From rising calls for regulation to pending government decisions, 2024 has brought estate agents both challenges and opportunities. Amongst the uncertainty, a commitment to raising professionalism, improving standards, and navigating the evolving legislative landscape has demanded resilience, adaptability, and a proactive approach to compliance. 

In our review of 2024, we delve into the key developments, market trends, and policy shifts that have shaped the industry this year. We also highlight how estate agents can stay informed and prepared to meet their obligations while building trust and delivering excellence in a competitive marketplace. 

January

A positive start to the year for estate agents

In January 2024, the UK property market experienced a notable uptick in activity. The average asking price for homes increased by £4,571, marking the most significant January rise since 2020. This surge was attributed to a higher number of new properties entering the market and a 5% increase in buyer inquiries compared to the same period in 2023. 

Legal Eye shortlisted for ‘Risk and Compliance Support Service’ of the Year award.

The new year began on a high note with Legal Eye’s nomination for ‘Risk and Compliance Support Service of the Year’ at The British Conveyancing Awards. This recognition highlighted our unwavering commitment to supporting compliance professionals.  

February

HMRC reminds Estate Agents of their anti-money laundering (AML) responsibilities

Following a rise in applications for AML supervision from businesses that did not have the necessary risk management procedures, we shared how HMRC was contacting agents to remind them of their responsibilities. The regulator hoped the reminder would encourage compliance with the AML regulations and ensure no registration delays.  

Legal Eye sponsor and speaker at the 2024 Conveyancing Association Conference

As 2024 unfolded, Legal Eye was a proud sponsor at the prestigious Conveyancing Association Conference. At this industry-leading event, our managing director, Paul Saunders, joined a panel discussion on ‘Source of Funds and Digital Signatures’, contributing to key conversations on AML, digital onboarding, and mandatory upfront information. 

March  

Consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017  

In March 2024, HM Treasury published its consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs).  

In addition to other core themes, the consultation looked at how to make customer due diligence more proportionate and effective, and how to provide additional clarity on the scope of the MLRs. Responding to the consultation, Propertymark said: “Much of the guidance provided by HMRC focus on when to carry out checks and not how they can be completed effectively.”  

Legal Eye wins ‘Risk and Compliance Support Service of the Year’ award

Following our shortlisting at the start of the year, we were honoured to be named ‘Risk and Compliance Support Service of the Year’ at the fourth annual British Conveyancing Awards. To say we were thrilled is an understatement! 

Biggest challenges facing estate agents in 2024

As the nights got lighter, estate agents across the UK geared up for what is traditionally one of the busiest times of the year. But in 2024, it was not all smooth sailing for those working in the sector, and agents faced various challenges as they looked to the rest of the year. 

In March, we shared some of the issues property professionals were facing, including: 

• High interest rates
• An ever-increasing regulatory burden
• Slow transaction times
• A lack of communication with other parties
• Technological advancements  

April

The problem with Trusts and AML  

The Register of Overseas Entities (ROE) was designed to thwart foreign criminals attempting to launder money through UK property. However, loopholes in the legislation enabled some foreign owners to conceal their identities. One such loophole is trusts. In our latest blog, we delved into the problem and looked at changes designed to help estate agents struggling to meet their AML commitments.  

Government rules out independent regulator under Renters Reform Bill

A parliamentary question-and-answer session in April 2024 suggested the government was not willing to include the introduction of an independent property agents regulator as an amendment to the Renters Reform Bill. Baroness Swinburne, who was the Parliamentary Under Secretary of State, Department for Levelling Up, Housing and Communities, said:   

“The Government are committed to raising professionalism among property agents. Property agents must already belong to a redress scheme. The Government’s Leasehold and Freehold Reform Bill and Renters (Reform) Bill will help drive up overall standards. Legislating to set up a new regulator would, however, require significant additional legislative time that we do not have in this parliament. We will meanwhile continue to work with industry on improving best practice, including on codes of practice.” 

May 

HMRC levies fines on hundreds of estate agents

We shared the latest HMRC figures in May, highlighting that over 200 estate agency businesses had been fined for AML failures between April and September 2023. HMRC’s fines ranged from £1,500 to over £50,000. The total cost to estate agents was more than £1.6 million.  

LUHC evidence session

At an evidence session of the LUHC Committee’s inquiry into the home buying and selling process, Paula Higgins, chief executive of the HomeOwners Alliance, questioned why, as gatekeepers to people buying or selling property, estate agents aren’t regulated. Also speaking at the session, Timothy Douglas, head of policy and campaigns at Propertymark, agreed that agency regulation is needed.  

June 

Growing calls for estate agency regulation

In June, in our latest blog, we looked at the growing calls from key industry figures for estate agency regulation.  

Buyers favour proposals for more upfront information

A report revealed that buyers strongly favoured proposals for agents to provide more upfront information about the properties they are selling.  

Update on TA6 property information form

The Law Society postponed the compulsory use of the new TA6 property information form. Concerns from conveyancers about legal liabilities and lack of consultation prompted this decision. As a result, the Law Society postponed the mandatory implementation of the TA6 (5th edition, 2024) for accredited CQS members by six months.  

July 

Combatting dirty money in the UK property market

We discussed the staggering scale of illicit funds funnelled through the UK property market. With estimates suggesting that billions are laundered annually, we highlighted the case of an Azeri tycoon who built a property empire worth £50 million via an “extraordinarily complex” money laundering operation. In our blog, we looked at how agents can combat dirty money and stay on the right side of the law 

August

Key material information missing from property listings

Analysis revealed crucial data required under the National Trading Standard Estate and Lettings Team (NTSELAT) guidelines was being omitted from estate agent listings.  

Propertymark reminds agents of AML obligations following high fines

Propertymark issued a crucial reminder to agents about the importance of AML compliance following HMRC’s announcement of over £1.6 million in fines for breaches within the sector. 

September 

Propertymark called for practical AML estate agent guidance

Propertymark called on HMRC and the Treasury to improve guidance on AML. According to Propertymark, while most estate agents were committed to AML compliance and 95% carried out the required checks, many were confused about customer due diligence. With agents risking the wrath of HMRC if they do not comply with the latest AML regulations, we looked at what estate agents could do to boost AML compliance.  

The cost of poor sales progression revealed

Research revealed poor sales progression costs estate agents £938,697 per brand or £97,274 per branch annually. The study, which analysed performance data from the UK’s top 500 estate agents, underscored how critical efficient sales progression is. 

October 

The Renters’ Rights Bill passed its second reading in the House of Commons

Key proposals included abolishing Section 21 “no-fault” evictions, modernising the dispute process, introducing a new landlord database, and addressing future changes to EPC standards. 

AML compliance among estate agents surged

The fight against money laundering in the property sector gained momentum, with estate agents ramping up AML checks. This surge was attributed to a combination of factors, including increased regulatory scrutiny, high-profile cases of money laundering, and a better understanding of risk. In October, we delved into this issue, looking at what agents must do to ensure they don’t get left behind.  

Estate agent regulation still on the government’s agenda

The government confirmed regulation for estate agents remained a priority – as reiterated by the Housing Minister. To prepare, agents should: 

• Stay informed on regulatory updates
• Prioritise training and qualification requirements  
• Build a proactive compliance culture to stay ahead. 

Agents reminded to renew their AML registration

A compliance expert at The Guild of Property Professionals issued a critical alert for all estate agencies: Don’t forget to renew your AML registration. Missing the renewal deadline can result in hefty fines and reputational damage.  

Warning not to retain client data indefinitely  

The Guild of Property Professionals warned estate agents that holding onto client data indefinitely could lead to serious breaches and penalties. 

November 

AML policies not up to standard

In its latest update, Propertymark highlighted some concerning statistics:  

• HMRC fined over 200 estate agency businesses a total of £1.6 million for AML failings in just a six-month period.
• Fines ranged from £1,500 to a jaw-dropping £50,000.  

With HMRC tightening the screws and handing out hefty fines for non-compliance, we set out what agents could do to keep HMRC happy, protect their business, and build trust with clients.  

Thousands of agency listings not compliant

A new report revealed thousands of estate agency listings do not meet Trading Standards rules, raising serious concerns about compliance across the industry. 

Key issues flagged included: 

•  Missing or inaccurate material information in property listings 
• Non-compliance with rules designed to protect consumers and promote transparency 
• Increased scrutiny from authorities as agencies fail to meet required standards. 

Public trust in estate agents reaches an all-time high 

The latest survey of over 1,000 Brits showed 37% trusted estate agents. This is a significant milestone for the industry, but it’s not all good news. Overall, the profession was still viewed with scepticism, with more people distrusting estate agents than trusting them. 

December 

Estate agents need to appeal to young sellers 

Younger sellers are critical to a sustainable and thriving property market. To connect with this tech-savvy, values-driven demographic, estate agents must prioritise transparency and efficiency. However, a 2024 survey revealed that fewer than half of 18 to 34-year-olds trusted agents to value their homes accurately. In December, we looked at what agents could do to build trust with this generation of sellers.  

Looking forward to 2025

We extend our sincere gratitude to our clients, partners, employees, and industry colleagues for your trust and collaboration throughout 2024. 

As we turn towards 2025, we remain steadfast in our commitment to supporting estate agents in navigating an ever-changing regulatory environment. Whether through expert guidance, innovative resources, or training tailored to your needs, we’re here to help you stay compliant, competitive, and ahead of the curve.