FTAdviser readers have called out and criticised conditional selling across the mortgage market following recent allegations made against estate agency Connells.
Readers criticised Connells for its practices, alleged conditional selling was “rampant” in the agency, and pointed to other instances of conditional selling across the industry.
Last week Connells was accused of conditional selling after an adviser revealed his client had received an email from the agency stating that, because he would not be using the in-house adviser services, he would need to resubmit his accepted offer.
One commenter posted:
A spokesperson for Connells said: “Pressurised selling is not something we condone. Connells will take robust action if any instances are brought to our attention.
“We resolved the complaint very quickly after being made aware of it and the purchase progressed as it should. We strive to deliver a high quality of service to everyone.”
Sharing a personal experience, another user said they used to work for Connells as a mortgage broker and occasional branch manager over a decade ago and that the practice of conditional selling was “rampant”.
He said the agency would frame things from a vendors perspective, for example that they wanted a swifter sale.
“The vendors were often more annoyed about this than the buyers, and we spent more time convincing them, especially with the £1,000 cashback, than we did the buyers, who often simply didn’t care.
They predicted that this may not stop anytime soon: “Sadly as transaction numbers dwindle, estate agents will double down on this to ensure they squeeze every penny out of the few transactions they can secure.”
They additionally stated that, as they see similar articles on a monthly basis, “nothing ever changes, nothing will.”
Another user stated that this represented “no change” and, after joining the industry in 1988 said that “the number of times estate agents have tried this trick I have lost count”.
They added that this “has always been par for the course” in one way or another, with firms suggesting buyers will not get the house unless they go through their in-house staff.
The user went on to describe this practice as “coercive control.”
Another commenter said that they have encountered conditional selling “on many occasions with Connells” and described the agency as “certainly the biggest offenders”.
However, the same user also acknowledged that “this practice is not confined to Connells”.
Across the industry
The sentiment that conditional selling exists across the industry was shared by many other commenters.
Other readers said there were two local estate agents they were aware of "employing these tactics".
Another user pointed to a “well known regional agent” as conducting the same practice.
One commenter posted:
Regulation
On what could be done, a user stated that the question of regulation continues “unbated”, and complained that the government and Financial Conduct Authority are not doing enough to enough to put a stop to it.
The user complained that the regulatory bodies “hammer advisers for the least little thing” but allow agencies to get away with conditional selling.
“So much for consumer duty and customer vulnerability.”
tom.dunstan@ft.com
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