A new study has revealed widespread pressure on homebuyers to use estate agents’ in-house mortgage brokers, amid mounting concern over transparency and fairness in the UK housing market over conditional selling.
The research, commissioned by Boon Brokers and conducted by TLF Research, surveyed 1,000 people from across England who had used an estate agent for a residential property transaction within the past two years.
The findings follow recent conditional selling revelations from the BBC’s Panorama documentary Undercover Estate Agent.
According to the study, 80% of respondents experienced direct crossover between property access and the promotion of in-house mortgage services, while 18% reported being told their offer would only be considered if they used the agent’s own broker.
More than half (52%) said they were strongly encouraged or required to use the estate agent’s mortgage broker.
The study found 96% of respondents believe stricter regulations are needed for estate agents, and 60% believe access to property viewings should be guaranteed regardless of the mortgage adviser chosen. A large majority (78%) agreed estate agents should not have direct associations with mortgage brokers.
Researchers also identified age-related differences in how buyers experience pressure. Some 45% of respondents aged 25 to 44 said they were only allowed to proceed if they used the in-house mortgage broker, compared to just 6% of those aged 55 and over – suggesting younger, less experienced buyers are particularly exposed to coercive sales tactics.
Gerard Boon, managing director of Boon Brokers, said: “There should be no association between brokers and estate agents. 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. The same principle should apply to estate agents and mortgage brokers.”
The report concludes with a call for legislative reform, urging the government to introduce enforceable rules to prevent estate agents from holding direct or indirect relationships with mortgage brokers and to guarantee fair access to property for all buyers.
Without such changes, the report warns, the UK housing market risks remaining opaque, anti-competitive and unfairly tilted in favour of those with the right connections – at the expense of genuine buyer choice and transparency.
Read the orginal article: https://propertyindustryeye.com/regulation-call-as-study-finds-conditional-pressures-placed-on-homebuyers/
