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Consumers, Estate Agents and Redress Bill [HL]

The purpose of the Bill as regards redress schemes is to authorise the Secretary of State to make it compulsory for those carrying out estate agency work, as defined in Section 1 of the 1979 Act, in relation to residential property to join a redress scheme. However, as the Bill makes clear, before making an order the Secretary of State must first be satisfied that all persons who are to be subject to the duty to join a scheme will be eligible to join a suitable approved scheme. The intention is that industry itself will submit a scheme or schemes for approval. However, it is possible that no such scheme would be approved, in which case a scheme would be administered by or on behalf of the Secretary of State. In those circumstances, it would not be appropriate for the Secretary of State to be under an obligation to make an order from the outset.