Tesco has suspended the private sales section of its property website and offered a full refund to customers.

The decision came after the Office of Fair Trading (OFT) told the retailer it was acting as an estate agent, so would need to abide by the relevant laws. The site was launched in July.

Customers got a ‘for sale’ sign and a listing on the website, and saved money as there was no estate agent’s fee. Soon after it was launched, a representative of the board of the Ombudsman for Estate Agents wrote to the Office of Fair Trading to ask if Tesco was effectively acting as an estate agent.

Tesco is not the only private property sales website which may come under scrutiny. In recent years, many specialist websites have sprung up which also offer to help you sell your home without going through an estate agent.

Tesco is now reviewing its business with a view to launch an online estate agency service.