It’s the storm that’s been brewing since 2022, which made landfall this April. No longer a regulatory ripple, Material Information is a headline compliance issue for housebuilders across the UK, says Show House’s editorial director, Rupert Bates.
The concept of Material Information isn’t new, and was first codified in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs), which placed a legal obligation on businesses to disclose any information that the average consumer needs to make an informed transactional decision.
While housebuilders may have historically viewed consumer regulations as something that only applied to estate agents, the sale of residential property – whether existing stock or new build – is a consumer transaction if the property is being sold to a private individual. The CPRs have always applied; what’s changed now is who is enforcing the law.
In 2022, the National Trading Standards Estate and Letting Agency Team (NTSELAT) introduced Part A of its sector-specific Material Information guidance, focusing on property tenure, price and council tax. This was followed by Parts B and C in late 2023, extending the scope to cover disclosure of construction materials, restrictive covenants and flood risk, as well as utilities providers, broadband coverage and more.
However, fundamental changes occurred this year with the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), which came into force on 6 April 2025 and significantly strengthens the enforcement of existing consumer protection legislation.
Significantly, it grants the Competition and Markets Authority (CMA) direct enforcement powers to investigate and fine businesses for breaches of consumer law, including failure to disclose Material Information, together with other bodies who can also enforce the law, including local Trading Standards and sectorial regulators. The Chartered Trading Standards Institute (CTSI) and National Trading Standards, of which NTSELAT is part of, provide guidance on the Act.
The CMA’s recently published guidance, CMA207, makes clear the concept of Material Information is retained from the CPRs and that certain information will always be considered material in the context of an ‘invitation to purchase’.
A CMA spokesperson confirmed to Show House: “All businesses need to ensure that consumers have the information they need to make informed decisions. The CMA is one of several bodies that provides guidance for businesses to support compliance with consumer law.”
“Our unfair commercial practices guidance has been developed to help businesses, including those in the property sector, understand their obligations under the new consumer protection regime.”
This regulatory tightening has put housebuilders squarely in scope. Any organisation marketing and selling residential property to consumers – whether directly or via agents – is now expected to comply.
What’s created an element of confusion in the last few weeks has been the withdrawal from NTSELAT’s website of the previously published Material Information guidance, including definitions of Parts A, B and C. Meaning that while new laws and a far tougher enforcer were brought into the frame in April, the framework for compliance has temporarily been removed.
However, Show House has been informed that the legal position is clear. In the absence of any updated guidance being issued by the CMA, the previous guidance issued by NTSELAT currently stands and would form the basis of a regulatory defence, should the need arise.
The CMA’s guidance on Unfair Commercial Practices (UCPs) issued in April also regulates types of commercial practice known as ‘invitations to purchase’ and that the omission of Material Information from an invitation to purchase is an unfair practice.
Examples of ‘invitations to purchase’ are included in the CMA’s guidance. However a listing on a website or portal, a social media post, a text message promotion, an advertisement (either in a digital or in print publication), a direct mail campaign or a brochure, all fall within scope.
For some in the sector, this may feel like an administrative burden, or worse still, a sales prevention exercise. However, there is a silver lining, which is that estate and letting agents who’ve been working with the Material Information framework since 2022, have to some extent been the ‘canary in the coal mine,’ yet have seen the commercial upside.
Initial scepticism has, by many, given way to recognition of its value; better informed buyers are better qualified buyers, meaning they are more likely to convert and transact with reduced enquiries, leading to shorter transaction times and a reduced number of aborted transactions.
In many respects, housebuilders have several advantages over the wider market. Unlike second-hand stock, where much of the Material Information must be sourced retrospectively – often buried in old deeds or missing documentation – new homes generally aren’t blighted with a defective title.
“I’ve worked with Material Information since it was first introduced to the estate agency sector in 2022, and I’ve seen first-hand how it improves the home buying process for all parties involved; buyers are better informed, fall-through rates reduce, and transactions progress faster,” says PropTech and marketing expert Louisa Fletcher.
“For housebuilders, while it’s a legal obligation, it’s also a significant commercial opportunity if handled correctly, and it isn’t the disruption to marketing or the hindrance to sales that it may appear to be at first glance. Material Information is also hugely beneficial to customer service processes and executed well, can enhance a brand’s consumer reputation.”
Breaching UCP provisions can be a criminal offence and the DMCC Act enables the CMA to issue fines of up to £300,000 or 10% of global turnover, whichever is the greater, without going to court.
There is currently no grace period or transitional phase. The law is live and the risks are very real. For those who have not yet engaged with this agenda, now is very much the time to do so.
