Industry figure says stronger line must be taken against conditional selling
Sean Hooker says 2020 probe into practice and previous 'guidance' is being flouted by some estate agencies, as Panorama investigation has shown.
Following last night’s shock Panorama investigation into conditional selling within the property industry and in particular Connells, a leading figure has said the Government must go further than the existing ‘guidance’ on the issue last updated in 2019.
Sean Hooker, Head of Redress at Property Redress, says he was involved in briefing National Trading Standards Estate and Letting Agency Teams’ (NTSELAT) investigation into the practice alongside TPO and Propertymark, the results of which were published in February 2020,.
“We called for transparency, rather than an outright ban and asked Government to legislate for this. They however opted for guidance for the sector,” he tells The Neg.
“Despite this, the issue has raised its head again and whilst I cannot comment on the Panorama allegations, I understand many estate agencies have signed up to the industry code – but clearly there are still dubious practices taking place.
Agency regulation
“This is yet another reason why estate agencies should be regulated and an ombudsman available to give a fair hearing to both parties and discipline poor practices.
“In the meantime, both buyers and sellers can raise these issues with the agent’s redress or ombudsman provider of who we are one, but also should also consider involving National Trading Standards.”
The 2020 NTSELAT report revealed that nearly three quarters of all agents were involved in receiving referral fees, which are the key reason conditional selling exists.
Hooker adds: “It is our view that whilst the practice of referral fees may not in itself cause the consumer specific detriment, the covertness and lack of transparency of this income stream, does not engender trust or a demonstrate a commitment to the duty of care agents should have to both parties in a property sale.”
Maybe Panorama should run a programme about rogue letting agents, especially but not solely those who with-hold paying tenants’ rent to landlords despite 2 x CCJs are awarded or lodged against them, using the Proper*****k Logo on adverts & websites 5 years after their membership expired; using the another redress ogo when there membership expired for a month, failing to adhere to a redress decision, then trading as a property business after big expelled . Not disputed facts btw.
Some form of conditional selling has dominated Estate Agency for 50 years. It has now become industrial particularly with the corporates. The only way to stop it is to ban Estate Agents from selling anything other than property, and that’s likely to happen! – not! Incidentally, it was a shame there was no mention in the programme of Connells‘ owners Skipton Building Society who ultimately benefit from all the skullduggery!
Many brokers that are not linked to estate agencies don’t charge fees. Typically there is a broker fee charged with the estate agency broker to cover the commission. Therefore it is to consumer detriment as the estate agent get a substantial commission for selling the property and also doesn’t allow the consumer to get independent financial advice.
It happened to me when I bought my first home and I never trusted the estate agency again. I still don t 20 years later. The reputational damage is forever just so the estate agent can make a few extra pounds at the consumers expense. This breaks FCA regulations but only if the consumer complains.
If they like the home they are buying their hands are tied.
The changes since the late 1970s have not diluted the sales tactics. In fact, commission driven sales (innumerable add ons) have created for Sellers and Buyers an uneven platform.