Estate and lettings agents say they feel unsupported by the government after \u2018drip pricing\u2019 was outlawed, which is when consumers see a low initial price but extra fees are added later.<\/p>\n
Drip pricing has been forbidden in the Digital Markets, Competition and Consumers Act 2024, which came into force on 6 April 2025.<\/p>\n
However, agents are unsure what constitutes drip pricing.<\/p>\n
For example, it\u2019s speculated that failure to include or link to accurate pricing and property details in a property advert \u2013 whether on a portal, social media, or in your agency window \u2013 could be automatically considered an unfair commercial practice.<\/p>\n
Previously agents followed the National Trading Standards Estate Agency (NTSELAT) guidance on Material Information, but the industry is in the dark until the Competition and Market Authority (CMA) provides its own guidance.<\/p>\n
A survey from PropTech firm Reapit found that 96% of agents feel unsupported.<\/p>\n
To support the industry, Reapit invited agents to attend a webinar in early June entitled \u2018Beyond the basics: What the DMCC Act really means for agents.\u2019<\/p>\n
More than 400 agents registered to attend the event, which was hosted by their commercial director, Dr Neil Cobbold and featured contributions from David Smith, partner at law firm Spector, Constant and Williams, and Greg Tsuman, PPARLA and managing director of lettings at Martyn Gerrard.<\/p>\n
During the webinar, David Smith told attendees that he did not believe agents would be a primary target for the Competition and Markets Authority \u2013 which is responsible for enforcing the DMCC Act, saying \u201cl see this as an evolution, not a revolution\u201d.<\/p>\n
Smith added that past prosecutions had involved extreme cases of misleading consumers.<\/p>\n
While in theory, breaches of the act could involve significant fines, \u2013 up to \u00a3300,000 or 10% of turnover, whichever is greater\u2013 he stressed that agents who were open and honest about properties in adverts had little to fear.<\/p>\n<\/p>\n
Smith said: \u201cThis is about misleading omissions. It\u2019s a tidying-up exercise to strengthen consumer protection regulations \u2013 the DMCC Act covers a wide range of industries.<\/p>\n
\u201cYou are required to provide information that is reasonably within your knowledge.<\/p>\n
\u201cThe rules still are what they have always been \u2013 not every piece of information has to be made available to everybody.\u201d<\/p>\n
Greg Tsuman agreed that until further guidance is published, agents need to ensure they are being open and honest in all marketing materials.<\/p>\n
Tsuman said: \u201cAsk reasonable questions of (sellers and landlords) and treat others as you would wish to be treated yourself.<\/p>\n
And Neil Cobbold, while confirming that at this stage Reapit\u2019s existing features allow agents to disclose enough information to accommodate the DMCC Act, added \u201cmake sure that if you know something, you disclose it\u201d.<\/p>\n
DMCC Act impacts more than property listings<\/p>\n
Cobbold added: \u201cThe view from the panel is that the Competition and Market Authority would focus on its 4 Ps \u2013 proportionality, predictability, process and pace \u2013 when it comes to enforcement in 2025.<\/p>\n
\u201cThis means they will aim to resolve issues early and ensure that any penalties are proportionate. However, agents must not only look at how they present property listings, but also at how they advertise their sales and lettings services to potential vendors and landlords.<\/p>\n
\u201cCracking down on \u2018drip pricing\u2019 has been highlighted by the CMA as one of the areas they\u2019ll be acting on in the first 12 months so ensuring all fees are disclosed upfront when selling services will be key for agents.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Estate and lettings agents say they feel unsupported by the government after \u2018drip pricing\u2019 was outlawed, which is when consumers see a low initial price but extra fees are added later. Drip pricing has been forbidden in the Digital Markets, Competition and Consumers Act 2024, which came into force on 6 April 2025. However, agents […]<\/p>\n","protected":false},"author":1,"featured_media":643,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n