and the financial and emotional consequences of bad practice within the industry.

Licensing would facilitate a structure of regulation, including adherence to a code of practice, a fit and proper persons test for directors and a register of agency licences available to consumers. In turn, this would drive up the standards of service provided to consumers.

We have long argued that piecemeal regulation does not work. A coherent, overarching framework of regulation is essential in order to create a level playing field and remove the two-tier market that currently exists.

Who will the regulator be?

A new, independent regulator must be appointed through a fair and open competition process and be accountable (via a board) to the Secretary of State for Housing, Communities and Local Government. The regulator must be required to report annually on its progress in raising standards through key performance indicators.

The working group stipulated that independence requires that the new regulator’s chief executive must not have worked at a licensable firm in the three years prior to or following their appointment. Furthermore, members of the new regulator’s board must not have been employed by a registerable firm in the three years prior to their appointment.