Ombudsman responds to conditional selling scandal with new guidance

Lesley Horton at The Property Ombudsman says estate agents caught pressurising buyers to use their in-house services breach the code of practice.

The Property Ombudsman (TPO) has issued guidance to homebuyers on how to spot conditional selling by estate agents.

The move follows last year’s BBC Panorama documentary which exposed the practice at a branch of Connells in Oxfordshire.

TPO says any pressure for a buyer to use the estate agent’s solicitor or mortgage broker breaches its code of practice.

If an agent insists that a buyer use its in-house or associated services, the buyer has the right to refuse and to expect to be treated fairly and reasonably, the TPO says.

Conditional selling breaches our code of practice, and has no place in a transparent property market.”

Lesley Horton, Chief Ombudsman at TPO (main picture), says: “Conditional selling breaches our code of practice, and has no place in a transparent property market.

“Estate agents must ensure that every buyer is treated fairly, with clear and honest communication at every stage of the process,

“Consumers should be able to trust that estate agents are acting fairly and equally, not using unfair tactics to influence their choices,” she says.

“Our new guidance is designed to provide home buyers with clear information about their rights and to remind agents of their obligations under the code of practice.”

Homebuyers are free to choose their own insurance provider, mortgage broker and solicitor, and all offers must be passed to the seller promptly, regardless of which service provider the buyer has chosen, TPO says.

TPO also says it will continue to monitor complaints of conditional selling, and work closely with the Government and industry bodies to promote best practice.

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