Similar reports have revealed duplicitous practices at Connells, one of the largest estate agencies in the UK. These findings should sound alarm bells about their business model. Connells has over 1,200 branches under 80 different trading names. The company is under fire for a high-pressure work culture that compels employees to funnel mortgage deals in with property transactions. A whistleblower secretly filmed internal meetings within ULEZ for the BBC show Panorama. They exposed problematic practices at the agency that have the potential to deeply harm future homebuyers.
Connells’ senior branch manager indicated that a combined deal involving property sales and additional services could be worth up to £10,000 to the agency. This figure already includes just under £2,000 attributed to the mortgage itself. According to Consumer Reports, Connells aggressively helps clients set up mortgages. To achieve these goals, they incentivize their employees to wrangle price increases on homes, often listing homes at significantly higher price points than what the market supports. These strategies create ethical dilemmas around the agency’s duty to the people it serves.
Perhaps not surprisingly, pressure to close mortgage deals has purportedly been a growing point of focus for Connells workers. Staffers are reportedly pushed to enroll customers in home loans. They argue that obtaining the necessary financing is just as important now as marketing and selling properties. One Connells office administrator remarked, “That’s just how Connells are. That’s why they ride you if you don’t have enough mortgage appointments.”
Connell’s is unapologetic, insisting that “no harm was done” to customers in light of the recent disclosures. Despite their challenging service history, the company is committed to improving service after being purchased by new, promising owners in 2023. The agency boasts that it has cultivated a culture that puts the customer first.
By comparison freeholders such as Julie Gallagher have expressed dissatisfaction about their dealings with Connells. Gallagher feels her home was sold for far below its true value because of the agency’s moves. She stated, “I’m quite appalled really that… she [senior branch manager] has kind of taken options out of my hands and probably done me out of quite a bit of money, really.” Gallagher further expressed her frustration, saying, “How dare Connells do that? Just appalling.”
The whistleblower’s findings corroborate fears of a longstanding pattern of willful and reckless behavior. Such behavior would be illegal under the 1979 Estate Agents Act, which defines discriminating against prospective buyers who don’t go through in-house mortgage brokers as an “undesirable practice.” Further, Connells are a signatory to the Code of Practice for Residential Estate Agents, whose guidelines clearly outlaw “conditional selling.”
Industry experts have reacted with concern. Lisa Webb from Which? commented on the findings, stating, “That, in itself, is just appalling behaviour.” These practices are not only unethical. They highlight deeply worrying issues that go to the heart of the homebuying process in the UK.
The allegations against Connells are strikingly similar to what’s been seen industry-wide in the estate agency trade. A team leader from Purplebricks noted a similar urgency within their organization, saying, “The urgency is massive… there is still a heinous amount of money to be made.” This sentiment is symptomatic of a wider mentality amongst estate agencies that pushes for profit margins rather than ethical sales conduct.
Ryan Evans, a first-time buyer who found a home using Connells, recalled moments of being “overwhelmed” by the process. He remarked, “We were none the wiser having never done all this before. I certainly felt like maybe they [Purplebricks] had taken advantage of us a bit because we were first-time buyers.”
