An undercover BBC Panorama investigation screened last night has revealed controversial sales practices at two of the UK’s leading estate agencies: Connells and Purplebricks.
The programme focused on Connells’ Abingdon branch, where an undercover reporter posed as a new employee.
Evidence showed that potential buyers who agreed to use Connells’ in-house mortgage and conveyancing services were favoured, even if higher offers came from others.
This practice, known as “conditional selling,” breaches industry codes of conduct and could violate consumer protection laws.
HOT BUYERS
One seller, Julie Gallagher, discovered her property was sold to a buyer using Connells services, while a cash buyer who may have offered more was sidelined. Staff referred to such preferred buyers as “hot buyers,” with internal targets pushing mortgage and conveyancing referrals.
Connells denies wrongdoing, stating no harm was caused and that the chosen offer was the highest. The company said employees face disciplinary action if they breach its standards.
PURPLEBRICKS’ WHISTLEBLOWER
Panorama also investigated Purplebricks, where a whistleblower revealed that properties were routinely overvalued to win instructions.
Staff were then incentivised to convince sellers to drop prices later – earning commission in the process. The whistleblower filmed meetings where team leaders advised staff to “plant the seed” of price reductions early on.
Buyers were also pushed toward Purplebricks’ expensive in-house conveyancing services. First-time buyers Ryan Evans and Olivia Phelps paid nearly three times the market rate for conveyancing after being directed to the firm’s preferred provider.
CODE OF PRACTICE
Both agencies are signatories to the Code of Practice for Residential Estate Agents, which demands fairness and transparency. While Purplebricks acknowledged past issues with staff incentives, it said those policies had changed under new ownership.
The investigation raises serious questions about conflicts of interest in the property sector and the pressure on agents to maximise cross-sell revenues at the expense of buyers and sellers.
Watch the programme HERE.
