In July 2025, BBC Panorama aired an investigation into the use of referral fees and ‘conditional selling’ by estate agents, entitled “Undercover Estate Agents”. It looked at how some buyers are being pressured into using in-house mortgage brokers and conveyancing services, sometimes without being made fully aware of the underlying reasons and options available. The investigation has now prompted renewed scrutiny of referral arrangements and triggered a thematic review of referral fees by the Council for Licensed Conveyancers (CLC), due to begin in early 2026.
What Did The BBC Panorama Investigation Reveal?
The BBC’s Panorama investigation alleged that some of the UK’s largest estate agency chains were actively steering buyers towards affiliated conveyancers and financial services. Undercover footage suggested that estate agents were, at times, withholding viewing opportunities and delaying progress if buyers did not opt for recommended service providers.
In one example, an estate agent stood to make £10,000 in total by arranging add-on referral services in addition to selling the buyer’s property. The investigation also looked at the practice of “conditional selling”, whereby an estate agent suggests, implies or tells the client that they must arrange mortgages and conveyancing services through in-house teams to avoid negative consequences for their transaction (e.g. delays).
The investigation raised questions about whether referral fees were being disclosed transparently and whether clients were given genuine freedom to choose their own solicitor or conveyancer.
CLC Thematic Review
Following the broadcast, the CLC announced a thematic review of referral fee arrangements. On 16th July, the CLC published a statement explaining:
“The Panorama programme highlighted serious concerns about conditional selling and the questionable sales tactics of certain estate agencies, which may impact the conveyancing sector by limiting consumer choice of legal advisor”.
The statement also clarified that the CLC is not aware of unethical practices, but it is carrying out the review into referral practices “in the interests of ensuring genuine consumer choice”.
The review, which will start in early 2026, will examine the extent, financial scale, and transparency of referral agreements between conveyancing firms and introducers such as estate agents.
What Does This Mean For Conveyancers?
The upcoming review serves as a reminder of the importance of fully complying with the CLC and SRA rules on transparency and informed choice rules. It is important to ensure that referral arrangements between conveyancers (or legal firms providing conveyancing services) and estate agents are properly structured and communicated in a way that prioritises the client’s interests and preserves their right to choose freely.
Firms should now proactively review any existing referral agreements. Questions to ask include: Are clients clearly informed of any referral fee paid or received? Is the information given in writing and at the right time? Are clients reminded that they are free to choose their own conveyancer?
The CLC has also emphasised the need for firms to look at their practices proactively rather than waiting for the review to be completed and published:
“Ahead of the review, we strongly encourage all CLC practices, and particularly those that have paid referral arrangements, to review their compliance with the CLC’s transparency and informed choice rules. We encourage any practices that are not fully compliant currently to take appropriate steps to ensure their compliance before the review commences.”
Final Words
The CLC’s upcoming referral fee review may lead to a shift towards greater regulatory oversight in this area. While no immediate rule changes have been announced, the message is clear: firms must place transparency and the client’s best interest at the heart of all referral relationships.
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