The guidance has been published in light of the BBC’s Panorama documentary last year, which showed that some estate agents were pressuring buyers to use in-house services or face missing out on the property.
This prompted a campaign started by mortgage broker Emily Franks and the FT Adviser to ban the sales tactic, which was described as “unacceptable” by housing minister Matthew Pennycook.
The guidance states that conditional selling is not allowed under The Property Ombudsman’s Codes of Practice.
It reminds buyers that they should not be stopped from viewing a property on the condition that they use an in-house or associated service, and that an estate agent should not insist they arrange an appointment with their broker to discuss mortgage options.
Estate agents must also not tell a buyer that their offer will be considered only if they use their mortgage broker or solicitor.
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The guidance also informs buyers that they have the right to refuse to use services recommended by the estate agent and are free to choose their own.
The Property Ombudsman will continue to monitor complaints and work with the government and industry bodies to promote best practice.
Lesley Horton, chief ombudsman, said: “Conditional selling breaches our Code of Practice and has no place in a transparent property market. Estate agents must ensure that every buyer is treated fairly, with clear and honest communication at every stage of the process.
“Consumers should be able to trust that estate agents are acting fairly and equally, not using unfair tactics to influence their choices. Our new guidance is designed to provide homebuyers with clear information about their rights and to remind agents of their obligations under the Code of Practice.”
