In recent months, the practice of conditional selling through estate agencies has surged into the spotlight, sparking widespread debate and concern amongst buyers, brokers, consumer advocates, and regulators.
Whilst buying or selling a home in the UK has always been a complex and sometimes stressful process, this new increasing trend of deceptive behaviour threatens to add unnecessary pressure on buyers and undermine the fairness and transparency of property transactions.
But what exactly is conditional selling, why is it causing such a stir, and what can buyers and sellers do to protect themselves? This article explores the issue in detail and provides practical advice for navigating this evolving landscape.
What Is Conditional Selling?
Conditional selling, in the context of UK estate agencies, refers to the practice whereby an estate agent makes it a condition (or strongly implies) that a prospective buyer must use the agent’s in-house mortgage broker or legal services for their offer to be considered or even submitted to the seller.
In other words, buyers are pressured or coerced into engaging the agent’s preferred service providers rather than using independent – or their own – trusted mortgage advisers or solicitors.
This practice, though increasingly common, is problematic for several reasons:
- Most importantly, it is illegal under the Estate Agents Act 1979, which prohibits agents from requiring buyers to use specific services as a condition of making an offer.
- It breaches the Property Ombudsman’s Code of Practice, which explicitly forbids estate agents from forcing or misleading buyers into using in-house services.
- It places buyers in a vulnerable position, potentially reducing access to competitively priced services, variety of products and driving up costs.
Why Is Conditional Selling Is Gaining Attention Now?
The practice of conditional selling has gained traction over the past couple of months due to a surge in complaints from independent mortgage brokers and buyers reporting coercion and unfair practices.
Several recent investigations and industry surveys reveal alarming statistics:
- Approximately 63% of independent mortgage brokers reported that their clients had experienced conditional selling pressures between a six month period across 2023/24 (Financial Reporter).
- Of these brokers, 100% of them said that their clients reportedly suffered stress, hassle and confusion during the buying process.
- 83% of these mortgage brokers also stated that some estate agents treat conditional selling has gotten worse over time (The Negotiator).
In a recent BBC Panorama investigation, large national estate agency chains including Connells and Purplebricks hit the headlines as named agencies participating in conditional selling, though they maintain that such incidents are isolated and not company policy.
However, consumer advocacy groups, trade bodies and independent mortgage brokerages such as Emily’s Mortgage Services are demanding stronger enforcement of existing laws and greater awareness among buyers. Emily Franks, founder of Emily’s Mortgage Services who sees first hand the impact of conditional selling, has launched a petition in partnership with the FT Adviser to regulate and ban practices like conditional selling. In the first seven days since launching, Emily has successfully obtained almost 300 signatures (correct as of 21st July 2025).
Why Conditional Selling Harms Buyers and Sellers
For Buyers
- Loss of Choice and Increased Costs: Buyers are denied the freedom to use independent mortgage brokers or solicitors who might offer more competitive deals or better customer service. In-house panels are often limited, which may translate into higher mortgage rates or inflated legal fees.
- Pressure and Stress: Many buyers feel bullied into accepting terms they are uncomfortable with, causing significant emotional strain during an already stressful time.
- Risk of Delay or Lost Offers: Buyers who refuse to comply with conditional selling demands may find their offers delayed or ignored, potentially costing them the home they want.
- Compromised Negotiation: When estate agents know details about the buyer’s financial arrangements through in-house brokers, the buyer’s negotiating position may weaken, potentially leading to less favourable purchase terms.
For Sellers
Whilst sellers might assume that conditional selling benefits them by facilitating quicker sales, it can backfire by:
- Limiting the pool of genuine buyers to only those willing to use certain service providers.
- Reducing the likelihood of receiving the best possible offer, as buyers with better financial arrangements may be filtered out.
- Damaging the reputation of the seller and their agent if the practice is exposed, potentially complicating future transactions.
What Does the Law Say?
Under the Estate Agents Act 1979 and the Property Ombudsman’s Code of Practice, estate agents must:
- Act fairly and transparently.
- Present all genuine offers to the seller without discrimination.
- Avoid misleading or pressuring buyers into using in-house services.
- Disclose any financial incentives they receive from recommending specific mortgage brokers or solicitors.
Despite these clear rules, enforcement has been weak and often overlooked. This has allowed conditional selling to thrive in some areas of the market causing clients to feel coerced into unfair treatment.
Industry and Regulatory Response
The growing backlash has prompted statements and actions from key bodies. The Property Ombudsman’s role is to ensure fairness and transparency, therefore has reiterated that conditional selling is a breach of its Code of Practice and can lead to disciplinary action.
The Financial Conduct Authority (FCA) does not directly regulate estate agencies, but does have views about conditional selling stating that “conditional selling is back on its radar and (the FCA) will continue to act where we receive intelligence and reports of homebuyers being pressured to use estate agents’ in-house mortgage brokers”.
Consumer groups like the HomeOwners Alliance are actively campaigning for stronger legal penalties and better consumer education, and legislative discussions are underway about introducing more robust powers to curb conditional selling, including fines or license suspensions for offending agents.
Amongst mortgage brokerages, significant figureheads – such as Emily’s Mortgages Services – are actively campaigning for fairer rules to expose and drive out the practice of conditional selling.
How Can A Buyer Protect Themselves?
If you’re looking to buy property, here are practical steps to avoid falling victim to conditional selling:
- Get Your Own Mortgage Agreement in Principle (AIP): Obtain an AIP from an independent mortgage broker before making an offer. This signals you are financially prepared without relying on the agent’s in-house services.
- Document Everything: Keep records of all communications with estate agents. If pressured to use specific services, save emails, text messages, and take notes of conversations.
- Know Your Rights: Reference the Estate Agents Act 1979 and the Property Ombudsman’s Code when confronted with conditional selling. Politely but firmly insist your offer will not depend on using certain service providers.
- Report Misconduct: If an agent refuses to pass on your offer or pressures you unfairly, complain first to the agency’s senior management. If unresolved, you can choose to escalate your complaint to The Property Ombudsman, Trading Standards, or Citizens Advice.
- Seek Independent Advice: Use reputable and independent mortgage brokers and solicitors outside of the estate agency’s panel can often improve the negotiation of better deals, protecting your interests more effectively.
Advice for Sellers
Sellers should be aware of conditional selling’s negative impact and:
- Choose estate agents who commit to transparent, fair practices.
- Demand their agent present all genuine offers promptly, regardless of the buyer’s service providers.
- Avoid agencies known for conditional selling or unethical behaviour.
- Be prepared to switch agents if you suspect your offers are being filtered.
Looking Ahead: Will Conditional Selling Be Curbed?
The increased public scrutiny and coordinated campaigns by mortgage brokers and consumer organisations, along with ongoing investigations by regulators, suggest that conditional selling will face tighter controls soon. However, buyers must remain vigilant and informed, as changing entrenched industry practices takes time.
Conditional selling represents a troubling trend in the UK property market, increasing costs, causing delays, and undermining trust in estate agents. Whilst laws and codes exist to prevent it, enforcement has been inconsistent, leading to widespread concern and calls for reform.
Ultimately, transparency, enforcement of existing laws, and consumer empowerment are key to ensuring conditional selling is stamped out, and property transactions are fair and open to buyers, sellers and professional service suppliers.
If you’re buying or selling property, knowing your rights and options is essential. Insist on fair treatment, document any pressure, and report misconduct. By staying informed and proactive, you can help drive positive change and protect yourself from unfair conditional selling practices.
Keen to support the reduction in conditional selling? You can join our cause by signing the petition HERE. Thank you, we appreciate your support.
Emily's Mortgage Services LTD 