The high street agents, who are former employers of the directors of Hatched.co.uk, complained about their website which stated that they provided 'a complete estate agency service'. Country Properties claimed that this was misleading because Hatched.co.uk covered the whole of England and Wales and was therefore not able to offer a complete service. However, after a lengthy investigation, the ASA decided that the complaint was without foundation.
Adam Day, Director of Hatched.co.uk. said:
"We have said all along that we can offer all of the same services as a high street agent. We just advise against all the extras like newspaper adverts, because they don't work. All you really need nowadays is to get on the big property portals, which is exactly what we do."
"Those that sell through an old fashioned high street agent are basically paying for agents' swanky offices and company cars - none of which are necessary to find a buyer for someone's home."
The ruling, which could have far reaching consequences for the UK estate agency industry, is seen by many as a turning point for online estate agents.
Day continued:
"It's simple; we are the future of estate agents in the UK. We offer a complete estate agency service, but only charge £540 to sell any house in any location across England and Wales. Traditional high street agents, like my old employer Country Properties, charge anything from a couple of thousand pounds to tens of thousands of pounds, which is an absolute rip off in my view."
Since launching Hatched.co.uk in May 2006, we have been targeted by our former employers who think they can bully us into changing our marketing. The days of the high street agent are numbered. While we are on an upward curve, old fashioned outdated agents like Country Properties, are on a downward curve."
The complete ASA ruling can be found here
