Independent conveyancing solicitors are in danger of being squeezed out of the market by the anti-competitive practices of some estate agents, practitioners have reported.


Law Society Vice-President Paul Marsh said solicitors around the country had complained of losing clients because estate agents were insisting that their own panel solicitor and home information pack (HIP) provider must be used - or they would refuse to market the property.



Some estate agents have also charged clients a surcharge to 'verify' a HIP that was not compiled by their own provider, Mr Marsh revealed.



'Where these are large estate agents and sellers want to maximise exposure of their property, their choice of HIP provider is being frustrated because estate agents are receiving payments from other HIP providers,' Mr Marsh said.



'If estate agents are skewing the market for their own advantage, it's contrary to the basic principles of competition law,' he added.



Mr Marsh said the Law Society was carrying out a thorough investigation into the alleged practice, before deciding on the most appropriate action.



Janet Davies, conveyancing partner at Greater Manchester firm Booth Ince & Knowles, said: 'This is a major problem and an unfair restraint of trade, which puts high-street conveyancers in danger of losing out in the conveyancing process.'



But Richard Barnett, senior partner at national firm Barnetts, said independent solicitors were doing well and the fear of this behaviour was perhaps greater than the reality.



Peter Bolton King, chief executive of the National Association of Estate Agents, said he had not received any complaints in relation to the practice and would 'look into it'.



Catherine Baksi