Following an OFT investigation, four national quick house sale companies have agreed to improve their business practices.
Box MX Limited, BTA Properties Limited, Property Rescue Limited and Gateway Homes UK Limited have promised to embed good practice and address wider concerns highlighted in the OFT’s market study published earlier this year. They have given the OFT undertakings which include:
- ensuring marketing materials clearly, accurately and prominently set out key information and risks relating to the sales process
- conducting valuations in a fair and professional manner, and in good faith
- promptly sharing with consumers relevant information about the progress of the sale, including anything that might affect the final offer price or completion date
- promising not to reduce conditional or final offer prices without a valid reason.
These undertakings reflect the findings of the OFT’s study. This concluded that quick house sale companies can provide a beneficial service for people who require a fast sale of their home but identified some business practices that may not comply with the law and fall short of the standards the OFT would expect of businesses in this sector. These included giving misleading initial valuations, late reductions of the offer price and operating unclear fee structures.
As a result, some home sellers said that they were not always able to make confident use of the service and that ‘bad deals’ had cost them significant amounts of money.
Gaucho Rasmussen, OFT director, goods and consumer group, said: ‘We are pleased these companies have constructively worked with us and agreed to undertakings which will provide greater clarity and confidence to consumers considering a quick house sale. We expect others in the sector to take note of the information we have provided and review their own practices.
‘Anyone who wishes to sell their home should always consider their full range of options. Should they choose to use a quick house sale company, we advise that they consider carefully what they are signing up to, ask questions and seek independent advice if they are unsure. Moving house can be very stressful and it is important consumers understand how a quick house sale differs from a more traditional type of sale and what this means for them in practice.’
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