Material Information Parts B & C: What should you know?

We know the recent introduction around Material Information Parts B & C can feel overwhelming. But we’re here to make sense of it. As your guides, we’re here to explain these rules for estate agents in simple terms, and what they mean for you going forward.

New regulations can sound like a hassle, but Parts B & C have been made mandatory to benefit everyone involved when it comes to property transactions.

Let’s walk through exactly what Material Information Parts B & C cover, how you can remain compliant, and all the advantages these new regulations will bring to you, your clients, and your business down the road.

Buying or renting a home is one of the biggest decisions most of us will make. The process can be overwhelming and confusing when key details are missing early on. 

Material information refers to any facts or details estate agents provide to help consumers make informed decisions. Let’s be real – the home search often starts online in places like Rightmove and Zoopla. But it’s easy to feel in the dark without all the relevant material details upfront. 

Nothing’s worse than falling in love with a property only to later uncover dealbreaker issues that could have been red flags from the start. Talk about heartache and money down the drain. 

That’s exactly why National Trading Standards introduced material information requirements in Parts A, B and C. To arm the consumer with way more useful details earlier to avoid disappointments and wasted time for everyone involved in the property transaction. 

The regulations will bring much-needed consistency across the industry and will save everyone cash and hassle in the long run. 

Part A came into effect in July 2022 and is all about providing clear details on the unavoidable costs of a property upfront. This allows consumers to understand the true cost of a home before getting too far along in the process.

Here’s all the important information that is required for Part A:

1. Tenure – freehold, leasehold, or commonhold

• For any leasehold properties: information on the ground rent, service charges and length of the lease must be included.

2. Council tax – bands to be included for England, Wales and Scotland (rates for Northern Ireland)

3. Price:

• Lettings properties to include the monthly rent and deposit payable
• Properties for sale to include the property price
• Shared ownership properties to include details of the % share being sold and rental cost for the remaining share

This information needs to be displayed anywhere that you advertise a property, whether it be window cards, your website, or social media.

Now let’s get into the first of the two more recent parts.

Part B came into effect on November 30^th 2023, and focuses on providing details about a property’s physical characteristics. The goal of Part B is to give the homebuyer all the maintenance and construction info they’ll need to make a solid decision.

Here’s a breakdown of what’s covered in Part B:

Physical characteristics of the property

• Property type – house, flat, room to let etc.
• The key materials used in the main construction of the property and other important areas

Number and type of rooms (this can be best highlighted on a floorplan)

• What the room type is (bedroom, bathroom, kitchen etc.)
• The measurements of those rooms

Utilities (and how they are supplied)

• Electrical supply
• Water supply
• Sewerage
• Heating
• Broadband – including type and an idea of speed
• Mobile signal/coverage – including any known issues or restrictions

Parking

• Whether the property has parking
• If any permits are required
• If there are any known restrictions/limitations

And finally, we have Part C.

Part C, which also came into effect on November 30^th 2023, focuses on disclosing issues that may or may not affect a particular property. The goal is, as always, to equip consumers with the details they need to make the best homebuying decision.

Part C covers:

1. Building safety

• Including unsafe cladding, asbestos, risk of collapse

2. Restrictions

• If the property or its land is in a conservation area
• Listed building status
• Tree preservation order

3. Rights and easements

• Public rights of way (such as public footpaths)
• Shared driveways

4. Flood risk

5. Coastal erosion risk

6. Planning permission - for the property itself and proposals for development

7. Accessibility adaptation - such as step-free access, wet rooms, and essential living accommodation on the entrance level

8. Coalfield or mining area

We understand that these new material information rules may feel like a headache at first. But stick with us – they’ll make your life easier in the long run.

First off, compliance is mandatory, so meeting the requirements keeps you safe within the guidelines and avoids any penalties. Getting systems in place helps you stay on track.

Beyond just avoiding hot water though, giving buyers key details upfront creates real opportunities for smoother transactions. Letting them see the full picture early means they can make faster, more confident decisions, that cuts down on nasty deal collapses at the last minute.

Plus, identifying issues ahead of listing and fixing them, makes sellers’ properties way more attractive as soon as they hit the market. It helps to proactively manage expectations whilst also minimising wasted time on unsuitable buyers. 

We know change can be hard. But once these practices become second nature, you’ll appreciate the benefits. More knowledgeable clients armed with facts make choices quicker and more decisively.

While agents are responsible for providing new upfront information, the goal is to create a smoother journey for buyers and sellers. With more transparency early on, buyers can make informed decisions faster and sellers can attract qualified buyers. Here’s a breakdown of the main benefits for buyers and sellers:

Let’s start with the perks for home sellers:

• Peace of mind knowing your listing checks all those compliance boxes
• Lower risk of deals falling through last minute since buyers see the full picture upfront
• Get ahead of issues early so you can address anything before listing – makes your home more market-ready and attractive
• Less wasted time on buyers who aren’t a match. Connect with the right buyers faster

And the advantages for buyers:

• Make smarter, quicker decisions with more property information to go on
• Skip unwanted surprises down the road and the costs they can bring
• Zero in on strong fits by skipping unsuitable viewings
• Uncover concerns early to minimise conveyancing headaches for a speedier completion

The key details for Parts A and B should be visible right within the property adverts. Since these apply to every home, agents should include them upfront to help consumers make informed decisions.

If an agent needs to provide any complex info for Part C, they may use a click-through link rather than overwhelm the advert. But this needs to be clear, it cannot be ambiguous or hidden.

Tt’s understandable if all the recent material information updates have your head spinning a bit. But here’s the way to see it – this is an exciting opportunity to bring more transparency and empowerment to real estate.

Yes, agents and sellers will need to adapt. But the end goal is streamlining the home buying journey by cluing buyers into key details much earlier. And a smoother process with fewer surprises is a win-win for all. 

We know that adjusting to changes is hard, but that’s only at the beginning. These regulations will take some getting used to, but they have so much potential to make the process smoother for all parties involved.