Debate rages over increased competition in mortgage market

Updating existing legislation to allow more online estate agents to compete in the property market would create better deals for homeowners and buyers, it has been claimed.

According to the Office of Fair Trading OFT, greater competition would lead to the availability of cheaper mortgage rates.

The report has led to speculation that companies such as Tesco and Google will begin to offer property services, potentially diverting business away from traditional estate agents.

However, Peter Bolton-King, chief executive of the National Association of Estate Agents NAEA, said the OFT had failed to recognise that better regulation of the home buying and selling market is required.

He commented: "Buying a home is often the largest single transaction of a person's life and it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed."

Mr Bolton-King said a greater level of regulation is needed to ensure that professional, qualified estate agents are not confused with those who fail to meet basic professional standards.

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2010-02-24 13:42:14 © Moneyextra.com