MORE competition between estate agents and higher standards of customer service were called for last night by the Office of Fair Trading (OFT).

The watchdog said that while the market was not uncompetitive, competition on price was limited and there was also a high level of consumer dissatisfaction.

It said more efficient enforcement of legislation was needed to protect consumers from rogue estate agents and drive those who were unfit to practice out of the market.

OFT chairman John Vickers said: "There is widespread public dissatisfaction about the market for estate agency services.

"Necessary changes include sharper price competition, more effective regulation and higher industry standards."

In a highly-critical report, the OFT said a quarter of people who had recently sold a house had not been satisfied with the service they received, complaining of poor value for money, delays in the sale and inadequate communication.

It said the study also found some serious complaints, including the failure by agents to pass on offers or to declare a personal interest, and suggestions to buyers that they would be more successful when trying to buy a property if they used the financial services offered by the estate agent.

The report also said there was widespread use of fixed pricing points by estate agents, with the majority charging fees set at quarter point increments of between one and two per cent of a property's sale price.

The group urged consumers to shop around, get quotes from more than one estate agent, and to negotiate on fees.

It said agents should also be required to quote fees in both percentage and cash terms.