The concerns have arisen after reports in trade magazine The Grocer said the store chain is in talks with a website specialist concerning a move that could see Britons selling their homes through Tesco for a fee as low as £50.
Andy Frankish, managing director at Mortgage Talk, was apprehensive when asked what ramifications the move could have for brokers affiliated with estate agency franchises.
He said: “Speculation of attempted moves into the market have been around for a long time through various guises but when you hear a brand as massive as Tesco mentioned then the possible threat must be taken seriously.
“This is something we will have to keep an eye on and what market share it is looking to gain.”
“What we, the broker, have to focus on is the relationships we can offer through our independent service and trust that consumers will benefit from personal contact.
“People will still want to buy houses and financial services from people. It will be a challenge the industry will rise to,” he added.
Brian Murphy, lending manager at the Mortgage Advice Bureau (MAB), commented: “At the moment it poses more questions than answers and we will endeavour to find out more regarding this.
“It’s difficult to assess the mechanics but there is the potential for a big impact upon estate agency-related business. However, we firmly believe there will always be a market for the out-and-out broker.”
A spokesperson for Tesco refused to be drawn on the issue. He said: “We look at many things that we think customers might be interested in. They don’t necessarily all come to fruition.”
