Four national quick house sale companies have agreed to improve their business practices following an investigation by the Office of Fair Trading (OFT).
The OFT accused quick house sale companies of giving some customers a "bad deal" by offering misleading valuations, cutting offer prices at the last minute, and having unclear fees.
The market, which is worth between £500 million and £900 million a year, allows people to sell their home faster than they would on the open market, by accepting a discount of between 10% and 25%.
The four companies, Box MX, BTA Properties, Property Rescue and Gateway Homes UK, have promised to embed good practice and address wider concerns in the OFT's market study published earlier this year.
They agreed to ensure their marketing materials clearly, accurately and prominently set out key information and risks relating to the sales process.
They also agreed to conduct valuations in a fair and professional manner, and promptly share relevant information about the progress of the sale, including anything that might affect the final offer price or completion date.
The companies have promised not to reduce conditional or final offer prices without a valid reason.
The OFT study concluded that quick house sale companies can provide a beneficial service for people who require a fast sale of their home, but identified some business practices that may not comply with the law and fall short of OFT standards.
These included giving misleading initial valuations, late reductions of the offer price and operating unclear fee structures.
As a result, some home sellers said that they were not always able to make confident use of the service and that bad deals had cost them significant amounts of money.
Gaucho Rasmussen, OFT director, goods and consumer group, said: "We are pleased these companies have constructively worked with us and agreed to undertakings which will provide greater clarity and confidence to consumers considering a quick house sale.
"We expect others in the sector to take note of the information we have provided and review their own practices.
"Moving house can be very stressful and it is important consumers understand how a quick house sale differs from a more traditional type of sale and what this means for them in practice."
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