Property listing sites and estate agents are still not providing consumers with sufficient information upfront despite the introduction of new guidance, a consumer group said.
HomeOwners Alliance (HOA) reviewed 150 leasehold property listings on Rightmove, Zoopla and OnTheMarket and found insufficient detail on whether a home was leasehold, a home’s energy performance and safety issues.
This is despite estate agents having to comply with Consumer Protection against Unfair Trading Regulations (CPRs) when describing properties, requiring them to avoid omitting information, give accurate information and not take actions that could cause a consumer to make a transactional decision when they otherwise would not have.
Additionally, guidance introduced by the National Trading Standards Estate Agency and Lettings Team (NTSELAT) in 2023 requires estate agencies to provide material information about properties.
HOA found an improvement in the share of listings that stated whether a property was leasehold or freehold, with this included in 94% of listings. Some 78% of listings also showed how many years were left on a lease.
However, just 62% of listings mentioned service charges and less than half – 49% – included details of ground rent. Just a small proportion – 9% – had information about the date of the next ground rent review.
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Although it has been a legal requirement to include a property’s Energy Performance Certificate (EPC) rating since 2013, HOA found that 24% of listings did not have this information.
Two-thirds included a home’s council tax band, despite this being a requirement. The review found that property listings in London were less likely to have this information – with 55% having this included – than in Manchester, where 77% stated this.
Just nine of the 45 high-rise property listings mentioned having an EWS1 certificate, while just 5% had details about accessibility and restrictions of a property.
Paula Higgins, CEO of HomeOwners Alliance, said: “We know location, price and parking are up there as the top things people look for when buying a home. But very quickly after that, we want to know about any potential deal-breakers: Is it a flat with only a few years left on the lease or sky-high service charges? Is there cladding [that] means we’ll struggle to get a mortgage and could face unfair costs? Is there a poor energy rating that means the house costs double what it should to run?
“So the industry’s move to do more in providing information that could materially impact our decision to buy a home is very welcome. But a year on, the picture is still patchy and simply not good enough. Homeowners shouldn’t have to wait until they are three months down the line, [having] spent hundreds on legal fees and surveys, to find the ground rent is due to double, the house will cost more to heat than their current home, and they can’t get a mortgage because of cladding.”
