The recent Panorama investigation into the behaviour of some estate agents has reignited public concern about unethical practices in the property industry. While the revelations have shocked many, the uncomfortable truth is that such behaviour is far from new, and in some cases, it has been quietly embedded in the industry for decades.
Nostalgia often paints the past in a kinder light. Many like to believe that the property market was more straightforward, honest, and transparent two, three, or four decades ago. Unfortunately, that is not the case.
When I worked in Bristol in the 1980s, I saw first-hand how certain unscrupulous practices operated in plain sight. It was not uncommon for estate agents to alert their favoured local property renovators the moment they secured a probate property in need of refurbishment. A discreet cash payment would change hands, a below-market offer would be made, and the property would be sold quickly, often without being properly marketed, to the financial detriment of the deceased’s beneficiaries.
Equally concerning was the cosy relationship between some agents and contractors. Work for timber treatment or damp-proofing (and wall-tie work) frequently went to whichever contractor offered the agent the biggest kickback, not necessarily the one best qualified to do the job properly.
Perhaps the most enduring issue is that of referral fees, a perennial hot potato in the world of conveyancing. Younger conveyancers might be surprised to learn that referral fees were once banned outright and calls for a return to a complete ban are growing louder. While I have never paid a referral fee myself (and have, at times, lost work because of it), I have witnessed how these arrangements operate behind the scenes. One former employer of mine would meet the neighbouring estate agent every month for lunch, handing over an envelope of cash proportional to the number of conveyancing cases referred that month. My former employer was not the only one behaving in that way.
Are things worse today? In my experience, not necessarily. In fact, in some respects, the industry may have improved. I have had the privilege of working with dozens of estate agents over the years, the vast majority of whom are honest, professional, and a pleasure to work alongside.
Nevertheless, there is no doubt that the sector remains open to abuse, and that is why proper regulation is long overdue. Estate agents, like other professionals in the property industry, should be subject to robust, enforceable standards. Likewise, referral fees should always be transparently disclosed and sensibly capped, I believe a limit of around 10% of the conveyancer’s fee would be reasonable. An outright ban might be well-intentioned but is unlikely to succeed in practice.
There are also steps that conveyancers themselves can take. Accepting work from agents who they know bend or break the rules makes them complicit; you should be willing to walk away from questionable relationships. Until proper regulation is in place, we should all live and work by a simple but powerful principle: do unto others as you would have them do unto you.
It really is that straightforward.
Rob Hailstone is founder and CEO of Bold Legal Group
