Property and lettings brokers say they really feel unsupported by the federal government after ‘drip pricing’ was outlawed, which is when shoppers see a low preliminary worth however additional charges are added later.
Drip pricing has been forbidden within the Digital Markets, Competitors and Customers Act 2024, which got here into drive on 6 April 2025.
Nevertheless, brokers are uncertain what constitutes drip pricing.
For instance, it’s speculated that failure to incorporate or hyperlink to correct pricing and property particulars in a property advert – whether or not on a portal, social media, or in your company window – might be routinely thought of an unfair business follow.
Beforehand brokers adopted the Nationwide Buying and selling Requirements Property Company (NTSELAT) steerage on Materials Info, however the trade is in the dead of night till the Competitors and Market Authority (CMA) gives its personal steerage.
A survey from PropTech agency Reapit discovered that 96% of brokers really feel unsupported.
To help the trade, Reapit invited brokers to attend a webinar in early June entitled ‘Past the fundamentals: What the DMCC Act actually means for brokers.’
Greater than 400 brokers registered to attend the occasion, which was hosted by their business director, Dr Neil Cobbold and featured contributions from David Smith, companion at legislation agency Spector, Fixed and Williams, and Greg Tsuman, PPARLA and managing director of lettings at Martyn Gerrard.
Through the webinar, David Smith instructed attendees that he didn’t imagine brokers could be a main goal for the Competitors and Markets Authority – which is chargeable for implementing the DMCC Act, saying “l see this as an evolution, not a revolution”.
Smith added that previous prosecutions had concerned excessive instances of deceptive shoppers.
Whereas in idea, breaches of the act might contain vital fines, – as much as £300,000 or 10% of turnover, whichever is larger– he confused that brokers who had been open and trustworthy about properties in adverts had little to concern.
Smith stated: “That is about deceptive omissions. It’s a tidying-up train to strengthen shopper safety rules – the DMCC Act covers a variety of industries.
“You’re required to offer info that’s fairly inside your information.
“The foundations nonetheless are what they’ve at all times been – not each piece of data needs to be made out there to everyone.”
Greg Tsuman agreed that till additional steerage is printed, brokers want to make sure they’re being open and trustworthy in all advertising supplies.
Tsuman stated: “Ask affordable questions of (sellers and landlords) and deal with others as you’ll want to be handled your self.
And Neil Cobbold, whereas confirming that at this stage Reapit’s present options enable brokers to reveal sufficient info to accommodate the DMCC Act, added “ensure that if you understand one thing, you disclose it”.
DMCC Act impacts greater than property listings
Cobbold added: “The view from the panel is that the Competitors and Market Authority would deal with its 4 Ps – proportionality, predictability, course of and tempo – on the subject of enforcement in 2025.
“This implies they may purpose to resolve points early and be certain that any penalties are proportionate. Nevertheless, brokers should not solely have a look at how they current property listings, but additionally at how they promote their gross sales and lettings providers to potential distributors and landlords.
“Cracking down on ‘drip pricing’ has been highlighted by the CMA as one of many areas they’ll be appearing on within the first 12 months so making certain all charges are disclosed upfront when promoting providers shall be key for brokers.”
