{"id":234815,"date":"2025-05-10T14:54:22","date_gmt":"2025-05-10T14:54:22","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/major-changes-announced-regarding-material-information-guidance\/"},"modified":"2025-05-10T14:54:22","modified_gmt":"2025-05-10T14:54:22","slug":"major-changes-announced-regarding-material-information-guidance","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=234815","title":{"rendered":"Major changes announced regarding Material Information guidance"},"content":{"rendered":"


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\"\"<\/a>Major changes have been announced regarding Material Information guidance, which was designed and implemented to help support sales and letting agents meet their legal obligations under the Unfair Trading Regulations 2008.<\/p>\n

Initially introduced in late 2023, the guidance was introduced in phases to help bring standardisation within the sector and assist consumers in making more informed decisions by delivering unified base information regarding properties.<\/p>\n

However, all parts of the current Material Information guidance have been withdrawn with immediate effect, as of 8 May 2025, due to the new Digital Markets, Competition and Consumers Act 2024\u00a0replacing and superseding the initial legislation for which the guidance was based upon.<\/p>\n

National Trading Standards are currently in the process of removing all details regarding Material Information guidance from their communications channels.<\/p>\n

However, the duty to provide usable \u2018Material Information\u2019 is not being scrapped and the risks for non-compliance are potentially much higher \u2013 with more substantial penalties from the Competition and Markets Authority expected.<\/p>\n

Property agents must now comply with the legal requirements regarding material information in the Digital Markets Competition and Consumers Act (DMCC Act). The new expectations require traders to behave fairly and diligently within their dealings with consumers. A trader might be in breach of it, for example, if they do not provide key information which is material to a decision on a property, act unfairly, mislead, or behave aggressively towards consumers.<\/p>\n

The Competition and Markets Authority has so far published the following guidance.<\/p>\n

+ General guidance on Unfair Commercial Practices<\/a><\/p>\n

+ What businesses need to know about unfair commercial practices<\/a><\/p>\n

+ Guidance on the CMAs approach to consumer protection<\/a><\/p>\n

Nathan Emerson, CEO of Propertymark, commented:\u00a0\u201cIt is essential that all agents are aware of this crucial announcement and how it fundamentally affects their business and operations. While it\u2019s right to consider there will always be progression within the sector, there has been much time invested in ensuring compliance across the industry regarding Material Information, for it to become superseded by new legislation in less than two years and with limited sector\u00a0guidance for both consumers and practitioners to rely on, this could cause considerable confusion.\u201d<\/p>\n

Lesley Horton, interim Ombudsman, The Property Ombudsman, commented: \u201cWhilst the guidance has been withdrawn, we champion the principle of giving consumers and agents support in understanding what material information should be disclosed upfront.<\/p>\n

\u201cOur enquiry and casework data tells us that agents will need guidance to help them understand what is and what is not material information. We remain committed to working with National Trading Standard and industry stakeholder in this respect.<\/p>\n

\u201cIn the interim, our experienced decision makers will continue to make fair and reasonable decisions on a case-by-case basis using our Codes as the standard of professional agency practice\u201d<\/p>\n

Sean Hooker from Property Redress stated: \u201cUpfront and transparent information is essential for the property sector to act effectively and fairly.<\/p>\n

\u201cThe work done by many in the industry to ensure the material information is ingrained into the culture and practices of professionals in both property sales and lettings over recent years has been invaluable in raising standards and protecting consumers.<\/p>\n

\u201cWhilst we at Property Redress have been at the forefront of resolving issues between agents and their customers there is a real need for clear and robust guidance to help prevent damaging mistakes being made.<\/p>\n

\u201cWe will however continue to resolve the complaint\u2019s raised with us following the principles and values established, but also to apply the strengthened measures in the new legislation.\u201d<\/p>\n

Paul Offley, compliance officer at The Guild of Property Professionals, added: \u201cThe\u00a0Guild has consistently championed initiatives that enhance transparency and consumer\u00a0protection. The phased rollout of Material Information guidance was a significant step in that\u00a0direction, and our members invested considerable time and resources to adapt their\u00a0processes and ensure compliance. We understood this to be a progressive journey towards\u00a0greater clarity for everyone involved in property transactions.\u201d<\/p>\n

He continued, \u201cIt is therefore concerning that this established guidance has been withdrawn\u00a0so abruptly, less than two years into its implementation. While we recognise that legislation\u00a0evolves, the speed of this change, with the DMCC Act now taking precedence, has the\u00a0potential to cause considerable confusion for both practitioners and consumers, especially\u00a0given the current lack of sector-specific guidance for the new Act.\u201d<\/p>\n

\u201cWe will continue to work with our members to help raise awareness and to ensure consumers are provided with the information they need to make an informed transactional decision.\u201d<\/p>\n

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