Estate agent with head office in Leighton Buzzard investigated over sales tactics
A Panorama investigation has claimed Connells estate agents are not acting in the best interests of customers.
The BBC programme makers went undercover at the Abingdon branch of Connells, which has its head office in Leighton Buzzard, to investigate concerns about how the company operated.
But Connells rejected the claims made in the programme ‘Undercover Estate Agent’ and said it was “committed to treating all customers and prospective buyers fairly”.
The Panorama investigation revealed how a seller with the Oxfordshire branch believed her home was sold at a lower price than could have been achieved, with a buyer who might have offered a higher price for the property.
It further revealed the Connells estate agent appeared to overlook the potential buyer in favour of a buyer who had agreed to take out an in-house mortgage.
The mortgage was reportedly worth about £2,000 to Connells, with the business potentially earning a total £10,000 by arranging add-on services and also selling the buyer's property.
The undercover reporter spent six weeks at Connells’ Abingdon office, where she found evidence the senior branch manager favoured prospective buyers if they were planning to take out Connells in-house services, like conveyancing or mortgages, because it made more money for the company.
But Connells said it rejected "any accusation of conditional selling" and that "no harm has been caused" to the customer. There were other offers on the property – but the accepted offer was the highest.
A spokesperson said: “Connells is committed to treating all customers and prospective buyers fairly. We clearly explain how our services work and outline the choices available to clients. We invest significant time and resources in training our teams to ensure they understand the laws, regulations, and guidelines within which they must operate. This includes regular training sessions and a programme of “mystery shopper” quality assurance visits to each branch.
"It is standard estate agency practice to identify proceedable buyers – those in the strongest position to complete a transaction (often referred to as “hot buyers” in the industry) – in the best interest of the seller.
“It is not the case that customers who use our mortgage services are more likely to successfully purchase a property than those who do not.”
Connells is one of the biggest estate agencies in the UK, with more than 1,200 branches across the UK.
The Panorama investigation found it is classed as an "undesirable practice" for estate agents to discriminate against prospective buyers if they don't take out a mortgage through in-house brokers.
Those guilty of the practice, according to the 1979 Estate Agents Act, can be investigated by Trading Standards, but it found rules may not cover the sidelining of potential buyers.
> This article has been edited to further clarify the Panorama investigation took place at the Abingdon branch in Oxfordshire and not the Leighton Buzzard branch.