Group to review consumer concerns over estate agents

Unrealistic property guide prices, "gazumping" and the level of estate agents' fees are to come under the scrutiny of a new working group set up by the Minister for Justice, Mr McDowell.

The group, which will meet for the first time tomorrow, has been asked to review current practice within the estate agent and auctioneering profession and make any necessary recommendations for new legislation.

Industry representatives and consumer bodies are included in the group which has been asked by the Minister to make specific recommendations in relation to qualifications for auctioneers and letting agents. It has also been asked to look at the need for a code of ethics for the profession, a regulatory body, and a system for dealing with complaints.

Mr Alan McCarthy, former chief executive of An Bord Trachtála, will chair the group. While it has a wide remit, Mr McCarthy said he will "zero in" on the issues of concern to consumers. "What has received a fair bit of comment in the media recently is the problem of guide prices and what the property eventually is sold at. Our study will certainly embrace that."

As well as the practice of "gazumping" - where an offer is accepted by the vendor and subsequently rejected for a better price - Mr McCarthy said he will look at the practice of "gazundering".

"Gazundering happens when the market is down and buyers then start pulling down the price they have offered. This study is not just about the profession; it's about people's behaviour as well."

The educational qualifications for entry to the profession would also be discussed, he said. Currently no formal qualifications are necessary to work as an estate agent.

"We're taking as wide a view as possible, but we intend to zero in very quickly on what concerns consumers and the industry and what needs to be changed."

Mr McCarthy said he hopes to report to the Minister by the end of the year and intends to place advertisements inviting submissions from interested parties.