Panorama – Estate Agents Exposed
(estimated reading time: 3 - 4 minutes)
(it looks like a lot, but it's worth the read)
Having just watched the BBC Panorama report on estate agency practices, I found myself shocked and dismayed by the unethical behaviours that I had believed were long gone since the late 1990s. This experience has compelled me to put pen to paper, or rather, fingers to keyboard, and share my reflections on what I saw.
To give a brief overview, the Panorama investigation went undercover with Abingdon's Connells estate agents and also interviewed a whistleblower from a large online-only budget estate agency. The latter was revealed to be inundated with complaints about poor client communication, a consequence of their budget model that left sellers largely on their own. More concerning was the revelation that these agencies were pushing vulnerable clients towards conveyancing services that cost significantly more than standard rates, all for undisclosed referral fees.
Connells, on the other hand, were shown to prioritise buyers using their mortgage services over higher cash offers, simply to secure extra income. I was shocked to see that this level of unethical practice is, still present in the industry.
Conditional selling is one of those practices that, I was saddened to see, still lurks in the property industry, even in places like Oxford, Kidlington, and Botley. In essence, it means steering clients towards certain services like mortgage providers or conveyancers based on the agency's own financial incentives rather than what's best for the client. This can lead to sellers and buyers not getting the best deals or service, ultimately undermining trust in the industry.
In the Panorama investigation, we saw how some agencies would prioritise buyers who used their in-house mortgage services, even if there was a better cash offer on the table. This kind of behaviour doesn't just hurt individual clients; it casts a shadow over the profession as a whole. As we strive to provide transparent and ethical services in our own communities, it's essential to remain vigilant against these outdated and unethical practices.
At Alistair Redhouse, we believe in doing things professionally. When our clients ask for recommendations for solicitors, we always suggest three trusted local solicitors, and we never accept any form of remuneration for it. Our goal is to ensure our clients get the best service without any hidden agendas.
When it comes to mortgage advice, there's genuine value in referring clients to a reputable, independent mortgage broker. We do this because we want to protect our clients from the pitfalls of going directly to a bank, where their options might be limited, or falling into the hands of a less reliable broker who could do more harm than good. By recommending someone we trust, we help our clients find the right mortgage products and ultimately save time and stress.
What really saddens me is that the practices highlighted in the Panorama report only deepen the public's distrust in estate agents. The reality is that while some agencies, like us at AR Property Partners, are staffed with highly qualified and experienced professionals, the industry as a whole can sometimes be overshadowed by larger corporations that use exceptional systems and procedures that enable them to employ low skilled people to follow the process. This often means that less experienced agents are simply following a script, rather than offering truly personalised, expert advice.
Take, for instance, the property featured in the Panorama episode. It was valued at £175,000, and an agency like Connells might charge a 1% fee, amounting to £1,750. At Alistair Redhouse, we have a minimum fee that ensures we can dedicate the necessary time and resources to achieve the best outcomes for our clients. When fees are too low, agencies may feel pressured to rely on upselling other services to make ends meet, which doesn't serve the client’s best interest. In the program they explain that they get an average of £2,000 for a mortgage and therefore would earn more from the mortgage than from the sale of the house.
What we need, as an industry and as a country, is clear, legislative minimum qualifications for estate agents. At Alistair Redhouse, every member of our team holds at least an Associate level qualification with the Guild of Property Professionals, and we believe that raising the bar for qualifications across the board will lead to better experiences and improved trust for all clients, even if it means slightly higher fees in the long run. After all, the focus should always be on the client, not just the bottom line.
The BBC Panorama episode served as a stark reminder that while most estate agents are honest professionals, there are still too many instances where profit is prioritised over integrity. These practices damage trust, hurt clients, and reflect poorly on the entire industry.
If I’m to be frank, the larger and more corporate the agency the more they steer towards high pressure selling tactics and pressure from head office to drive figures at all costs even at the home seller’s expense.
At Alistair Redhouse, we believe in transparency, fair dealing, and putting people first. We don’t engage in conditional selling, and we’re proud to operate with qualified professionals who genuinely care about their clients' best interests.
If you’ve seen the programme and felt concerned, please know that there are still agents out there doing things the right way.
If you're thinking of selling or letting, and want advice you can trust without any hidden agendas, feel free to reach out. We're always happy to have a proper conversation without pressure or conditions.