Should property listings now include Stamp Duty costs?

The shift in oversight of material information rules could mean agents should now display Stamp Duty costs and Land Registry fees on their property listings, it has been claimed.

Policing and enforcement of material information rules has now shifted from Trading Standards to the Competition and Markets Authority after the Digital Markets, Competition and Consumers Act 2024 (DMCC) replaced the Consumer Protection Regulations 2008.

Trading Standards has controversially removed its material information guidance with no sector specific advice.

Industry trainer Mike Day, of Integra Property Services, said the DMCC has not changed the requirements for material information to be provided.

He said it highlights five areas when it comes to material information such as misleading actions, misleading omissions, aggressive practices, contraventions of the requirements of professional diligence and banned practices including using false reviews

Day said the CMA guidelines are very clear about the need to show the full costs of products and services that would be incurred by a consumer and specifically where those costs are mandatory and unavoidable.

However, he suggests the requirement to show mandatory and unavoidable costs could now mean a new requirement for agents, displaying Stamp Duty and Land Registry fees.

Day said:

“Whilst these may vary based on the position of the consumer, Stamp Duty for a first time buyer or surcharges for a buyer of a second property for example,  they are, in my opinion, clearly, material pricing information which means that they should be revealed when an agent is making an invitation to purchase by marketing a property.

“All of the major portals already include a Stamp Duty calculator which is fine, although the display of which could probably be more obvious and prominent. However, there is no reference to land registration fees and, on agents’ individual websites there are very few that make any reference to either of these two elements.”

He adds that the CMA has stated that, for the first 12 months, it will be applying a four Ps approach in their consumer protection work – pace, predictability, proportionality and process.

Day added:

“Agents should, in my opinion, familiarise themselves with the 4 Ps and seek to comply.

“The CMA has also said they will be focused initially on ensuring harmful conduct is stopped quickly and that consumers are compensated.

“The law does not apply retrospectively and so penalties can only be applied to infringements after the commence date.

“Crucially it has also said it will take into account any proactive and meaningful steps that a business has taken in good faith to correct infringing conduct.”

Day said agents should be reviewing their businesses in regards the collection and provision of material information and, where necessary, building in DMCC compliance to all systems and processes.”

Kindly shared by EstateAgentTODAY   Picture courtesy of Adobe