"The Panorama documentary sheds much-needed light on this highly unethical and illegal practice of ‘conditional selling’. It’s not okay that estate agents are withholding offers from sellers in favour of those using in-house services"
- Samantha Lindsay - My Mortgage Angel
A BBC Panorama investigation has placed estate agency practices under the spotlight, alleging that some firms are prioritising internal targets over the interests of buyers and sellers, raising concerns across the industry and prompting warnings that frontline staff will bear the brunt of public anger.
In Undercover Estate Agent, which aired last night, BBC reporter Lucy Vallance went undercover at a Connells branch in Abingdon, Oxfordshire. The documentary claimed that the agency routinely favoured buyers who agreed to use its in-house mortgage and conveyancing services, even when those offers were not the highest.
Meanwhile, former Purplebricks staff alleged they were under pressure to sell ‘add-on’ services and persuade sellers to lower their asking prices, actions that potentially benefit the company financially.
Ian Macbeth, managing partner at Avocado Property, said the real consequences will be felt by those working on the front lines. “While corporate executives prepare their responses, it is the customer-facing estate agents, negotiators, valuers, and consultants, who will be left to deal with the consequences of institutional decisions they never made,” he said.
“The truth is they were probably just doing what they were trained to do,” Macbeth added. Recalling a similar experience earlier in his career at a different agency, he explained, “In the main, we probably didn’t really want to do it. We knew it was morally incorrect, but we would face disciplinary action if we didn’t follow what was being driven from the top.”
The documentary highlighted how Connells, one of the UK’s largest agency groups, can earn up to £10,000 per customer by promoting internal financial services, well beyond the typical £4,000 sales fee. These include mortgage referrals and legal services, which are not mandatory but appear to be strongly encouraged.
“The estate agency industry has long operated on a high-pressure sales model, where staff are trained to follow strict scripts and upsell services to meet rigid targets. Failure to conform risks job security,” said Macbeth. “Staff aren’t rogue agents, they’re following instructions, trying to earn a living, and often questioning the ethics of what they’re told to do. But when the PR storm hits, it’s the people on the ground who face the anger and scrutiny, while senior management retreats to boardrooms.”
The programme showed buyers being told, implicitly or explicitly, that using in-house services would improve their chances of success. Sellers, meanwhile, were not always made aware that offers were being filtered based on whether buyers agreed to those extras.
Julie Gallagher, who sold her home through Connells, expressed frustration with the experience. “She sat on this sofa… and said she was actually working for me, and she obviously is not, she’s working for the company’s ends,” Gallagher said. “How dare Connells do that? Just appalling.”
Mortgage and protection adviser Samantha Lindsay of My Mortgage Angel noted that the issues raised go beyond a single agency. “The Panorama documentary sheds much-needed light on this highly unethical and illegal practice of ‘conditional selling’,” she said. “It’s not okay that estate agents are withholding offers from sellers in favour of those using in-house services.”
She added, “Pressurising aspiring homeowners to use an in-house mortgage adviser is not ok. For anyone taking out a mortgage, it’s imperative that they look at all the options. Do speak to the in-house estate agent broker if you want to, but also seek advice from an independent broker who can take you through your options before you make a decision.”
Lindsay recounted a recent example: “A client I have been working for many years was recently told by an agent that they had to use their in-house broker when purchasing a new property. It’s upsetting for our long-standing clients as they feel they have to pick between working with us, a broker with whom they have built a relationship of trust over the years, or losing their dream home.”
“More information and education around this for aspiring homeowners is key so they understand their options right from the start,” she concluded.
“Agents must provide a full duty of care and ensure impartiality to all participants throughout the entire sales and transactional process. Buyers and sellers must have freedom to choose products and services that meet their needs and preferences," noted Nathan Emerson, CEO of Propertymark, “It is important that agents display an understanding of the impact of key factors which interact with the buying and selling process. This includes areas such as contract law, conveyancing, and mortgage application processes,"
“Agents must adhere to the terms of undertaking full due diligence on all parties such as compliance, anti-money laundering regulations, proof of funds and the ability to purchase. They can offer to introduce services which provide appropriate advice and products, but there must be full transparency and absolutely no conflict of interest."
As public attention intensifies, agents across the country fear being tarred by the same brush. “You sling mud at one and everybody gets covered,” said Macbeth. “The story might name Connells and Purplebricks, but the public reads ‘estate agents’, and that paints us all with the same brush.”
“This reputational contagion is not just damaging, it’s demoralising,” he continued. “The staff are just following instructions. They’re the ones who are going to have to deal with this, and it’s their commission, their stress, and their mental health that will be hit. Everyone else just disappears into the background and waits for it to blow over.”
Consumer organisation Which? called for stronger oversight and urged that any breaches of industry standards be investigated. While estate agents are required to act in the best interests of their clients and treat buyers fairly, the report suggests that in practice, some sales tactics may undermine those principles.
Both Connells and Purplebricks have denied any unfair treatment of customers.
