Property and lettings brokers say they really feel unsupported by the federal government after ‘drip pricing’ was outlawed, which is when customers see a low preliminary value however additional charges are added later.
Drip pricing has been forbidden within the Digital Markets, Competitors and Shoppers Act 2024, which got here into pressure on 6 April 2025.
Nonetheless, brokers are not sure 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 mechanically thought of an unfair business observe.
Beforehand brokers adopted the Nationwide Buying and selling Requirements Property Company (NTSELAT) steerage on Materials Data, however the trade is at nighttime till the Competitors and Market Authority (CMA) offers 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, accomplice at regulation agency Spector, Fixed and Williams, and Greg Tsuman, PPARLA and managing director of lettings at Martyn Gerrard.
Through the webinar, David Smith advised attendees that he didn’t imagine brokers could be a main goal for the Competitors and Markets Authority – which is answerable for imposing the DMCC Act, saying “l see this as an evolution, not a revolution”.
Smith added that previous prosecutions had concerned excessive circumstances of deceptive customers.
Whereas in principle, breaches of the act may contain vital fines, – as much as £300,000 or 10% of turnover, whichever is bigger– he pressured that brokers who have been open and sincere about properties in adverts had little to worry.
Smith mentioned: “That is about deceptive omissions. It’s a tidying-up train to strengthen client safety rules – the DMCC Act covers a variety of industries.
“You’re required to supply data that’s fairly inside your information.
“The foundations nonetheless are what they’ve at all times been – not every bit 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 sincere in all advertising supplies.
Tsuman mentioned: “Ask cheap 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 permit brokers to reveal sufficient data to accommodate the DMCC Act, added “ensure that if you already know 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 give attention to its 4 Ps – proportionality, predictability, course of and tempo – in relation to enforcement in 2025.
“This implies they are going to purpose to resolve points early and be sure that any penalties are proportionate. Nonetheless, brokers should not solely take 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 will likely be key for brokers.”
