Estate and letting agents across the UK are facing a major regulatory shift following the immediate withdrawal of all existing Material Information guidance.
The move, effective as of yesterday (8 May 2025), comes as the new Digital Markets, Competition and Consumers Act (DMCC Act) replaces the legislative foundation on which the guidance was based.
Originally introduced in 2023 to standardise property listings and help agents comply with the Consumer Protection from Unfair Trading Regulations 2008, the phased Material Information framework was designed to bring greater transparency and consistency to the residential property market.
Its withdrawal marks a significant turning point in consumer protection enforcement, particularly for agents operating in a market already under intense regulatory scrutiny.
TOUGHER PENALTIES
Although the guidance itself has been removed, the legal obligation to provide clear and complete material information remains – and the stakes are now considerably higher.
Under the DMCC Act, property agents who fail to disclose critical information that could influence a consumer’s decision to buy or rent face tougher penalties, with enforcement now overseen by the Competition and Markets Authority (CMA).
BROADER POWERS
The CMA has been granted broader investigatory powers and the authority to impose substantial fines for breaches, signalling a more aggressive stance on compliance failures.
The risks are acute for property professionals who have built operational processes around the now-defunct guidance, particularly if they continue to use templates or listing formats that no longer meet the statutory test of fair and diligent trading.
UPDATED FRAMEWORK
The updated framework holds traders accountable not only for omissions of key facts but also for any behaviour that could be deemed misleading, aggressive or unfair. In practice, this could extend to how property details are presented, how viewings are arranged, and even the tone and content of marketing communications.
With National Trading Standards removing all references to the previous guidance from its channels, agents are left navigating a legal landscape that demands immediate adaptation, or risk exposure to significant financial and reputational damage.
CRUCIAL ANNOUNCEMENT
Nathan Emerson (main picture), Chief Executive of Propertymark, says: “It is essential that all agents are aware of this crucial announcement and how it fundamentally affects their business and operations.
“While it’s right to consider there will always be progression within the sector, there has been much time invested in ensuring compliance across the industry regarding Material Information, for it to become superseded by new legislation in less than two years and with limited sector guidance for both consumers and practitioners to rely on, this could cause considerable confusion.”
FAIR AND REASONABLE
Lesley Horton, Interim Ombudsman, The Property Ombudsman, adds: “Whilst the guidance has been withdrawn, we champion the principle of giving consumers and agents support in understanding what material information should be disclosed upfront.
“Our enquiry and casework data tells us that agents will need guidance to help them understand what is and what is not material information. We remain committed to working with National Trading Standard and industry stakeholder in this respect.
“In the interim, our experienced decision makers will continue to make fair and reasonable decisions on a case-by-case basis using our Codes as the standard of professional agency practice”
CLEAR AND ROBUST GUIDANCE
Sean Hooker from Property Redress, says: “Upfront and transparent information is essential for the property sector to act effectively and fairly.
“The work done by many in the industry to ensure the material information is ingrained into the culture and practices of professionals in both property sales and lettings over recent years has been invaluable in raising standards and protecting consumers.
“Whilst we at Property Redress have been at the forefront of resolving issues between agents and their customers there is a real need for clear and robust guidance to help prevent damaging mistakes being made.
“We will however continue to resolve the complaint’s raised with us following the principles and values established, but also to apply the strengthened measures in the new legislation.”
CONCERNING DEVELOPMENT
And Paul Offley, Compliance Officer at The Guild of Property Professionals, adds: “The Guild has consistently championed initiatives that enhance transparency and consumer protection.
“The phased rollout of Material Information guidance was a significant step in that direction, and our members invested considerable time and resources to adapt their processes and ensure compliance.
“We understood this to be a progressive journey towards greater clarity for everyone involved in property transactions.”
CONSIDERABLE CONFUSION
And he adds: “It is therefore concerning that this established guidance has been withdrawn so abruptly, less than two years into its implementation.
“While we recognise that legislation evolves, the speed of this change, with the DMCC Act now taking precedence, has the potential to cause considerable confusion for both practitioners and consumers, especially given the current lack of sector-specific guidance for the new Act.
“We will continue to work with our members to help raise awareness and to ensure consumers are provided with the information they need to make an informed transactional decision.”
WHAT WE KNOW SO FAR
The Competition and Markets Authority has so far published the following guidance.
General guidance on Unfair Commercial Practices
What businesses need to know about unfair commercial practices
