The study will cover the whole of the UK, while recognising the significant differences in how the market works in Scotland.
Heather Clayton, Senior Director of Infrastructure, said: "With the economic downturn, we need to ensure that consumers receive a good service when buying or selling a home, from a market that is competitive, innovative and well-functioning.
"We have had constructive discussions on the scope of this study with interested parties from across central and devolved Government, consumer groups and the industry.
"This means we are starting the study with a clear understanding of the key issues."
The OFT intends to complete the study before the end of 2009.
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