Estate agents use 'unfair practices'

Posted: 30 Nov 2009 10:53:02 GMT

Many UK estate agents are boosting profits by pressuring buyers into using additional services that will earn agency staff greater commission.

An investigation by Times Money has revealed that many estate agents are using unfair practices by forcing home buyers into in-house mortgage loans.

This could leave home buyers thousands of pounds worse off.

In one case the paper reports that a buyer was told by a Barnard Marcus agent that her offer on a three-bedroom south London home would only be accepted if she took on the in-house home loan service.

But this kind of practice is not unusual, with figures from the Office of Fair Trading showing that one in 20 people have been told that they would need to take a mortgage directly from the estate agent in order to secure a purchase.

Aaron Strutt, of Trinity Financial Group, told Times Money: "Buyers should not be fooled into thinking they have to take a deal when putting in an offer for a new home."

The average new mortgage for house purchases is £112,000.

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