Confusion remains surrounding the future of Material Information issues in the lettings and sales sectors.

For the past month there’s been a shift in how material information is handled in the property sector, particularly for estate and letting agents. 

The National Trading Standards Estate and Letting Agency Team (NTSELAT) guidance on material information has been withdrawn. This change is linked to the enforcement of the Digital Markets, Competition and Consumers Act (DMCC Act) on April 6, which superseded the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The Competition and Markets Authority (CMA) now has direct enforcement powers under the DMCC Act. 

Many agents remain uncertain about where they stand and what material information remains necessary in property details for homes to let or for sale.

However, the penalties for getting something wrong under the DCMM Act are severe, including possible criminal prosecution: officers of a non-compliant company may be liable for up to two years’ imprisonment. 

In addition, the potential fines are significant; either £300,000 or 10% of global turnover, whichever is greater. And these fines aren’t court-enforced – the CMA can fine you if they spot a breach.

Now PropTech giant Reapit is holding a free webinar for lettings and sales agents to discuss the issue, with the PropTech firm pledging to collate views and present them to the government in the search for clarity.

Reapit commercial director Neil Cobbold says: “What’s changed is that the definition of an ‘invitation to purchase’ is now written into UK law under the DMCC Act, rather than being set out in regulations. This shift significantly raises the stakes: failing to include or link to material information in a property advert – whether on a portal, social media, or in your agency window – is now automatically considered an unfair commercial practice.

“The DMCC Act also defines an ‘average consumer’ with some nuance as an adult who is reasonably smart, pays attention, and uses common sense.  But the Act also says that if you’re talking to a specific group (for example buyers looking at retirement properties, first-time renters or students), you need to make sure your messaging is clearly understood by that group.

“This may go as far as changing the way you show or link to the material information at every touchpoint defined as an ‘invitation to purchase’, depending on the ‘average audience’ for that specific property.

“What is clear is that the lack of property sector guidance from the CMA, combined with the withdrawal of material information guidance by trading standards, has created a lot of anxiety among sales and letting agents.”

If you want to register at the free webinar, click here.