If you have ever made an offer on a property and been told that you need to speak to the estate agent's in-house mortgage adviser before it can be submitted, you may have encountered conditional selling. It is one of the most widespread and poorly understood practices in the UK property market, and in January 2026, The Property Ombudsman published new guidance specifically designed to help buyers recognize and challenge it.
The fact that formal guidance was needed at all tells you something important: conditional selling is not a rare edge case. It is a common, systemic issue that affects buyers and sellers across the country, often without either party fully realizing what is happening.
This article explains exactly what conditional selling is, why it happens, what the law says about it, and the steps you can take to protect yourself whether you are buying, selling, or simply trying to navigate the property market with confidence.
Conditional selling is illegal under The Estate Agents Act 1979. Every offer must be passed to the seller promptly, regardless of which mortgage broker or solicitor the buyer chooses to use.
What Is Conditional Selling?
Conditional selling occurs when an estate agent makes it a condition, either explicitly or through implication, that a buyer must use the agent's in-house or recommended services in order for their offer to be submitted to the seller. These services typically include mortgage advice, conveyancing, or legal representation.
In practice, it can take several forms. Some agents are direct about it, telling buyers outright that their offer will not be put forward unless they book an appointment with the in-house mortgage adviser. Others are more subtle, suggesting that offers from buyers who use the agent's preferred services are more likely to be accepted, or that the agent needs to verify the buyer's financial situation through their own team before proceeding.
There is even a version that applies to sellers. An agent may take on a property at a reduced commission rate on the understanding that the seller refers buyers to their in-house financial services, creating a financial incentive that can distort the way offers are handled and presented.
In all these forms, the practice is the same: an agent is using their position as the gatekeeper between buyers and sellers to generate added income from referral fees, at the expense of fairness and transparency for both parties.
Why Does It Happen?
Understanding why conditional selling happens is important, because it helps you recognize it when it occurs and respond to it effectively.
The answer is straightforward: money. Traditional estate agents earn commission not only on the sale of properties but also on referrals to associated services. When a buyer uses an agent's recommended mortgage broker or conveyancer, the agent typically receives a referral fee.
These fees can be substantial, and in a competitive market where commission rates on sales are under pressure, they represent a significant additional income stream.
The financial incentive is so significant that in some agencies, front-of-house staff are incentives through bonuses or targets to direct buyers towards in-house services. This creates a structural conflict of interest at the heart of the traditional agency model: the agent is supposed to be acting in the best interests of the seller, but their financial interests may be better served by prioritizing buyers who use their own services, regardless of the strength of the offer.
A BBC Panorama investigation uncovered cases where sellers received lower offers than they might otherwise have achieved because agents were prioritizing buyers using their in-house services. This is the hidden cost of conditional selling that most people never see.
Is Conditional Selling Illegal?
Yes. Conditional selling is illegal under the Estate Agents Act 1979, which requires that every genuine offer for a property must be passed to the seller promptly and without discrimination, regardless of what services the buyer chooses to use.
It is also a breach of The Property Ombudsman's Code of Practice, which explicitly prohibits agents from pressuring or misleading buyers into using in-house services, and requires clear disclosure of any financial incentives received from recommending third-party services.
In January 2026, The Property Ombudsman reinforced this position by publishing new consumer guidance following the BBC Panorama documentary on the subject. Chief Ombudsman Lesley Horton stated clearly that conditional selling has no place in a transparent property market, and that consumers must be able to trust that estate agents are acting fairly and equally.
Despite being illegal, the practice remains widespread. Approximately 63 percent of independent mortgage brokers reported that their clients had experienced conditional selling pressures in a six-month period across 2023 and 2024, according to research by the Financial Reporter. Enforcement has historically been inconsistent, and many buyers and sellers are simply unaware of their rights.
How to Spot It
Conditional selling is not always obvious. It can be dressed up in professional language and presented as standard procedure or a helpful extra step in the process. Here are the warning signs to look out for.
You are told that your offer cannot be submitted until you have spoken to the agent's mortgage adviser, even if you already have a mortgage in principle from an independent lender. This is one of the clearest signs that conditional selling is taking place.
The agent suggests, either directly or indirectly, that offers from buyers using their in-house services are more likely to be accepted or move faster through the process. This is both misleading and illegal.
You are told that the agent needs to verify your financial situation through their own team before proceeding. Unless there is a transparent and genuinely independent reason for this, it is a red flag.
You feel pressured, rushed, or made to feel that using your own independent broker or solicitor will disadvantage your offer. This pressure, however it is applied, is a breach of the agent's obligations to both buyer and seller.
You have the right to use any mortgage broker, conveyancer, or solicitor you choose. Your offer must be submitted to the seller promptly, regardless of that choice.
How to Protect Yourself.
If you are a buyer, there are several practical steps you can take to protect yourself from conditional selling.
Ask the agent in writing, before submitting an offer, to confirm that your offer will be forwarded to the seller promptly and that your decision to use your own mortgage broker or solicitor will have no bearing on how your offer is handled. A written request creates a paper trail and puts the agent on notice that you are aware of your rights.
If the agent insists that you use their in-house services, refuse politely but firmly and restate your intention to use your own independent advisers. Document the conversation. If the agent continues to apply pressure or your offer is not submitted, you have grounds to escalate.
Report the behaviour to Trading Standards via the Citizens Advice Consumer Service in England and Wales. You can also raise a complaint directly with The Property Ombudsman or the Property Redress Scheme, depending on which body the agent is registered with. These organizations can investigate and, where appropriate, impose sanctions and compensation.
If you are a seller, it is worth being equally vigilant. Ask your estate agent to confirm in writing that they will present all genuine offers to you promptly and without qualification. If you discover that your agent has been withholding or deprioritizing offers because of a buyer's choice of services, you have grounds for a formal complaint.
Why the Online Model Eliminates This Problem.
One of the most significant structural advantages of the online estate agency model is that it removes the financial conflicts of interest that give rise to conditional selling in the first place.
Online estate agents charge a fixed fee for their service. They do not earn commission on the sale price, and they do not have in-house mortgage or conveyancing services generating referral income. There is no financial incentive to prioritise one buyer over another, to steer buyers towards particular services, or to do anything other than present all genuine offers to the seller clearly and promptly.
For buyers and sellers alike, this transparency is one of the defining differences between the online model and the traditional high street approach. When the agent's interests and the client's interests are fully aligned, the entire process becomes cleaner, fairer, and more straightforward.
Sell Your Home the Transparent Way with I Am The Agent
At I Am The Agent, we have been helping homeowners sell and let their properties for over 17 years on the simple principle that you deserve clear, honest, and genuinely independent service.
We charge a fixed fee. We do not earn commission on your sale. We have no in-house mortgage service to push, no referral fees to chase, and no financial incentive to treat any buyer differently from any other. Every offer is presented to our sellers promptly and in full, as the law requires and as our clients deserve.
With listings on Rightmove and Zoopla, a dedicated team of experienced agents, and a range of flexible packages to suit every seller, we provide everything you need to achieve a successful sale at a price that is transparent from day one. If you are ready to sell your home with an agent you can trust, get started with I Am The Agent today and discover what a genuinely straightforward sale looks like.