The Office of Fair Trading (OFT) formally launched its market study into home buying and selling, following two months of discussion with interested parties on its scope.
The study, which will take a comprehensive look at the market for home buying and selling services, will consider:
The study will cover the whole of the UK, while recognizing the significant differences in how the market works in Scotland.
Heather Clayton, Senior Director of Infrastructure, said:
"With the economic downturn, we need to ensure that consumers receive a good service when buying or selling a home, from a market that is competitive, innovative and well-functioning.
We have had constructive discussions on the scope of this study with interested parties from across central and devolved government, consumer groups and the industry. This means we are starting the study with a clear understanding of the key issues."
Notes
OFT market studies are carried out under section 5 of the Enterprise Act 2002, which allows a market-wide consideration of both competition and consumer issues.
Market studies involve an analysis of a particular market, with the aim of identifying and addressing any aspects of market failure from competition issues to consumer detriment and the effect of government regulations.
Possible results of market studies include; enforcement action by the OFT; a reference of the market to the Competition Commission; recommendations for changes in laws and regulations; recommendations to regulators, self-regulatory bodies and others to consider changes to their rules; campaigns to promote consumer education and awareness; a clean bill of health.