Estate Agents Under Scrutiny for Unethical Practices

Estate Agents Under Scrutiny for Unethical Practices

Estate Agents Under Scrutiny for Unethical Practices

The UK property market is built on trust, transparency, and fairness. However, a recent undercover investigation into top estate agencies—Connells and Purplebricks—raises serious concerns about whether these values are truly upheld. Allegations of conditional selling, manipulation of buyers, and pressuring customers into expensive in-house services have emerged, potentially compromising the integrity of the home-buying process.

Favoring Profit Over Fairness: The Case of Connells Estate Agency

Julie Gallagher, a home seller, felt manipulated after discovering her property may have been sold below its potential market value. Although a potential buyer existed—who might have offered more—the deal was allegedly steered toward another buyer willing to use Connells’ in-house mortgage services.

That mortgage alone could have earned Connells approximately £2,000, with the total revenue from in-house add-on services reaching up to £10,000. Julie expressed frustration, saying, “She sat on this sofa… and said she was working for me. Obviously, she’s not—she’s working for the company’s ends.”

In-House Services: A Lucrative Sales Machine

An undercover reporter, Lucy Vallance, infiltrated Connells’ branch in Abingdon, Oxfordshire. Within six weeks, she uncovered that senior managers prioritized buyers who used Connells’ mortgage or conveyancing services. These “hot buyers” received preferential treatment—sometimes at the expense of higher cash offers.

A board labeled “Hot Buyers” was prominently displayed in the office, featuring names of clients who had opted into in-house services. Staff were instructed to limit or stop property viewings for clients not using Connells’ financial products, regardless of potential offer value.

Conditional Selling: A Breach of Estate Agency Ethics

According to the Code of Practice for Residential Estate Agents, practices like conditional selling—requiring clients to use in-house services as a condition for favorable treatment—are prohibited. Yet the investigation found that Connells’ staff were under intense pressure to generate revenue from mortgages and conveyancing deals, often blurring ethical lines.

Even when a cash buyer showed strong interest in Julie’s property, she was overlooked simply because she hadn’t committed to using Connells’ financial services. An office administrator candidly admitted, “Just a sale is not good enough for Connells. They’ll likely aim to get someone signed up with their conveyancing instead.”

Purplebricks Accused of Overvaluing and Upselling

The online estate agency Purplebricks also faced serious allegations. A former sales negotiator claimed the company intentionally overvalued properties to secure listings, only to later pressure clients into reducing asking prices—earning staff commission in the process.

Panorama was provided with internal meeting footage, where sales leaders encouraged staff to push overpriced services without inviting clients to compare costs. One team leader openly stated, “We don’t want them to get a quote for comparison because we are by far very expensive.”

First-Time Buyers Left in the Dark

Ryan Evans and Olivia Phelps, first-time buyers in Sutton-in-Ashfield, paid £2,820 for conveyancing services via Purplebricks—a cost nearly three times higher than comparable quotes found online. Ryan lamented, “We were none the wiser… I certainly felt they took advantage of us because we were new to the process.”

Such stories echo across the UK, where first-time buyers are often misled or manipulated by sales teams focused more on internal commissions than customer service.

Pressure to Upsell: Sales Targets over Client Needs

Both estate agencies were exposed for pressuring staff to prioritize financial products over client interests. A Purplebricks team leader was recorded motivating staff with aggressive language, saying, “Let’s try and really squeeze every lead… there’s still a heinous amount of money to be made.”

Lisa Webb of consumer rights group Which? commented, “It’s a real issue if estate agents are incentivising people to make fast decisions without shopping around. Clients deserve clarity and fair options.”

Code of Conduct vs. Reality

Both Connells and Purplebricks are signatories of the Code of Practice for Residential Estate Agents, which mandates fairness, integrity, and transparency in dealings with both buyers and sellers. However, the practices uncovered suggest a wide gap between policy and reality.

Connells responded that it is “committed to treating all customers fairly,” while Purplebricks stated it no longer rewards staff for encouraging price cuts and denies promoting hard-sell tactics.

Purplebricks emphasized that since new ownership in 2023, the company has “worked hard to improve service and build a customer-first culture.”

Conclusion: Time for Reform in the Estate Agency Industry

These revelations shine a light on systemic issues in the UK estate agency sector, where profits sometimes take precedence over ethics. Conditional selling, inflated service fees, and misaligned incentives can damage both client trust and market fairness.

Author

  • After years crunching numbers for other people, Elliot sunk his savings into a small-batch coffee roastery on his hometown’s main street. He now writes about running a brick-and-mortar in a digital world—think cash-flow hacks, local-marketing tips, and market trends that actually matter to everyday owners. His motto: “Keep it brewed, keep it simple.”

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