Auctioneers deny collusion to inflate property prices

THE governing body of auctioneers has denied any knowledge of its members sharing confidential information with mortgage brokers in order to inflate property prices.

This follows reports that the Financial Regulator is investigating the affairs of some mortgage brokers who are alleged to have broken the law by revealing their clients’ details to estate agents.

The move comes some 20 months after an RTÉ Prime Time programme exposed collusion between mortgage brokers and estate agents designed to artificially inflate the selling price of property.

In a statement last night, the Irish Auctioneers & Valuers Institute, which represents 2,000 auctioneers and estate agents, said it was not aware of breaches of the Data Protection Act or other legislation by its members in their dealings with mortgage brokers and intermediaries.

“Should brokers and agents have colluded to present false facts to buyers to maximise selling prices, the IAVI would condemn such actions,” it said, adding that it would take “appropriate” action against members found to have acted improperly.

Fine Gael’s housing spokesman, Terence Flanagan, said the Property Regulator must be given new powers immediately once the Dáil resumes.

“A farcical situation is now in place as mortgage brokers are being investigated by the Financial Regulator while estate agents get off scott-free,” he said. “Those found guilty of the practice must be brought to book.”

The bill to establish the National Property Services Regulatory Authority, which will go before the Oireachtas this autumn, will oblige estate agents to notify clients in writing that they act as mortgage intermediaries when they confirm client’s instructions to sell the property.

The bill will also prevent an estate agent from giving preferential treatment to a prospective buyer who is willing to place mortgage business through the selling agent.