Big changes are happening with Propertymark’s Property Information Questionnaires (PIQs). In March 2024, the foremost membership body for UK property professionals announced that these PIQ forms had been modified to comply with changes to the National Trading Standards’ Material Information guidance.
So we can support landlords, letting agents and conveyancers, this blog will provide context on the background of property information forms and explain the recent updates to Propertymark’s PIQ. We will then look at the implications for agents, conveyancers and other affected property professionals working within the UK’s residential sector.
Introduction to Propertymark and the Property Information Questionnaire (PIQ)
Propertymark has provided advice, training and guidance to its approximately 18,000 members who are all property professionals. This includes agents involved in lettings or the buying and selling of homes. It was formed in February 2017, when a handful of associations united to raise industry standards, including ARLA, ICBA, NAEA and NAVA.
Expecting its members to act with integrity at all times, Propertymark also has a regulatory role and can sanction property professionals who fail to adhere to their code. Their core aim is setting the standards for excellence, which they achieve through offering Continuing Professional Development (CPD) and training, plus desirable property-related qualifications.
With such high standards to meet, we were delighted that Inventory Base joined Propertymark’s Supplier platform in May 2022 and regularly exhibits at Propertymark events and conferences across the UK, as well as contributing vital information through webinars and articles.
The PIQ form in detail
At the time of writing, the lettings version of the PIQ form has two main sections that must be completed. The first stage is the ‘Disclosure of Material Fact’, which covers some useful sub-sections ranging from utilities/services, parking, fire and building safety and environmental issues alongside the property’s Energy Performance Certificate (EPC).
The second half of the property information questionnaire is around ‘Additional Information’, such as changes to the property, the length of ownership, specialist issues, notices that affect the property and its furnished state, among other relevant details. Those completing the form must then sign a declaration.
By doing so, they confirm they have completed the form to the best of thei knowledge. I understand that if I have intentionally misled or omitted any information. This is a reminder that property professionals must advise and work with sellers/landlords to complete these forms honestly and accurately.
However, the PIQ form is not exhaustive according to Propertymark, which states “you could face both an unlimited fine and/or imprisonment of up to two years” if you do not provide details that would otherwise have discouraged or prevented a property-related decision or transaction. Their guidance also makes it clear that this liability can extend to estate and letting agents too.
Finally, the details listed in the PIQ must only cover the time in which a landlord or seller has owned the property. All other material information that they know of from before they bought the property should be included in the ‘additional information section’.
Brief Background of the PIQ
A proposal by the then Minister for Housing, Margaret Beckett, in December 2008 suggested introducing a Property Information Questionnaire (PIQ) within every Home Information Pack (HIP). They were created “to be easy for sellers to complete without professional help” whilst offering buyers “useful information about a property” (The House Shop Blog) before it comes onto the market in England and Wales.
Becoming law on 6th April 2009, the PIQ form has outlived HIPs which were suspended in May 2010. It should be noted that Scotland’s housing market still relies heavily on PIQs. PIQs replaced similar Home Use Forms (HUFs) which few sellers had completed in their HIP as this was not a legally required document when selling a property. They had, however, been welcomed by those who wanted to sell their property without hiring the services of an estate agent.
Overview of the recent updates to the PIQ
Responding to new guidance from the National Trading Standards Estate and Lettings Agency Team’s (NTSELAT), Propertymark reformed its PIQ form earlier this year. This update concerns the topic of material information and aims to clarify its working definition. We previously looked at the background and updates of Trading Standards Material Information in October 2023.
Our article explored the National Trading Standards’ updates regarding parts A, B and C of material information and how “all property listings [are] to include information that ‘regardless of outcome, is always considered material for all properties regardless of location’”. It also explored the advantages and disadvantages of implementing these three stages for property professionals.
These material information changes spurred on the new changes of Propertymark’s PIQ form, a key component of its Sales Protocol Toolkit that strives to help estate/letting agents and consumers. The benefits include faster transactions, compliance with Consumer Protection Regulations and lower fall-through rates, according to Today's Conveyancer. Presenting accurate information from the start of a property’s marketing journey, equips renters and buyers with information that may otherwise have led to a chain breaking down months later.
Separate versions of this property information form exist to advise letting agents and landlords, as well as estate agents and sellers whilst letting or selling a property respectively.
Propertymark’s CEO Nathan Emerson praised the updated PIQ form by saying “Propertymark’s updated Property Information Questionnaire documents substantially enhance the previous versions of our PIQs by including Parts B and C of the Material Information guidance from National Trading Standards.
Our PIQs have undergone some extensive reworking, not only including the updated Material Information guidance, but being restructured in a way that we believe is more useful for our members”. It helps to ensure the trio of benefits noted above are experienced.”
Examination of the Changes and their Implications for:
As the main membership body for property sector professionals in the UK, Propertymark’s decision to update its Property Information Questionnaire (PIQ) is going to bring about significant change.
Letting agents
Helping to preserve their reputation and improve customer relationships, letting agents need to be aware of the changes surrounding the new Propertymark PIQ form. They must update their industry knowledge and convey these new requirements when advising landlords. All agents must continue to meet Consumer Protection advice and advocate transparency, clarity and non-ambiguity when compiling a Material Information Pack.
As the National Trading Standards’ ‘Guidance for Letting Agents’ document reminds readers, “All residential property listings should include material information, including those on property portals, property agent websites, third party websites, and printed material”. Letting agents now need to proactively request material information to create the property particulars and verify this with identity checks, ensuring that the landlord has ownership.
Should any information change, there’s an obligation for letting agents to update all formats of their property details immediately. The new PIQ form takes priority over agents’ own questionnaire forms and current documentation should be reviewed to ensure that material information is being obtained before the property is listed.
Top-notch communication with tenants throughout the entire process is vital, with the National Trading Standards document recommending letting agents maintain an accurate record of all interactions with consumers.
Conveyancers
Whilst the announcement was made only a few weeks ago, Estate Agent Today reports that ex-MEP and law firm director Andrew Kerr has since argued that these revised PIQ forms extend beyond The Property Ombudsman’s Code of Practice.
Kerr has claimed that “it enters agents into areas for which ‘they are not experienced, qualified or trained’ by asking for information that would be covered and clarified by conveyancers”.
This echoes potential concerns that agents are being asked to complete a conveyancing-like role, with severe potential consequences should they make an error. Likewise, it could be argued that conveyancers are having part of their remit removed by the new PIQ forms. Yet, they still provide a much in-demand service and the implications of the new PIQ are yet to be seen.
The importance of staying updated with PIQ changes
With a significant financial transaction at stake, every PIQ must be completed with sufficient information under consumer protection law.
The legal requirement to adhere to the Consumer Protection from Unfair Trading Act Regulations 2008 or face potential prison time and unlimited fines, means that property professionals, landlords and sellers need to stay updated with PIQ changes.
Given the financial and legal nature of letting or selling a home in 2024, these updates to PIQ forms, brought about by new material information changes, should be followed to ensure legal compliance and peace of mind.
Those in the residential property sector will need to adapt to said changes and keep an eye on developments, many of which will feature on the Inventory Base blog as they unfold.