The Property Ombudsman has welcomed new Government proposals to clarify what information estate agents must share during property sales.
In 2024, the ombudsman investigated 617 complaints from consumers who said they were misinformed or not given key details during home purchases. Many of these cases involved information that buyers believed would have changed their decision to buy.
A consultation launched by the Ministry of Housing, Communities and Local Government on 6 October aims to set clearer expectations around what sellers and agents must disclose. Currently, around 1 in 3 property transactions fail, costing buyers and sellers about £400m each year in wasted expenses.
Previous guidance on material information was based on the Consumer Protection from Unfair Trading Regulations 2008, later replaced by the Digital Markets, Competition and Consumers Act 2024. Since this update, there has been no defined list of what details must appear in property listings, leaving room for inconsistent practices.
Undisclosed issues have included:
The condition or size of a building or plot
Flood risk and restrictive covenants
Access rights and utilities supply
Service charges and planning permissions
Examples investigated by the ombudsman included an investment property that was misrepresented and a fire-damaged property sold without prior warning.
The Government consultation remains open until 29 December 2025, seeking views from consumers, agents, and industry bodies on how to standardise disclosures.
Information-related breaches of the Code of Practice for Residential Estate Agents in 2024:
Material information: pictorial 31, verbal 74, written 242 (paragraph 7i)
Particulars agreed with seller: 180 (paragraph 7j)
Leasehold issues: years remaining 4, restrictions or covenants 23, tenure 13, circumstance/event 3, event fees 1, ground rent 5, other fees/charges 3, service charges 17 (paragraph 7k)
Liability for incorrect information: 14 (paragraph 7m)
Marketing standards – legal, decent, honest and truthful: 7 (paragraph 7n)
“We welcome any moves to make such an important and complex transaction clearer for consumers,” said Lesley Horton, property ombudsman (pictured). “Speaking to businesses, the industry is also supportive of clear guidance which is explicit about what information agents and sellers must disclose. Our casework shows that hundreds of buyers and sellers are falling foul of inconsistent practice every year, resulting in added costs and aborted sales.”
