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Why We Don’t Pay Referral Fees – and Why That’s Good News for You

Paul Rossiter
Posted by: Paul Rossiter Managing Director

Why Referral Fees in Conveyancing are Under Scrutiny

A recent BBC Panorama investigation has cast a much-needed spotlight on the murky world of referral fees in the conveyancing sector. The programme alleged that some of the UK’s leading estate agents have been pressuring their staff to steer clients toward specific conveyancing firms, not based on quality or cost, but because of financial arrangements behind the scenes.

In one striking example, first-time buyers were reportedly charged £2,820 for conveyancing services, almost three times more than the lowest available quote. It’s a situation that raises uncomfortable questions about transparency, fairness, and whether consumers are truly being served in their best interests.

At PSR Solicitors, we welcome the scrutiny. It confirms what we've always believed: that transparency, independence, and client choice should never be compromised for profit. That’s why we have a firm and longstanding policy, we do not pay referral fees and never have.

 

What the Panorama Investigation Revealed

The Panorama episode uncovered allegations that some estate agents were pushing certain conveyancers in exchange for referral payments. Rather than giving buyers the freedom to shop around for a solicitor who suited their needs and budget, staff were incentivised to recommend firms based on internal business arrangements.

This approach not only risks distorting the cost of legal services but can also significantly inflate fees for the consumer. Worse still, it compromises trust at a time when buyers are relying on estate agents and legal professionals to act in their best interests during what is often the most significant financial transaction of their lives.

Regulatory Concerns and Action

The Council for Licensed Conveyancers (CLC) responded to the BBC investigation by raising serious concerns about conditional selling, where one service is made conditional on another and the questionable sales tactics adopted by some estate agencies.

According to the CLC, such practices limit genuine consumer choice, mislead buyers on pricing, and pose a risk to the integrity of the conveyancing process. In response, the CLC has announced a thematic review of referral arrangements to begin in early 2026. This review will explore the prevalence, value, and transparency of referral fees and ensure firms are compliant with CLC transparency rules.

The Legal Framework – and Where PSR Stands Apart

It’s worth noting that referral fees are not illegal. Regulators such as the CLC and the Solicitors Regulation Authority (SRA) do allow them but with strict conditions. For example:

  • The CLC Code of Conduct requires firms to treat clients fairly, understand their specific needs, keep client money safe, and always act in the client's best interests.
  • The SRA rules mandate that clients must be informed of any fee-sharing arrangements or referral fees being paid.

But here’s the problem: even with these safeguards, the reality on the ground, as highlighted by the BBC, shows that some consumers are still left paying more, often without fully understanding why.

That’s why PSR Solicitors goes one step further.

Why PSR Solicitors Does Not Pay Referral Fees

Our stance is simple: your trust matters more than any commercial arrangement. Here’s what that means in practice.

We believe every client should be free to choose their own solicitor without influence, coercion, or hidden agendas. When you come to PSR Solicitors, you can rest assured that no estate agent is profiting from sending you our way.

Because we don’t pay referral fees, we don’t build commission costs into our pricing. This means you only pay for the service we provide, nothing more, nothing less. It’s fair, it’s clear, and it keeps your costs down.

Everything we do is centred on acting in your best interests. We give advice that is impartial and based solely on your needs, not on whether someone sent you to us for a commission.

What This Means for You

In an industry where some practices are still under scrutiny, we’re proud to take a different approach. We know that buying or selling a home is a major milestone and often, a stressful one. Our job is to provide reassurance, clarity, and professional support, not to be part of a referral chain with conflicting incentives.

By choosing PSR Solicitors, you’re choosing a firm that values independence, integrity, and transparency. It’s a decision that not only protects your wallet but ensures your legal matters are handled by people who genuinely care about doing the right thing.

Need Conveyancing Advice You Can Trust?

With offices across North Wales and the North West, PSR Solicitors is here to provide honest, expert legal guidance for your property transaction. We don’t pay referral fees, so you know our relationship is with you, and only you.

Call us today on the number at the top of the page or complete the enquiry form, for a no-obligation conversation with one of our friendly conveyancing solicitors.

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