REA reports increase in complaints in 2024/25 challenging market conditions

In its 2025 Annual Report(external link) released today the Real Estate Authority (REA) reports a 35% increase in formal complaints about the conduct of licensed real estate professionals (licensees) in the year to 30 June 2025. However, only 9% of licensees subject to a complaint had findings of misconduct or unsatisfactory conduct against them.
REA processed the highest ever number of complaints, with many addressed through REA’s early resolution processes. In the financial year to 30 June 2025:

• 487 complaints were received by REA (361 in 2023/24)
• 467 complaints were determined by REA (283 in 2022/24), with 341 addressed through early resolution processes
• 145 decisions were issued by the independent Complaints Assessment Committees (113 in 2023/24)
• 43 decisions were issued by the Real Estate Agents Disciplinary Tribunal.

The top complaint themes related to customer service, skill and care, disclosure and misleading advertising. Poor communication was a common theme in complaints raised. However, REA reported that a large proportion of the complaints considered did not raise issues justifying strong regulatory intervention.

REA Registrar/Chief Executive Belinda Moffat says, “the complaint results indicate that most licensees are continuing to maintain high standards of professional conduct and REA is holding to account those who don’t.”

However, Ms Moffat noted that the increase in consumer dissatisfaction with the performance of real estate agency work needs to be a focus for the industry, and acknowledged that some cases raised complex and serious matters.

“Licensees are expected to maintain high standards and to have the skills to navigate challenging market conditions. Fairness, transparency, skill and care are critical expectations of the conduct regulatory system we oversee.”

REA’s Annual Report outlines that in the year to 30 June 2025, REA undertook a number of initiatives to support real estate licensees to meet high standards, and to provide information to support consumers to confidently engage in real estate transactions. Initiatives included:

• Issuing guidance for licensees on use of AI in real estate transactions
• Delivery of a high quality continuning professional development programme for licensees attracting 76% satisfaction rate
•  Launch of an Instagram account to promote REA’s consumer website Settled.govt.nz
• Release of real estate transation process guides in formats accessible to blind and low vision consumers
• Engagement with a range of real estate sector stakeholders in Wellington, Auckland, Christchurch and Tauranga throughout the year.

REA’s Annual Report illustrates that despite the challenging market and increase in complaints, public confidence in the real estate industry and in REA as regulator remains strong. REA’s 2025 research results found:

• 81% of the public have confidence the real estate industry is well regulated
• 91% of consumers have confidence that the real estate industry is professional
• 97% of consumers found information provided by REA useful.

Chief Executive/Registrar said the increase in complaints highlights the complexity of the real estate transaction process and the importance of consumers receiving high standards of service from the sector. The provision of quality information about the property is important to support good decision-making by parties to a transaction.

“Protecting consumers from harm is at the heart of our work. Our work this year to increase access to and awareness of our consumer website settled.govt.nz, and the wide range of consumer guides we develop for the diverse communities we serve has been particularly important. We are pleased to see how valued these resources are by New Zealanders.”

Despite the slow market, licensee numbers have remained stable with 15,692 active licenses as at 30 June 2025. This included:

• 12,300 salespeople
• 605 branch managers
• 1,930 individual agents
•  857 company agents.

“We were partcularly pleased to see the 18% increase in branch managers this year given the important role they play as supervisors of salespeople,” Ms Moffat said.

REA Board Chair Denese Bates KC says;

“The 2025 Annual Report(external link) demonstrates that REA is making meaningful progress towards our strategic goals to ensure a high performing and well-regulated real estate industry in which consumers can have confidence.”
ENDS

For more information contact Aaron Alexander, Communications and Engagement Manager, Real Estate Authority, on 027 237 7196 or via media@rea.govt.nz

About REA

The Real Estate Authority (REA) is the independent government agency that regulates the conduct of licensed real estate professionals in New Zealand. We license people and companies working in real estate, provide oversight of the code of conduct (external link)(external link), oversee the complaints and disciplinary process for poor conduct by licensees, provide education and guidance to licensees to assist them to meet their regulatory obligations, and provide information to consumers about the real estate transaction process. REA is governed by a Board. The Chair is Denese Bates KC. REA Chief Executive is Belinda Moffat.