Ministers order crackdown on rogue estate agents

Rogue estate agents are to face a clampdown which could see them prevented from practising if they fail to abide by strict new rules to stop them ripping off the public.

Among the proposals being prepared by ministers to protect consumers is the right to compensation from agents who are responsible for deals going wrong. They will be banned from sending out bogus mailshots that claim buyers are waiting to purchase homes. They will also be prevented from falsely inflating prices and putting undue pressure on clients to sign contracts. Trading standards officers will be able to launch unannounced raids on estate agents and demand to see files on deals.

Agents will have to join an ombudsman scheme to regulate their practice and will be banned from trading if they fail to sign up. They will be forced to keep records of each transaction to be made available to investigators. They could also face prosecution if they exploit vulnerable clients.

They also want to clamp down on estate agents who knowingly agree deals with two sellers at the same time. Also outlawed would be what is called "simmering", where details of previous sales in the same area are changed to support the price of an overvalued property.

"It's important to crack down on unscrupulous estate agents," said Alistair Darling, the Trade and Industry Secretary. "Buying a house is the biggest purchase most of us make."