Trading Standards reveal details of new Material Information requirements

Parts B and C of the process to improve material information disclosure in property listings are published today within comprehensive new guidance for sales and letting agents.

Representing the culmination of a programme of work led by the National Trading Standards Estate and Letting Agency Team (NTSELAT) alongside industry leaders and the UK’s major property portals including Rightmove, Zoopla, OnTheMarket and Property Pal, the guidance has been developed in response to agents’ calls for clarity on what constitutes material information.

Part B is information that should be covered for all properties – such as the type of property, the building materials used, the number of rooms and information about utilities and parking. Part C is information that only needs to be established if the property is affected by the issue – such as flood risk or restrictive covenants. Part A was announced last year and includes council tax band or rate, property price or rent and tenure information (for sales).

Agents are already obliged under the Consumer Protection Regulations (CPRs) not to omit any material information on property listings. Although material information is any information that is important in helping an average consumer make a decision about a property, until now there hasn’t been a defined list of the basic information required. This has left agents vulnerable to enforcement action, and the aim of this guidance is to help them meet their obligations and reduce this risk. By engaging conveyancers to help them prepare the relevant details at the start of the sales or letting process agents will reap the benefits, with shorter transaction times and fewer fall-throughs that result from important information coming to light.

Sellers will be advised to bring a conveyancer on board at an early stage to help ensure validated information is available to the agent for marketing and that issues like restrictive covenants or boundaries are addressed at an early stage. Buyers or renters will see new data fields appearing on portals and any left empty will be flagged and will have a link explaining what’s missing. This will help consumers understand the benefits of being fully informed before embarking on moving home.

NTSELAT will be monitoring take up on the portals over the next 12 months and agents can use free text to input information whilst waiting for any dedicated categories. As ever, under the CPRs any information can be deemed material if it impacts a consumer’s transactional decision so agents should continue to be mindful of this.

In addition to the guidance on its dedicated webpage, NTSELAT has published short guides for agents, sellers and landlords, and buyers and tenants. It will also be delivering a series of webinars in partnership with steering group members.

Evidence has consistently shown overwhelming support amongst agents for the mandatory disclosure of material information, with a survey of agents in 2021 finding that 91% agreed that a defined list of basic material information would help improve clarity for the industry.

James Munro, Senior Manager of the National Trading Standards Estate and Letting Agency Team, said:

“For years, property agents have grappled with what information they should be providing and how, and when it should be disclosed. Their call for help was clear. And too many consumers suffer emotionally and financially because important information crops up late in the process and the transaction falls through. That’s why I’m delighted to publish this guidance today, as the culmination of nearly three years’ work in collaboration with our partners to define and clarify what constitutes material information and to ensure that agents can access that information promptly and with the support they need.

“This industry-wide effort will create consistency and raise standards across the board, and I would like to thank all those who were involved, in particular the property portals, industry leaders and agents themselves who have made such an important contribution.

“With all sections of the industry ready to support agents I am confident the process of change will be smooth and that the benefits – faster transactions, fewer complaints and fall-throughs and ultimately, greater consumer trust – will be quickly felt.”

List of material information for Parts B and C

(NB: The examples given are not an exhaustive list)

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Part B – information that should be established for all properties: 

1. Physical characteristics of the property:
   • Property type – e.g. house, flat, room to let, park home etc.
   • Property construction – key materials used in the main structure and other areas 
2. Number and types of room – including room measurements
3. Utilities – how they are supplied:
   • Electricity supply
   • Water supply
   • Sewerage
   • Heating 
   • Broadband – including type and an indication of speed
   • Mobile signal/coverage – including any known issues or restrictions
4. Parking

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Part C – information that may or may not need to be established depending on whether the property is affected by the issue: 

• Building safety – e,g, unsafe cladding, asbestos, risk of collapse
• Restrictions – e.g. conservation area, listed building status, tree preservation order
• Rights and easements – e.g. public rights of way, shared drives
• Flood risk
• Coastal erosion risk
• Planning permission – for the property itself and its immediate locality
• Accessibility/adaptations – e.g. step free access, wet room, essential living accommodation on entrance level
• Coalfield or mining area