A recent undercover investigation has exposed questionable business practices at major property firms, raising serious concerns about whether estate agents are truly working in their clients’ best interests.
An undercover operation at Connells, one of Britain’s largest estate agency networks with over 1,200 branches, revealed troubling evidence of biased buyer selection. The investigation took place at their Abingdon office over a six-week period in February.
A seller’s experience
Property seller Julie Gallagher discovered that her estate agent may have cost her thousands of pounds by favouring certain buyers. Her three-bedroom home, marketed at offers over £300,000, attracted significant interest with 15 people attending an open house viewing.
However, internal communications revealed that the branch manager instructed staff to halt further viewings, focusing instead on buyers who agreed to use Connells’ in-house financial services. These preferred customers were internally labelled as “hot buyers” on an office board.
The investigation uncovered that:
- A cash buyer with potentially deeper pockets was sidelined
- The eventual purchaser used Connells’ mortgage and conveyancing services
- The combined deal was estimated to be worth £10,000 to the company
- Staff were told that “just a sale” wasn’t sufficient for the business
Consumer law specialist Lisa Webb described the practices as behaviour that “should be against the law” and warranting investigation by authorities.
Legal Framework Concerns
While the 1979 Estate Agents Act considers it “undesirable practice” to discriminate against buyers who don’t use in-house brokers, experts suggest current regulations may not adequately address the sidelining of potential purchasers observed in this case.
Financial journalist Iona Bain noted a “grey area” in regulations that allows agents to prioritise buyers using their services while turning others away.
Purplebricks Under Investigation
The online estate agency also faced scrutiny following testimony from a former employee who worked there between June and October 2024.
The whistleblower claimed that:
- Properties were deliberately overvalued to secure client instructions
- Staff received commission incentives for convincing sellers to reduce asking prices
- Approximately 18 price reductions monthly could earn staff £900 in additional commission
- Training sessions taught employees how to “plant the seed” for future price cuts
Internal recordings allegedly revealed pressure tactics for selling additional services:
- Staff were discouraged from allowing customers to seek competitive quotes
- Team leaders acknowledged their conveyancing services were “very expensive” compared to alternatives
- Management urged staff to “squeeze every lead for as much as it’s got”
First-time buyers Ryan Evans and Olivia Phelps paid £2,820 for conveyancing services through Purplebricks – nearly three times the current market rate for comparable services, according to price comparison research.
Company Responses
Connells firmly rejected accusations of conditional selling, stating no customer harm occurred and that the accepted offer was the highest received. The company emphasised its commitment to fair treatment and comprehensive staff training on legal requirements.
Purplebricks denied overvaluing properties and confirmed that commission incentives for price reductions are no longer in place. The company, under new ownership since 2023, stated it has worked to improve services and build a customer-focused culture.
Both companies are signatories to the Code of Practice for Residential Estate Agents, which requires fair treatment of all customers and prohibits misrepresentation of property values.
The investigation highlights ongoing concerns about conflicts of interest in estate agency , where companies earn revenue from multiple services beyond basic property sales, potentially creating pressure to prioritise profit over client interests.