Connells and Purplebricks accused of dubious sales tactics in BBC Panorama investigation; what time is it on tonight?
Two of the UK’s biggest estate agencies, Connells and Purplebricks, have been accused of breaching industry codes of conduct, following a BBC Panorama investigation that uncovers evidence of conditional selling and pressure tactics used on staff.
The programme, Undercover Estate Agent, airs tonight at 8pm on BBC One (except in Northern Ireland), and features reporter Lucy Vallance working undercover as a negotiator at Connells’ branch in Abingdon, Oxfordshire. During her six weeks at the firm, Vallance recorded phone calls and conversations that suggest some buyers were favoured because they were prepared to use the agency’s in-house services such as mortgages or conveyancing.
Conditional selling refers to the practice where buyers who agree to take out additional services from the estate agency—such as financial or legal services—are given preference over those who do not, regardless of offer amount. The BBC found that agencies could earn as much as £10,000 in additional revenue through such ‘add-ons’, compared to the average £4,000 sales fee.
The BBC also spoke to a whistleblower from Purplebricks, who alleged that the company had previously encouraged staff through a commission-based scheme to persuade sellers to drop their asking prices—often after initially overvaluing the properties. The whistleblower also claimed employees were under pressure to sell extra services.
In response, Purplebricks told the BBC that “price reductions were once a target for rewarding staff,” but insisted it “does not overvalue properties to win instructions” and the practice no longer takes place.
Connells, meanwhile, issued a statement denying any wrongdoing, saying it is “committed to treating all customers and prospective buyers fairly.”
Julie Gallagher, a Connells customer, told Panorama she believed her home was undersold as a result of the agency's practices. “She’s probably done me out of quite a bit of money – I feel angry and conned,” she said. “She sat on this sofa… and said she was actually working for me and she obviously is not, she’s working for the company’s ends. How dare Connells do that? Just appalling.”
Panorama’s findings also reveal that Connells maintained a “Hot Buyers” board in its office - listing only clients who had agreed to use the company’s mortgage and conveyancing services. Vallance was told these buyers were favoured because they could generate as much as £10,000 in additional income for the agency.
The BBC said it spoke to more than 20 independent financial and mortgage advisers across England and Wales who raised concerns over Connells’ conduct. Connells is a signatory to the Code of Practice for Residential Estate Agents, which forbids conditional selling - where a buyer is encouraged, or feels pressured, to use in-house services or risk losing a sale.
Despite this, the undercover reporter witnessed Connells' senior branch manager describe a buyer who was using Connells’ services as a more favourable option. When Vallance asked about a higher cash offer, an office administrator replied: “They will probably more likely aim to get somebody who’s signed up with us and wants to use our conveyancing, as opposed to someone who is a cash buyer… That’s just how Connells are. That’s why they ride you if you don’t have enough mortgage appointments.”
Consumer watchdog Which? also features in the programme. Its consumer law expert Lisa Webb said: “This absolutely should be against the law and something that I think these estate agencies really ought to be investigated by the authorities for, because this should not be happening.”
The investigation follows growing concern among property experts and campaigners about conditional selling practices. Both FT Advisor and the HomeOwners Alliance have previously called for such practices to be outlawed to ensure a fairer housing market.
According to the BBC synopsis, Panorama’s Undercover Estate Agent “goes undercover at one of the UK’s biggest estate agencies to investigate claims it’s not acting in the best interests of customers.” It adds that the programme “uncovers evidence the company favours buyers taking out mortgages brokered by the company itself, over the interests of other potential buyers.”