Research carried out in the wake of Panorama’s exposé on conditional selling by estate agents has revealed overwhelming public support for stricter regulations in the industry, with a fifth of respondents saying viewings were conditional on using estate agent mortgage brokers.
In a survey of 1,000 recent buyers and sellers across England, carried out by online mortgage, insurance and equity release broker Boon Brokers, 96% of respondents said stricter regulations for estate agents are necessary.
One in five buyers said they were ‘only allowed’ to view a property if they used the estate agent’s mortgage broker, with 42% of respondents saying their viewings were tied directly to mortgage appointments. Almost a fifth (18%) were told their offers would only be considered if they used the estate agent’s in-house mortgage broker.
The survey was carried out to investigate transparency issues and financial pressure in the housing market, with the findings suggesting a ‘concerning level of gatekeeping’ and agents appearing to hold ‘dominant control’ over access to properties, the research author Gerard Boon said.
“When access to property viewings is conditional on using an estate agent’s in-house mortgage broker, buyers and sellers face a double limitation: not only are property viewings heavily restricted, but buyers’ freedom to access impartial mortgage advice is also significantly compromised.
“This crossover drastically limits the pool of properties buyers can see, predicated on whether they engage with the estate agent’s in-house or partnered mortgage service. Ultimately, this lack of choice and transparency will negatively impact consumers.”
The results highlight significant gaps in awareness and illustrates a ‘clear demand for urgent regulatory reform’, Boon added.
“In addition, the findings point to a much wider market issue. When estate agents and mortgage brokers operate too closely, it opens the door to the risk of distorting competition and inflating house prices. This lack of transparency, as the survey suggests, undermines consumer confidence, making one of life’s biggest financial decisions even more complex.”
More than half of the respondents (52%) said they felt pressure from their estate agents, reporting that they were strongly encouraged or even required to use the estate agent’s mortgage broker.
Age was found to play a significant role in how and when pressure was applied: 45% of respondents aged 25 to 44 said they were only allowed to proceed with a property if they used the estate agent’s mortgage broker, but just 6% of respondents who aged 55 and over had a similar experience.
‘These age-related differences suggest a trend of exposing inexperience’, Boon noted.
“Younger buyers, many of whom are first-time purchasers, are more likely to experience coercion or pressure to use estate agents’ in-house mortgage brokers. In the context of first-time buyers, who often rely heavily on guided information from an unbiased source in order to make informed decisions, this will put them at a huge disadvantage in their decision making on what is often the most significant purchase of their lives – their home.”
When questioned about regulation, 85% said they didn’t know that estate agents aren’t governed by any formal regulatory body. Respondents expressed strong support for regulation, with 60% saying all buyers should be guaranteed access to property viewings regardless of which mortgage broker they choose and 78% agreeing that estate agents should not hold direct associations with mortgage brokers.
‘There should be no association between brokers and estate agents’, said Boon.
“In conveyancing, the same solicitor firm – including subsidiaries – is not allowed to act for both buyers and sellers as it creates a conflict of interest.
“This very principle is reflected in Law Society guidance, which prohibits conveyancers from acting for both parties in a transaction due to conflict of interest risks. Extending these similar protections to estate agents and mortgage brokers could help ensure impartial advice and greater fairness.”
Boon is calling for ‘a clear and effective’ solution: to prohibit estate agents from holding direct or indirect associations with mortgage brokers, including the sharing of consumer enquiries or ownership structures.
“By removing these conflicts of interest, legislation would ensure that all buyers receive unbiased, FCA-regulated mortgage advice, untainted by sales incentives.
“This measure alone would immediately dismantle the systems that are currently allowing estate agents to gatekeep access to properties and pressure buyers into financial products that may not serve their best interests. In doing so, it would also unlock access to properties, improve transparency, protect financial interests, and ultimately make the housing market fairer, more competitive, and more trustworthy.”
Ultimately, legislative safeguards are essential, both to protect buyers’ financial wellbeing and to rebuild trust in the housing market, Boon concluded.
“Removing the restrictive practices currently exercised by some estate agents would unlock more homes for genuine competition, increase buyer choice, and create a healthier balance of supply and demand.”
