Estate agents better liked, no reform needed -OFT

However, the OFT did recommend that more regulation was needed governing fees received by agents for referring customers to companies providing extra services such as mortgage advice and surveys.

"The OFT believes this could cause an estate agent to favour one buyer over another, to the seller's disadvantage," it said.

Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA) which has around 10,000 members, said the OFT had "categorically failed to see that better regulation" of the market was required.

"Buying a home is often the largest single transaction of a person's life and it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed," he said.

"The NAEA would like to see a greater level of regulation to ensure that professional, qualified estate agents are not confused with agents that, all too often, fail to meet the basic professional standards we would expect from our members."

(Editing by Steve Addison)