The Irish Times reports that the Government is to consider setting up a new body to regulate the activities of auctioneers and estate agents, on foot of a report which has been presented to the Minister for Justice. Furthermore, it will restrict the setting of unrealistic guide prices for houses.

The report of a working group which has spent a year examining the profession recommends the establishment, “as a matter of urgency”, of a new statutory Auctioneers and Estate Agents Regulatory Authority. The current regulatory system is “outdated and inadequate” for modern Ireland, the report says.

The Minister for Justice commissioned the report last year in response to years of complaints from consumers about various estate agents’ practices. These include the systematic setting of unrealistically low guide prices and “gazumping” - sellers agreeing a price for a property with a buyer only to accept a higher price from another buyer later.

The Irish Times has learned the report, delivered to the Minister in the past fortnight, says there is no system of supervision, discipline or of redress for consumers. While the industry has its own code of conduct and indemnity procedures, these are not enough for the modern property market, the report says.

A spokeswoman for the Minister confirmed yesterday the report of the working group, chaired by former chief executive of Bord Trachtla Alan McCarthy, had been received. She declined to give any details of its contents, saying Mr McDowell had not yet studied it but he hoped to publish it in the autumn.

The working group included industry and consumer representatives, as well as officials from a number of Government departments. Its role is advisory and the Government is not obliged to accept any of its recommendations.

The residential property market currently consists of some 1.5 million properties worth over €400 billion. Therefore, it “should operate, and be seen to operate, in an efficient, transparent and proper manner”, the report says.

Posted: 08|24|05 at 5:10 pm. Filed under: Auction News.