Some estate agents have joined MP Stella Creasy in condeming “unsavoury” fees imposed by some of their competitors to exploit increased demand for property in Walthamstow.
With house prices rising by 30 per cent in the last year, many estate agents have set up in the area to cash in demand.
But many are using so-called ‘sale by informal tender’ deals, which means successful bidders are charged up to two and a half per cent of the property value, plus VAT.
This can result in bidders lowering their offers to incorporate the extra charges, leading to sellers receiving less, while estate agents profit.
Ms Creasy called on estate agents to condemn the practice, which she describes as “ripping off” customers.
So far seven local agencies have publicly condemned it.
These are Outlook Residential Property Agents, Spencers Property, 21st Century Land, Central Estate Agents, Strettons, the Stow Brothers and Estates 17.
A spokesman for Estates 17 said: “We have never had any involvement with Sale By Informal Tender or Sealed Bids. Our aim is to work with the present and future local community, not against it.”
Central Estate Agents said it was “strongly against” the practice, while 21st Century Land called it “unsavoury”.
Ms Creasy said: “I urge potential home buyers and sellers in Walthamstow to ask the remaining estate agents operating in our area who have not yet responded to these concerns if they use such contracts, and if they do use them how they justify ripping off consumers in this way.
“I would also encourage residents to ask agents to pledge not to use these contracts. I will also continue to campaign for these contracts to be outlawed in Parliament too.”
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