CMA fines estate agent 'cartel' over price fixing scandal

In 2017, the Competition and Market's Authority (CMA) found that a group of estate agents in Somerset had agreed to fix minimum commission rates for the sale of residential properties, meaning that local homeowners were blocked from getting the best possible deal when selling their properties.

The Burnham-on-Sea cartel, formed in early 2014 after several local estate agents met to "have a chat about fees," took steps to ensure the 1.5% minimum fee agreement was held to by contacting one another when any issue arose.

Much to the chagrin of its members, the cartel established by Abbot and Frost, Gary Berryman Estate Agents, Greenslade Taylor Hunt, West Coast Property Services and Warne Investments disbanded in 2015 after a separate CMA inquiry into the sector saw Three Counties Estate Agent fined £735,000.

Five of the estate agents involved were fined a total of £370,084, with, Annagram Estate Agents, the sixth agent involved being allowed to avoid fines as a result of its cooperation with the investigation.

Stephen Blake, senior director of cartel enforcement for CMA said, "We are committed to tackling cartels regardless of the size of the businesses involved. We have taken action against estate agents before, and remain committed to tackling competition law issues in the sector."