Housebuyers and sellers can turn to an ombudsman for protection as the industry bids to clean up its image.

For the first time, estate agents nationwide can subscribe to the voluntary scheme which offers the public greater protection.

The idea has come from the industry in an effort to clean up its image.

Ombudsman David Quayle outlines the scheme (2' 37")

The service provides a code of practice for agents, makes free and impartial advice available for both buyers and sellers and will offer the chance for appeal to the ombudsman David Quayle.

The result of any appeals will be binding on the agent.

A similar service already exists for users of the big real estate chains.

David Quayle: Decisions will be binding

The new service, supported by the Office of Fair Trading, will be available to any independent agents that belong to one of the professional bodies.

Whether it succeeds depends on how many agencies sign up for the service - 1,200 are expected to join for the launches - and whether housebuyers and sellers begin to avoid agencies which are not members.

The launch of the new service comes in the wake of a government task force which is examining the home-buying process.

Protection for homebuyers

The study will track more than 1,000 house purchases from the moment the property is placed on the market to when the buyer moves in.

It will be targeting practices like reports of gazumping which have increased in line with the current buoyancy in the housing market.

This is where a house seller accepts an offer but then pulls out after receiving a higher one.

The office of Fair Trading has issued a stern warning to estate agents, saying it will not hesitate to ban those which engage in unscrupulous practices.

Other complaints include:

Failing to declare a personal interest to a seller - for example the agent may have an associate such as a property dealer who may want to buy the house.
 

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