The Consumer Protection from Unfair Trading Regulations 2008
Prohibition of unfair commercial practices
Misleading actions (Document link)(2) A commercial practice satisfies the conditions of this paragraph—
(a) if it contains false information and is therefore untruthful in relation to any of the matters in paragraph (4) or if it or its overall presentation in any way deceives or is likely to deceive the average consumer in relation to any of the matters in that paragraph, even if the information is factually correct; and
(b) it causes or is likely to cause the average consumer to take a transactional decision he would not have taken otherwise.
Leasehold Residential Properties
8 out of 10 buyers of Leasehold homes think they own the property!
In reality they buy a tenancy agreement. The buyer becomes a long term tenant – owning a leasehold contract with liabilities for many overheads and costs, generating profit for the landlord freeholder who retains ownership. More
Does a “For Sale” sale board externally advertising a property adequately describe it’s a lease contract for sale? NO
Is it be likely to deceive the average consumer? YES
Wouldn’t “Lease For Sale” on sale boards and introductory adverts, as used for commercial property, better meet the Consumer Protection from Unfair Trading Regulations.
Shouldn’t the Lease, its length, contractual costs and liabilities also be included in all published property details? It seems the Trading Standards and even Property Ombudsman agrees, but why does nobody do anything about it!
Miss-sold by deception!
Is the average consumer deceived?
Propertymark the official publication of the National Association of Estate Agents, advises 57% of leasehold house owners didn’t understand what being a leaseholder meant until they had already purchased the property.
Why isn't it being enforced?
Duty to enforce
19.—(1) It shall be the duty of every enforcement authority to enforce these Regulations.
Omissions in adverts are equally confusing and greatly damage those who are lawful, the honest builder or estate agent, but especially the customer.
The answer isn't difficult
It’s a simple immediate and easily enforceable step to help stop more consumers being defrauded.
Deceptive advertising is damaging honest businesses and crippling innocent buyers.
Please also see www.hoptonbuild.co.uk/estateagents/