Homebuyers are to benefit from added protection against rogue estate agents with the passing of new legislation.

The Consumer, Estate Agents and Redress Act, which has been given Royal Assent and will come into effect in 2008, will also help to protect the reputation of genuine agents from the actions of a dishonest minority.

Under the new legislation, it will be compulsory for all UK estate agents to belong to an independent ombudsman and also to keep written records of their dealings with buyers and sellers for six years.

In addition, powerful redress schemes will be introduced which will guarantee complaint resolution and can award compensation for consumers in the energy and postal services sector.

While the National Association of Estate Agents welcomed the initiative, its chief executive Peter Bolton King said: "As we have said before redress on its own is not enough. Initiatives need to be put in place to prevent bad practice from happening in the first instance.

"By requiring all agents to belong to an approved industry body with competency standards the government could very easily address this issue.

"The industry does in fact already have the structure in place for this to be achieved quickly and in a straightforward manner and we urge the government to consider this."