Over four in five advisers feel it is now becoming standard practice at some estate agencies
The unlawful practice of conditional selling by estate agents is worsening, negatively impacting more customers, a survey conducted by brokerage Access Financial Services has found.
Conditional selling occurs when an estate agent tells a prospective buyer they must use the agent’s in-house broker for their offer to be considered on a property.
Nearly two thirds, or 63%, of Access mortgage advisers surveyed reported that their clients experienced conditional selling from November 2023 to May 2024. Of those, 100% said it caused their clients harm, such as stress, hassle, or confusion.
A third, or 33%, of advisers believe conditional selling has worsened in the past six months, and the same proportion think the problem has remained the same, while 30% are unsure, and 4% think it is improving.
Advisers described instances where customers were denied the opportunity to purchase a property because they refused to use the agent’s broker. One adviser mentioned a series of first-time buyers who felt pressured into using the agent’s in-house adviser. Another adviser’s client, worried about losing their desired home, felt annoyed about being forced to use a service they did not want.
A vast majority, or 83%, of mortgage advisers feel that conditional selling is almost standard practice at some estate agencies.
To help counter conditional selling, Access Financial Services has created two free letter templates for financial advisers and their clients: one to inform estate agents of the situation, and another to request support from the property ombudsman if needed.
“Something is broken in the property industry when this practice continues after 20 months of our campaigning against conditional selling, and developing tools and processes to protect advisers and their clients,” said Karl Wilkinson (pictured), chief executive of Access Financial Services. “A significant minority of estate agents are being allowed to continue to negatively impact our industry. This has to stop.
“Conditional selling is morally wrong and a clear breach of Consumer Duty, as well as The Property Ombudsman’s Code of Practice and the Estate Agents Act 1979. What other industry puts up with this kind of harmful behaviour? We can do better.”
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