New Consumer Law Replaces Guidance on Property Disclosures
New Consumer Law Replaces Guidance on Property Disclosures
As of 8 May 2025, the National Trading Standards’ Material Information guidance has been withdrawn following the enactment of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). This change marks a significant shift in the regulatory landscape for property professionals.
Understanding the Change
The DMCC Act supersedes the previous Consumer Protection from Unfair Trading Regulations 2008, under which the Material Information guidance was established. With this legislative update, the responsibility for enforcing consumer protection in property transactions has transitioned to the Competition and Markets Authority (CMA). The CMA now holds direct enforcement powers, including the ability to impose fines or take action without a court process, raising the stakes for non-compliance.
Implications for Landlords and Investors
While the specific guidance has been withdrawn, the obligation to provide ‘material information’ remains. Under the DMCC Act, failing to disclose key information that could influence a tenant’s or buyer’s decision is considered an unfair commercial practice. This includes omissions, misleading actions, or aggressive behaviours towards consumers.
For landlords and property investors, this means ensuring that all relevant information about a property is transparently communicated during the letting or selling process. This includes details such as property tenure, council tax bands, flood risks and any other factors that could affect a tenant or buyer’s decision-making.
Navigating the New Landscape
The withdrawal of the previous guidance has led to some uncertainty within the industry. However, the CMA has published general guidance on unfair commercial practices to assist businesses in understanding their obligations under the new law.
Industry bodies, including PropertyMark and The Property Ombudsman, are actively engaging with stakeholders to develop clear, enforceable standards that reflect the practical realities faced by property professionals.
Key Takeaways
- The Material Information guidance has been withdrawn as of 8 May 2025.
- The obligation to provide essential property information remains under the DMCC Act.
- Non-compliance can result in substantial penalties, including fines and potential legal action by the CMA.
- Landlords and investors should work closely with their letting agents to ensure all material information is accurately and transparently disclosed.
Staying informed and proactive in understanding these regulatory changes is crucial. By doing so, landlords and property investors can continue to operate confidently and compliantly within the evolving property market landscape. If you have any questions or need to share additional information with us, please call the Pace head office on 01702 445600.