Cowboys heading for the wild frontier as RICS tightens up professional standards

RICS is tightening up its professional requirements in a bid to oust cowboys from the property industry.

The professional organisation is implementing tougher standards for individuals and regulated firms working in the land, property, construction and infrastructure sectors.

The changes ban the controversial practice of dual agency – known colloquially as ‘double-dipping’. The new regulations come into effect from January 1, 2018.

The protocol states that: “Dual agency must not be undertaken under any circumstances. For the avoidance of doubt, RICS members working within non-RICS regulated firms are subject to the same criteria as regulated firms when undertaking dual agency in the UK under any circumstances.”

The regulations also cover multiple agency – where an agent has competing contractual relationships simultaneously with several buyers – and the provision of incremental advice, for example in planning, building surveying, valuation related to a purchase or disposal that is incremental to an existing instruction to advise the buyer/s or seller.

The new standard was developed as the result of an extensive consultation that saw industry professionals and regulatory experts offer their views and the new requirements address concerns around the dual agency practice, providing both greater confidence for investors and increased clarity for RICS professionals.

Following launch of the global statement and the UK-specific statement, RICS will consult on the requirement for further market-specific standards.

RICS said that already, some of the best-known commercial property firms, such as SEGRO, JLL, CBRE, and Land Securities had indicated their support for the new standards.

Stephen Hubbard, chairman of CBRE UK, said: “As a member of the RICS Working Group, I am pleased to endorse these new rules and guidance which are an important step forward for the property industry in inspiring trust amongst clients and the public in the way we do business.

Chris Ireland, JLL UK CEO, added: “JLL will always work in the best interests of our clients and integrity within the investment market is fundamental to the protection of all clients.  The RICS professional statement will reassure our clients and the public that we have effective procedures and controls in place and will stick to them.”

RICS said it was uniquely placed to provide world-class standards and regulating the profession in such a way would inspire the confidence of the public in the profession.

Click here to sign up to receive our new South West business news...
Close