CEILA Gets its Claws Out Early

It’s not been in existence for all that long – actually just one week – but already CIELA is making waves with one of the UK biggest online property agents.
The Charter for Independent Estate and Letting Agents – which currently has 12 regional officers and doesn’t launch officially until October this year – is demanding that Purplebricks change the wording in its current TV adverting campaign because they say it is “misleading to consumers.”
In a lengthy letter addressed to Purplebricks management at their West Midlands head office, CEILA demanded the hybrid agency stop comparing their fee structure with traditional High Street estate agents. Purplebricks does this in order to point out to potential vendors the financial benefits of using them over traditional agencies.
Purplebricks to launch in the US
Meanwhile Purplebricks, which claimed to have 4000 properties marketing on its site at one point last year, spends more on TV advertising than any other estate agency – whether online or traditional. In fact, so successful is their strategy in the UK and Australian, they say, that they intend to launch a similar American operation later this year.
The Purplebricks business model involves online marketing with local representation where agents meet vendors in person at their own home, undertake a valuation and assist the home owner with the sale. The TV adverts say they offer a “simple fixed fee” for selling a home rather than “a complicated fee structure.”
CEILA – which is an umbrella group for independent estate agents run by the CEO of the software company Easymatch – argues that the Purplebricks adverts go against current consumer protection legislation – although they admitted there was nothing factually inaccurate in the adverts.
CEILA then went on to threaten the three-year-old Purplebricks by insisting it would report them to the Advertising Standards Authority for scrutiny unless “reasonable steps” were taken in order to address the issue.
For their part Purplebricks reported that they did not intend to reply to the letter.
Four estate agents hauled up by CMA
Earlier this month four estate agents in Somerset were fined a total of £370,000 by the Competition and Markets Authority (CMA) for price fixing. A fifth escaped a fine by being the first to confess to investigators about the practice.
The announcement followed a year-long investigation by the Authority in the small holiday town of Burnham-on-Sea. It found that all four had committed “gross misconduct” by agreeing to a minimum commission rate of 1.5 per cent per residential property sale.
They were fined as follows: Greenslade Taylor Hunt (£186,054), Gary Berryman Estate Agents (£97,807), West Coast Property Services (£58,273) and Abbott & Frost (£30,099).
This was the second case of price fixing to have been investigated by the CMA. They have already recouped more than £1 million in fines from estate agents because of the practice.
Its senior director Stephen Blake said it would continue to take action in the event estate agents are found to have broken the law.”
Find out what’s happening in the UK property market by tuning in to our blog at www.avrillo.co.uk and checking out our Twitter page.

Blog by Avrillo.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

small house bird box
Breaking News

UK First Time Buyers better off than many other global nations

Is it really that bad being a first-time buyer? UK better off than many other global nations when it comes to affordability The latest market analysis from Yopa, the full-service estate agents, reveals that first-time buyers (FTBs) in the UK may be paying 63% more to get a foot on the property ladder than they…
Read More
new build homes colchester essex
Breaking News

Building Safety Regulator Reform

The Government has announced reforms to the Building Safety Regulator, including leadership, process and investment. The changes are hoped to deliver 1.5 million homes. The reforms pave the way for creation of a single construction safety regulator, as recommended by the Grenfell Tower enquiry. David Smith, property litigation partner at London law firm Spector Constant…
Read More
Breaking News

New anti-money laundering rules now in effect: what landlords need to know

New anti-money laundering (AML) rules came into effect this month, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged. Here, Steve Bond, managing director of residential lettings for Beresfords, explains what…
Read More
Breaking News

What landlords need to know about the upcoming Renters Rights Bill

The government’s long-awaited Renters Rights Bill is one of the most significant overhauls of the private rental sector in decades. While it has not yet received royal assent, the legislation is expected to come into effect late this year, or early in 2026. With the bill moving closer to becoming law, Steven Bond, managing director…
Read More
Breaking News

Mortgage approvals bounce back in May

The latest figures show that: – Mortgage approvals on house purchases for May sat at 63,032 up 3.9% from 60,656 in April. The monthly increase seen in May marks the end of four months of previous decline, with approval levels having fallen each month since January of this year. Approvals are also 2.5% higher than…
Read More
Breaking News

Money and Credit – May 2025

Key points: Net borrowing of mortgage debt by individuals increased by £2.8 billion to £2.1 billion in May, following a large decrease in net borrowing of £13.8 billion to -£0.8 billion in April. Net mortgage approvals for house purchases increased by 2,400 to 63,000 in May. Approvals for remortgaging also increased by 6,200 to 41,500…
Read More