The Intermediary – August 2025 - Flipbook - Page 43
cracking down on conditional selling and the
as a consequence of not doing our jobs properly.
processes that encourage it – mandating clear
There are financial implications of not doing our
disclosures about in-house service incentives.
job properly. Estate agents are the only ones that
Estate agents should commit to transparent,
are not held accountable.”
client-focused practices, ensuring buyers are fully
informed of all options without pressure.”
He calls for “a blanket ban on conditional
selling practices,” to be enforced by regulators, as
Scholfield stresses that the framework is
already there in principle, but is toothless
without proper oversight. A lack of credible
enforcement leaves the industry relying on
well as “ongoing ethical training programmes”
self-policing, which is not reassuring when “the
for agents and “a transparent public register
public perception of estate agencies is that they
of complaints,” alongside mandatory rules
probably have a bit of a wonky moral compass.”
requiring agents to present all offers equally.
Boon agrees that professional ethics alone will
never be enough to change the system.
He says: “To restore trust, clear, enforceable
While Boon acknowledges that professional
ethics are important, he stresses that “history
shows that relying on people's professional
conscience alone will be insufficient. Stronger
rules should prohibit financial incentives
regulation and oversight are essential to
or commissions between estate agents and
eliminate loopholes.”
mortgage brokers, ensuring referrals are made
without sales-related payments. The most
Empowering buyers
important change is legislation.”
Improving the industry’s reputation is not
In his view, legislation should mirror the
solely the job of regulators or agents – mortgage
conveyancing sector’s current rules, where
brokers also have a role to play in preparing
referrals can still be made, but financial
clients to make informed, confident decisions.
incentives are removed from the equation.
Indeed, some argue that this is as much about
Jones warns that “many consumers are
completely unaware that they have a right to
business models as the rules themselves. Davies
choose their own mortgage adviser, free from
points out, as with many industries, that “it can
pressure by estate agents corrupted by corporate
be a race to the bottom on fees which means
pressure and incentives that drive them to act
some agents need an additional source of
in a way that is not compatible with the best
income.”
interests of their clients.”
She adds: “Setting a standard minimum fee
Access FS provides free letter templates
across the board could remove the need for
for brokers and clients – one to challenge
referral fees.”
estate agents directly, and another to escalate
Scholfield links the prevalence of low fees
the matter to the Ombudsman – so advisers
directly to the lack of barriers to entry in the
can push back on behalf of their customers.
profession, saying: “Agents will bemoan the fact
Documenting all interactions and reporting
that UK agents probably get paid the least out of
suspicious practices immediately can go a long
anywhere in the world […] but the thing is, fees
way toward holding bad actors accountable.
are low because anyone can do it.
“If you created a minimum qualification and
some sort of formal regulatory body that you
Boon adds that brokers should be proactive in
dispelling myths and “clearly explaining the risks
of using estate agent-affiliated brokers” so clients
have to be a member of, all of a sudden you
understand they are free to choose “without
add credibility to this role and you can justify
risking property viewings or offers.”
charging a fee that actually covers the costs of
running your office.”
Sanctions and standards
Franks has taken her frustration public,
Building trust starts with early, open
conversations from the very first meeting with
a client. That includes making sure clients
know their options and advising them to “stick
to [their] guns,” which Franks sees as part of a
launching a Change.org petition. It argues that
broker’s core responsibility – “giving them the
estate agents should face the same regulatory
power of education and choice.”
scrutiny as other key players in the homebuying
This kind of vigilance from brokers is not a
process – with sanctions that carry real weight.
replacement for industry-wide reform, but it is
Franks says: “My hope is that the estate agents
a vital part of the picture that brings together
that are breaking the rules and breaking the law
brokers, agents, and industry bodies around the
are held accountable. Everybody involved in a
shared goal of higher standards.
property transaction has a level of regulation;
Structural changes will take time, but brokers
we have a level of standards that we have to
can start shifting the experience for their
adhere to. There are possible prison sentences
clients immediately.
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