Property listings are not a supermarket shelf
The CMA’s current definition of an invitation to purchase risks drawing property listings into a framework designed for simple retail transactions. Listings are a means of marketing a property and prompting further engagement, not a binding contractual offer. In most cases, buyers will view several homes, carry out multiple checks, and enter lengthy negotiations before even reaching the stage of submitting an offer. Property-specific guidance or exemptions are needed, and the CMA must recognise the unique nature of property transactions when enforcing the DMCCA.
If property listings are ultimately brought within the scope of invitation to purchase rules, exemptions will be essential. CMA guidance should:
- Recognise that prices in property sales and lettings are liable to change as new information arises, such as survey results or planning developments.
- Allow disclaimers in listings to make clear that the advertised price is based on the current valuation and may change.
- Distinguish between the property price (which is crucial for the seller) and additional costs for the buyer, which may only become clear during negotiations.
Price flexibility benefits both parties, allowing transactions to proceed smoothly without repeated relistings. Restricting this flexibility could reduce the number of successful sales and increase delays.
Agents don’t control the final price
Sellers and landlords retain ultimate authority, and asking prices can change at short notice. Mortgage valuations, surveys, and legal checks often alter the agreed figure weeks into the process.
If listings were treated as invitations to purchase, this could expose agents to accusations of misleading consumers when the changes are outside their control.
Vendors can change their asking price against the advice of the agent, and refusing such changes is not considered best practice under The Property Ombudsman Code of Practice.
Buying a property requires financial and legal expertise
Transactions involve multiple professionals – solicitors, conveyancers, surveyors, mortgage lenders, and sometimes specialist inspectors. Many of the costs that influence a buyer’s decision, such as stamp duty, legal fees, or survey costs, are not within the agent’s remit to calculate.
Expecting agents to provide a single, definitive total price in a listing would be misleading. Instead, the CMA should encourage negotiation and discussion between agents, buyers, and vendors, where all the necessary details can be explained clearly. This would ensure consumers are better informed about additional costs and taxes, rather than assuming the listing contains everything they need to know.
Rental fees and deposits
Charges such as late payment fees or replacing lost keys should not need to appear in listings where they are already covered by legislation such as the Tenant Fees Act 2019. However, the CMA should issue clearer guidance on how deposits should be displayed, given the variations across UK nations.
Other legal barriers
Transactions can be halted by legal requirements such as anti-money laundering checks. In some cases, a Suspicious Activity Report may prevent a sale from proceeding, even when both buyer and seller are willing. This must be reflected in CMA guidance to ensure agents are not unfairly penalised.
