Four reasons why you should become NTS compliant (and no, it’s not just the obvious one)

Back in November 2023, the National Trading Standards Estate and Letting Agency Team (NTSELAT) published its long-awaited guidance on Parts B and C of material information in property listings, with Part A having been released a mere 18 months earlier. A lot has happened since then, however some estate agents are still none the wiser of what’s expected of them in 2024, or the importance of this updated guidance, and the risks of non-compliance.

During that time there’s been somewhat of a flurry in the market, with data providers, CRMs, portals and everyone in between scrambling to either get their houses in order or get their National Trading Standards (NTS) compliant solutions to market. Given the market activity, it may shock you to learn just how many agents out there either still aren’t compliant or are still unclear on how or what they should be doing.

So let’s take a moment to show you why you should care about NTS compliance.

Why should agents care about NTS compliance?

The aim of NTSELAT guidance is to encourage the disclosure of as much material information as possible at the point of sale, much more than was previously required. Effectively now asking agents to do a full legal pack when marketing a property. It represents the single biggest change in the process of property transactions for years. Previously, the onus was on any potential buyer to carry out environmental and local authority searches, however, under the new NTS guidance it will be homeowners who will have the responsibility. Meaning they’ll also have to engage with a conveyancer before their property is even listed.

NTS compliance has the potential to improve completion rates

1 in 3 property transactions fail to reach completion. The biggest cause is any number of issues thrown up by searches or survey reports being conducted before an offer has been accepted. Imagine the time and stress that could be removed, simply by all the necessary material information being provided upfront, at the beginning of any transaction. We’ll see fewer fall throughs, with buyers less likely to pull out a few months in if they have all the essential information before they even see the property.

NTS compliance has the potential to reduce transaction times

It is currently taking over 7 months, on average, from a seller coming to market to completing their home move, according to Rightmove’s House Price Index report. These NTS compliance changes have the potential to bring this timeframe down, an improvement to the process which would be warmly welcomed. With part of the conveyancing process taking place before a property comes to market, we’ll begin to see faster transaction times with property sales able to exchange far quicker. A shorter conveyancing period and a decreased risk of fall through means more (consumer) confidence in the process, and more money coming into estate agency businesses.

Make NTS compliance a USP for your business

Ensuring your estate agency is NTS compliant has the potential to really set you apart from the competition. If you’re making the effort to provide the necessary upfront information on the homes you list, and can boast improved property transaction completions as a result, that will stand you in good stead for any new business coming your way. Afterall, your clients are precious to you, and anything that makes the buyers and sellers lives better should be welcomed with open arms.

Avoid a fine by being NTS compliant

Finally, it really goes without saying that the NTS guidance helps agents with their legal responsibilities under The Consumer Protection from Unfair Trading Regulations 2008 (CPRs). It’s a criminal offence to breach the CPRs and can lead to prosecution, with penalties potentially including an unlimited fine and up to two years' imprisonment.

Get NTS compliant with Coadjute

While there has been some discontent about the updated NTS guidance, as changes to the way we’re used to working can often bring, they have come from a place hoping for genuine improvement for everyone involved and tackling the underlying inefficiencies in the market.

At Coadjute, we understand that it’s never been more important for agents to have quick and easy access to essential property information. We built our Digital Property Pack with you in mind, with instant access to a broad set of material information at the click of a button, all from trusted sources, that comprehensively covers all the necessary property information from parts A, B and C of Material Information.

Want to get NTS compliant today? Find out more here.