Conditional selling - your views wanted

ended 02. May 2022

Newspage has been made aware by a number of brokers over the past week or so that conditional selling is still rife, despite being exposed by us back in February. Basically, it seems certain corporate estate agents are still using people's desperation to buy and the sheer strength of demand in the market to sell in-house advice, whether mortgage-related or legal. Few Qs for you:

  • Is conditional selling still rife, or has it dropped off a bit in recent months?
  • Who are the main culprits? If you have any evidence to back this up, please provide it (or say you do have it to share with a journalist if need be)?
  • Are industry bodies doing enough to stop conditional selling or are they largely ineffective?
  • What should be done to stop conditional selling?

Any other thoughts, jot them down. We'll be issuing your views to the media tomorrow morning.

 

3 responses from the Newspage community

Conditional selling is widespread. Just last week an inexperienced first time buyer casually dropped into our conversation that the estate agent was insisting he sit down with their in-house mortgage advisor in order to view the property. It's a particularly common practise with first time buyers, because they know no better. It's detrimental to the vendor (who they're supposed to be representing), the prospective buyer, and the mortgage advisor they're stealing business from. It's appalling how EA's can still get away this nonsense. Much tougher regulation is long overdue, including company fines, and the legal requirement for EA's to tell all potential buyers they don't need to use their advisor. Both verbally and in-store signage.
Posts from broker on social media would suggest it’s still happening, but maybe less than it was earlier in the year; there has been a lot of press around the issue and that’s helped educate those working in this market of the code of conduct estate agents are supposed to be following; which basically tells them any kind of conditional selling practices are a big no no. Mortgage industry trade bodies have been briefing their members on the rules and regulations around this issue and have advised brokers to direct their clients to Trading Standards to make complaints, as the public body with the mandate to take action. However, any mortgage industry body can only connect with it’s own membership, so it’s preaching to converted; ideally we need the various estate agent bodies to be communicating the rules to their members to ensure the widest audience of market players is reached and real change can happen.