The NSW Government has appointed the state’s first Property Services Commissioner in a move that it says “will herald a new era of trust and engagement between the real estate industry, its regulator and consumers in NSW.”
But John Minns’ first opportunity to make a difference will be to heal a rift in the Property Services Expert Panel, set up to advise him, after the Real Estate Institute of NSW walked away from the project before it had even met for the first time.
In a blistering attack on the concept of the panel when it was announced in June, Real Estate Institute of NSW chief executive Tim McKibbin said it was a “ruse” offering little consumer protection, involving “pointless engagement” and would have “no capacity to deliver meaningful change” as long as the Department of Fair Trading remained the regulator.
“We are serious about reform and can therefore not assist the minister to perpetuate the ruse of consumer protection which he falsely claims the panel (and commissioner) delivers,” he said. “The panel … is the epitome of pointless engagement, as ever, Fair Trading sets the agenda and as ever, nothing changes.”
However, following the arrival of the new commissioner, he is considerably more conciliatory.
“We welcome the appointment of Mr Minns and we believe he has has the expertise to be able to do the job, and do it well, and we’ll provide him with enthusiastic support,” Mr McKibbin told Flat Chat.
“Our reservations however are to do with the culture of FT which is to not engage with industry cooperatively and constructively. We continue to hold that concern. In relation to the expert panel, we would look favourably on an invitation to join the experts on the panel.”
Kevin Anderson, Minister for Better Regulation and Innovation (the Fair Trading Mothership), has said the new commissioner “will sit independently of Fair Trading”, while reporting directly to him.
In a press release last week Minister for Better Regulation Mr Anderson said Commissioner Minns will be a “fundamental part of ensuring a strong, vibrant property sector, responsive to the needs of property services professionals” and which will have the highest standards for the benefit of consumers.
“The real estate industry contributes $100 billion and over 37,000 jobs to the NSW economy,” Mr Anderson said. “That is why it is critical to have the right processes in place to allow the NSW Government to support this thriving industry whilst maintaining the highest protections for consumers.”
Commissioner Minns said he is excited by the opportunity to work with the Property Services Expert Panel to bolster the real estate industry.
“At a time of unprecedented change and rapid digital transformation, I am looking forward to working with leaders across the industry to deliver improved consumer outcomes, a vibrant and sustainable NSW property sector and continued innovation,” Mr Minns said.
The newly anointed Property Services Commissioner will “reflect the successful model taken by Building Commissioner David Chandler to reform the building and construction sector,” says a press release from the department of Better Regulation and Innovation.
However, it did not specify where those “improved outcomes” would be or where it was thought the property services industry needed to lift its game.
Mr Minns will work with the Property Services Expert Panel and the NSW Government to drive positive reform to support consumers, and streamline services delivered by the regulator to agents and property service professionals.
“John brings more than 25 years’ experience as a real estate business owner and agent. Most recently he was Managing Director of Canberra-based Independent Property Group and is a previous Director of Academy of Real Estate Services where he worked to improve professional development and training opportunities,” Mr Anderson said.
“The NSW Government is always looking for new ways to update and modernise property services regulation and we are excited to have someone with such passion for the industry lead us through this process.”
Critics of the plan point out that neither tenants nor property owners – specifically apartment residents – have been invited to participate, denying the actual consumers of property services a seat at the table.
Chris Duggan, President of Strata Managers’ peak body Strata Community Association, will chair the panel which will also include representatives from real estate companies, building and strata managers, business brokers, the short-term holiday rental industry, the livestock and property agency, Australian Wool and Pastoral Agency, and the private landlords’ Property Owners Association.
Mr Duggan, said he was delighted with the appointment of Commissioner Minns. “This is an important step forward for our real estate industry and members of the Panel look forward to working with Commissioner Minns in the weeks and months ahead,” he said.
