DMCC Act explained: What UK property professionals need to know

TLDR: Key takeaways

• The DMCC Act significantly strengthens consumer protection enforcement in the UK property sector
• Estate and letting agents face higher compliance risk and faster regulatory intervention
• Stopover tenants increase disclosure complexity due to short term and non-standard arrangements
• Withdrawal of material information guidance places greater reliance on professional judgement
• Clear processes, documentation and technology are essential for defensible compliance

Table of contents

• What is the DMCC Act?
• Key changes agents must understand
• Why the withdrawal of material information guidance matters
• What property professionals are saying
• Practical implications for estate and letting agents
• How to start preparing for compliance
• How technology can help agents stay compliant
• FAQs

The introduction of the DMCC Act marks a significant shift in how consumer protection is enforced across the UK property sector. While the legislation applies broadly to consumer-facing industries, its implications for estate and letting agents are particularly important due to the complexity, pace and emotional weight of housing decisions.

For operational teams, the DMCC Act changes how compliance risk must be managed on a day-to-day basis. It raises expectations around transparency, consistency and evidence, while reducing reliance on prescriptive guidance. This shift is especially relevant for stopover tenants, where short term arrangements, compressed timelines and non-standard terms increase the risk of misunderstanding.

Rather than creating entirely new obligations, the DMCC Act strengthens how existing consumer protection principles are enforced. Regulators can act faster and impose more serious consequences when harm occurs. As a result, practices that were previously tolerated or inconsistently applied may now attract scrutiny.

For property professionals, understanding how the DMCC Act affects everyday workflows is no longer optional. Compliance has become a core operational responsibility that directly affects risk, reputation and customer trust.

In this blog post, we break down what the DMCC Act means in practical terms for estate and letting agents, with a particular focus on stopover tenants. We explain how the legislation changes enforcement, what key operational risks agents need to understand and why the withdrawal of material information guidance matters in day-to-day decision making. We also explore how property professionals are responding to the changes, what agencies can do now to prepare for compliance and how the right processes and technology can help embed transparency and consistency across the customer journey.

What is the DMCC Act?

The DMCC Act, formally known as the Digital Markets, Competition and Consumers Act, represents one of the most significant updates to UK consumer protection and competition law in recent years. Its primary aim is to modernise enforcement and ensure consumers are treated fairly in markets that have become more complex, faster moving and increasingly digital.

For estate and letting agents, the relevance of the DMCC Act is clear. Renting or buying a property is recognised as a high impact consumer decision, often involving long term financial commitment and personal security. As a result, property professionals sit firmly within scope of the legislation.

One of the defining features of the DMCC Act is how enforcement works in practice. The Competition and Markets Authority is now able to take direct action against businesses that breach consumer protection law. This includes issuing fines without relying on lengthy court processes, significantly reducing the time between harm being identified and enforcement taking place.

The Act also broadens how consumer harm is defined. Harm is no longer limited to direct financial loss. Confusion, lack of transparency, restricted choice or being locked into unsuitable arrangements can all be considered detrimental outcomes. This is particularly relevant in property transactions, where consumers may make decisions under time pressure or limited availability.

Importantly, the DMCC Act applies across residential sales, lettings and property management. It does not distinguish between long-term tenancies and shorter arrangements such as stopover or short stay lettings. Agents managing stopover tenants must therefore apply the same consumer protection principles, even where agreements are brief or operationally streamlined.

From an operational perspective, the DMCC Act signals a shift away from checklist-based compliance. The focus is now on outcomes. Regulators will look at whether consumers were genuinely able to make informed decisions based on clear, timely and accurate information. Agencies must be able to demonstrate that fairness was embedded throughout the customer journey, not applied selectively.

Key changes agents must understand

The most widely discussed change introduced by the DMCC Act is the increase in enforcement power. Regulators can impose fines of up to ten percent of global turnover for serious breaches of consumer law. For many agencies, this represents a level of financial exposure that did not exist before.

The Act also allows regulators to issue enforcement directions without court involvement. This means businesses may be required to change practices immediately once consumer harm is identified. There is far less opportunity to delay action while seeking clarification or legal advice.

Another critical change relates to misleading actions and omissions. Under the DMCC Act, failing to provide information that a consumer reasonably needs can trigger enforcement. Intent is less important than impact. If a consumer was misled or disadvantaged, action may follow even where there was no deliberate wrongdoing.

The legislation also places greater emphasis on evidence. Agencies must be able to show how compliance decisions were made, how information was assessed and how disclosures were applied consistently. Informal explanations or reliance on experience alone are no longer sufficient protection.

Systemic issues now carry significantly greater risk than isolated mistakes. If regulators identify patterns of behaviour across listings, teams or branches, enforcement is more likely. This makes standardisation and oversight essential.

Stopover tenants add complexity in this area. These arrangements often involve unique terms, bundled services or restrictions that differ from standard lettings. These differences must be communicated clearly and consistently, even when transactions move quickly.

Overall, the DMCC Act requires agencies to move from reactive compliance to proactive risk management. Understanding where decisions are made, how disclosures are handled and how consistency is maintained is now fundamental to operating safely.

Why the withdrawal of material information guidance matters

The withdrawal of formal material information guidance has created uncertainty across the property sector. Many agents previously relied on detailed regulatory lists to determine what information needed to be disclosed. With that guidance removed, professional judgement now plays a much larger role.

Crucially, the obligation to disclose material information has not disappeared. Consumer protection law still requires agents to provide information that could influence a consumer’s decision. What has changed is how materiality is assessed in each specific context.

Under the DMCC Act, regulators will assess disclosure decisions retrospectively. They will consider whether a reasonable consumer would have been affected by missing or unclear information. This makes upfront judgement and documentation increasingly important.

Stopover tenants present particular challenges. These arrangements may include limits on duration, renewal rights, access to services or permitted use of the property. Such details may not be obvious to consumers, especially when stopover accommodation appears like traditional lettings.

Without clear external guidance, internal alignment becomes critical. Agencies must define how material information is identified, documented and communicated across teams. Inconsistent approaches increase both consumer confusion and enforcement risk.

Written disclosure also becomes more important. Verbal explanations may not provide sufficient evidence if decisions are later challenged. Clear written communication demonstrates that information was provided in good time and in a usable format.

From a compliance perspective, the withdrawal of guidance places greater responsibility on agencies. Those with clear processes, training and documentation will be far better positioned to defend their decisions if challenged under the DMCC Act.

What property professionals are saying

Reaction to the DMCC Act across the property sector has been mixed. Many professionals welcome the renewed focus on transparency and consumer trust, but there is clear concern about operational impact and regulatory ambiguity.

Smaller agencies in particular worry about unintentionally breaching rules due to unclear expectations. Without prescriptive guidance, judgement calls feel riskier, especially when enforcement powers are stronger.

There is also concern about uneven enforcement across the sector. Larger organisations often have dedicated compliance teams and legal resources. Independent agencies may feel more exposed, even when acting in good faith.

At the same time, there is growing acceptance that the direction of travel is unavoidable. Consumer expectations around clarity, fairness and accountability have increased, and regulation is responding accordingly.

Some agencies report positive outcomes from standardising disclosures and centralising decision making. Clearer processes reduce internal debate and improve customer conversations.

Overall, sentiment suggests that while the DMCC Act raises the bar, it also rewards agencies that invest in professionalism, consistency and trust.

Practical implications for estate and letting agents

In practical terms, the DMCC Act requires agents to review how information flows through their business. Listings, enquiries, viewings and agreements must all support informed consumer decisions.

Stopover tenancies should be reviewed carefully. Marketing materials must clearly explain duration limits, restrictions and included services. Ambiguity increases the risk of misunderstanding.

Consistency across communication channels is essential. Property portals, emails and tenancy documentation should align. Conflicting information undermines trust and increases compliance exposure.

Agencies should also review how uncertainty is handled. Staff must know when to escalate questions or seek guidance. Assumptions are no longer safe.

Record keeping should be treated as a compliance safeguard rather than an administrative burden. Clear audit trails demonstrate reasonable professional behaviour and support accountability.

Using modern estate agent software can help centralise disclosures, documentation and workflows. This reduces reliance on individual judgement and improves consistency across teams.

How to start preparing for compliance

Preparation for the DMCC Act should begin with a structured review of existing processes. Agencies should assess how information is collected, stored and communicated throughout the customer journey.

Training is essential to ensure teams understand what constitutes material information and how professional judgement should be applied in practice, as shared understanding reduces inconsistency and risk. Stopover tenancy workflows should be reviewed separately, as these arrangements often fall outside standard templates and processes, increasing the likelihood of oversight. Internal policies should also clearly explain how disclosure decisions are made and recorded, supporting defensibility if those decisions are later challenged.

Many agencies benefit from appointing internal compliance champions. These individuals help maintain consistency and provide operational guidance. Preparation should be ongoing rather than a one-off exercise. The DMCC Act represents a long-term shift in expectations.

How technology can help agents stay compliant

Technology plays a critical role in supporting compliance under the DMCC Act, particularly as manual processes struggle to keep pace with regulatory change and operational complexity. Centralised systems help ensure disclosures are applied consistently across listings and tenancies, while allowing updates to be implemented quickly and accurately. Digital audit trails make it easier to evidence decisions if they are questioned, and strong customer interaction management supports clear, consistent communication across the tenant journey, reducing misunderstandings and disputes.

Technology also provides valuable oversight, with data highlighting patterns of risk or inconsistency before issues escalate, helping compliance become part of everyday operations rather than a reactive task.

FAQs