Conditional selling – the estate agent loophole that’s hurting buyers – Harrison

This practice – where estate agents pressure buyers into using in-house mortgage advisers in order for their offers to be considered – is not just unfair, it’s unlawful. And it’s eroding buyer confidence at a time when transparency is more important than ever.

Although long-denounced by independent brokers, the programme’s allegations against Connells bring the issue back into sharp public focus.

Under the Estate Agents Act 1979, all offers must be presented to the seller, regardless of which broker the buyer uses. Yet we continue to see situations where this legal obligation is sidestepped in favour of commercial gain. It’s a breach of trust that has no place in modern home buying.

This scrutiny is not only welcome – it’s overdue. Buyers should always be treated fairly, and it’s telling that independent brokers weren’t the focus of any complaints in recent investigations. That alone highlights the value of objective, client-first advice.

But we can’t rely on complaints alone to drive change. Reform must come from the top.

Sponsored

Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let

Sponsored by Aldermore

Consumer education is needed

The Financial Conduct Authority (FCA) needs to do more to educate consumers about their rights. Empowering buyers with the knowledge that they are not obligated to use in-house services – that they can choose their own adviser – is key. This could be a timely opportunity for a public-facing education campaign or to rethink the disclosure requirements at the point of sale.

Whatever the tactic, the FCA must do what it can to ensure buyers hold this knowledge from the outset.

Seeking independent mortgage advice means working with a professional whose only priority is you. Independent brokers aren’t tied to a single lender or pressured by sales targets. They offer a wider view of the market, tailored recommendations, and, most importantly, advice based solely on what’s right for the client.

That’s what true financial guidance should look like.

To be clear, this isn’t a war against estate agents. Many act professionally and ethically. But where conditional selling persists – often driven by referral fees and internal pressure – it must be called out and stopped. We need accountability, not ambiguity.

This is a pivotal moment for the industry.

If regulators, lenders, brokers, and politicians don’t act now, they send a clear message: rules can be bent, and consumers are on their own. That’s a message we can’t afford to send.