A survey by Access Financial Services has revealed that the unlawful practice of conditional selling by estate agents is worsening and causing significant harm to customers.
Conditional selling occurs when an estate agent tells a prospective buyer that they must use the agent’s in-house broker for their offer to be considered on a property.
Nearly two-thirds (63%) of Access Financial Services mortgage advisers reported that their clients experienced conditional selling between November 2023 and May 2024. All of these advisers stated that this practice caused their clients stress, hassle, or confusion.
One-third (33%) of advisers believe that conditional selling has worsened over the past six months. Another 33% think the problem remains the same, while 30% are unsure, and only 4% feel it is improving. Alarmingly, more than 80% of mortgage advisers feel that conditional selling is almost standard practice at some estate agencies.
Karl Wilkinson, CEO of Access Financial Services, said: “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. A significant minority of estate agents are being allowed to continue to negatively impact our industry. This has to stop.”
He continued: “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.”
To combat conditional selling, Access Financial Services has created two free letter templates for financial advisers and their clients. One is addressed to estate agents to raise awareness of the issue, and if unsuccessful, the second letter requests support from the property ombudsman.
Advisers described various instances of conditional selling over the past six months. Some customers were denied the opportunity to purchase a property because they refused to use the agent’s broker.
First-time buyers felt pressured into using the agent’s in-house adviser. One client, worried about losing the house they wanted, was frustrated at being forced to use a service they did not want. Another client expressed confusion over being denied the fundamental right of free choice in buying their home.
