A Guide to Consumer Protection from Unfair Trading Regulations and Material Information in the property market

Did you know that the Consumer Protection from Unfair Trading Regulations are applied to the sale and let of properties in the UK? If you are buying or selling, renting or letting, take a look at our handy guide which explains how CPR's might affect you.

What are Consumer Protection Regulations (CPRs)?

CPRs exist to provide transparency to the buyer and the contract holder (tenant) to ensure accurate information is given to allow them to make informed decisions BEFORE they make a transactional decision about a property.

What is material information?

Material information is “information which the average consumer needs, according to the context, to take an informed transactional decision” as defined in regulation 6(3) of the Consumer Protection Regulations 2008.

How does this apply to Estate Agency?

Estate agents are held to the same legal standards as retailers and are required to present essential details about properties to consumers. Enabling consumers to make informed decisions about properties. This is done in three parts A, B and C.

Part A

Part A covers initial information, for example what you would see when looking at adverts in an estate agent’s window i.e. Council tax, asking price and tenure are examples of material information concerning a sale property. For a rental material information will cover the deposit you would have to pay to secure the property.

Part B

Part B covers the physical characteristics of a property i.e. the number and type(s) of room, utilities, parking, broadband type and mobile phone signal. and must be obtained. Part B information can be found in the property brochure provided by your estate agent.

Part C

Part C covers information that may or may not need to be established depending on whether the property is affected or impacted by the issue in question. i.e. accessibility, building type, flood risk, restrictions & rights, planning permission, and coalfield or mining areas. Should there be an issue regarding part C and further information is required, property owners/sellers and agents are required to seek the services of qualified professionals such as a solicitor. 

As a seller or a landlord it makes sense to provide this information up front, otherwise a buyer or a contract holder might change their decison further along the line, and not only will this be costly for you, if material information has been knowingly witheld, it is a criminal offence and you could be sued and/or prosecuted.  Estate agents should not be silent on issues that might affect the average consumer's decision and material information should be easily accessible on property advertising.  If it is not and you are thinking of buying or renting the property, you should ask the estate agent to supply it to you so you can make an informed decision.  

 For more information on Consumer Protection Regulations and Material information and how it can impact you, contact us today.

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