Two thirds of advisers report conditional selling in industry

Over three in five (63%) financial advisers have said their clients have experienced conditional selling in the six months to May 2024, Access Financial Services (FS) has revealed.

All of this group stated that this had caused their client harm, such as stress, hassle or confusion.

Conditional selling is an unlawful practice whereby an estate agent tells a prospective buyer that they must use the agent’s in-house broker in order for their offer to be put forward on a property.

Access FS found that a third (33%) of advisers said conditional selling has got worse in the six months to May 2024, with the same proportion believing that levels are the same when compared to previous periods.

A further 30% said they don’t know, while 4% said they think the situation is improving.

The firm also found that over four in five (83%) mortgage advisers feel like there are some estate agencies where conditional selling is almost standard practice.

As a result, Access FS has created two free letter templates for financial advisers and their clients to help counter this unlawful act. One letter is to the estate agents to make them aware of the situation, and failing a positive response, and the second letter is for the property ombudsman to request support.

Chief executive officer at Access Financial Services, Karl Wilkinson, said: "Something is broken in the property industry when this practice continues after 20 months of our campaigning against conditional selling, and developing tools and processes to protect advisers and their clients.

"A significant minority of estate agents are being allowed to continue to negatively impact our industry. This has to stop.

"Conditional selling is morally wrong and a clear breach of Consumer Duty as well as The Property Ombudsman’s Code of Practice and the Estate Agents Act 1979. What other industry puts up with this kind of harmful behaviour? We can do better."



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