An estate agency in Bridlington and its two directors have been banned from operating in the industry by the Office of Fair Trading (OFT).

Lucy Lloyd and Carlo Ykhlef, of Quay Homes Estate Agency Limited, have been issued with a prohibition order preventing them working as agents after an adjudicator ruled that Ms Lloyd has not made clients aware that she owned a property the agency was selling.

In a statement, the OFT announced Mr Ykhlef had also received a ban "as they are jointly liable for Ms Lloyd''s breaches under the Estate Agents Act 1979".

Ray Hall, OFT director of markets and projects, said: "Estate agents must be candid and open with their clients if they stand to profit from the sale of a property they are marketing. It is essential for consumers to know if the agent has a potential conflict of interest."

The government has plans to crack down further on agents who do not comply with all their responsibilities, with the Department for Business, Enterprise and Regulatory Reform currently preparing for the April 2008 introduction of the Consumers, Estate Agents and Redress Act.