Table of Contents
Executive Summary
-
- Impact of COVID-19 on estate agents
-
- Figure 1: Short, medium and long-term impact of COVID-19 on estate agents, 6 November 2020
- The market
- Market size and forecast
-
- Figure 2: Market size and forecast for the UK estate agents market, 2015-25
- Market segmentation
-
- Figure 3: UK estate agents property value, by segment, 2016-20
- Companies and brands
- The consumer
- Impact of COVID-19 on property plans
-
- Figure 4: Effects of COVID-19 on property market participation, September 2020, (% of respondents)
- Market participation
-
- Figure 5: Involvement in the property market, September 2020, (% of respondents)
- Attitudes towards estate agents
-
- Figure 6: Method of property sale, September 2020, (% of respondents)
- Stamp Duty changes
-
- Figure 7: Awareness of Stamp Duty Tax changes, September 2020, (% of respondents)
Issues and Insights
-
- Tighter credit conditions could hold back transactions in the medium term
- Digital home tours could address COVID-19 concerns while improving marketability
The Market – Key Takeaways
-
- Government COVID-19 support for the economy has stabilising impact and will be critical to recovery in the short term
- Residential market is anticipated to continue growth while retail sector difficulties hold back commercial property
- Government support will promote price stability while demand for larger properties will drive transactions
- Rising prices are slowing entry into the property market and increasing the number of renters nationally
Market Size
-
-
- Figure 8: Short, medium and long-term impact of COVID-19 on estate agents, 6 November 2020
-
- Figure 9: UK estate agents market value, 2016-20
- Figure 10: UK residential and non-residential property transactions, 2015-19, (thousands of transactions)
-
Market Segmentation
-
- Commercial property value set to decline as demand for office and retail is hit by COVID-19
- Residential property market
- Commercial property market
-
- Figure 11: UK estate agents property value, by segment, 2016-20, (£ billion)
- Residential rental market
-
- Figure 12: Dwelling stock, by tenure, England, 2010-19, (% of all dwellings)
Market Forecast
-
- Policy support will be critical to the property market’s medium-term health
-
- Figure 13: UK estate agents market value forecast, 2020-25, (£ billion)
- Figure 14: UK residential property transactions forecast, 2020-24, (thousands of transactions)
- Commercial property market forecast
-
- Figure 15: UK commercial property capital value forecast, 2019-24, (£ billion)
Market Trends
-
- Trends in the housing market
-
- Figure 16: UK residential homes sales volume, all property types, October 2016 -July 2020, (number of sales)
-
- Figure 17: UK average house price, all property types, October 2016-July 2020, (average property price, £)
- Future buyers will favour larger properties able to accommodate homeworking
-
- Figure 18: Help to Buy legal completions, by property type, Q2 2013-Q1 2020, (number)
- Figure 19: Change in annual registrations, by house type, 2010 to 2019, (% change)
- Growth of homeworking will draw demand in areas that are home to high-value service sector roles
-
- Figure 20: Proportion of employees working at home, by region, April 2020, (% of employees)
- Figure 21: Proportion of employees working at home, by occupation group, April 2020, (% of employees)
Market Drivers
-
- Affordability issues are a key driver of rising private rental tenures
-
- Figure 22: Ratio of median* house price to median gross annual household earnings, by country and region, 2002-19
- Figure 23: Average house price – England, by region, 2008-20*, (average house price)
-
- Figure 24: Change in proportion of households with an HRP, by age, 2006/7 to 2018/19, segmented by age, (% change in proportion)2006/07-2018/19
- Savings available through Stamp Duty Tax changes are raising market participation
Companies and Brands – Key Takeaways
-
- Number of outlets decreases as consolidation becomes an attractive strategy
- Worsening market conditions prove impactful for turnover growth
Industry Structure
-
- Changes in industry structure
-
- Figure 25: Analysis of changes in ‘real estate agencies’ activities, 2015-19, (number of outlets and businesses)2016-20
- Changes in employment structure
-
- Figure 26: Analysis of the employment structure of ‘real estate agencies’ activities, 2018 and 2019, (number of outlets)
- Changes in turnover structure
-
- Figure 27: Analysis of the turnover structure of ‘real estate agencies’ activities, 2018 and 2019, (£’000, number of businesses)
Company Profiles
-
- Connells Group
- Recent company activity
- Financial information
-
- Figure 28: Financial analysis of Connells Limited, 2016-20, (£ million and % annual change)
- Countrywide
- Recent company activity
- Financial information
-
- Figure 29: Financial analysis of Countrywide Group plc, 2015-19, (£ million and % annual change)
- Foxtons
- Recent company activity
- Financial information
-
- Figure 30: Financial analysis of Foxtons Limited, 2016-20, (£ million and % annual change)
- Purplebricks
- Recent company activity
- Financial information
-
- Figure 31: Financial analysis of Purplebricks Group plc, 2016-20, (£ million and % annual change)
- Rightmove
- Recent company activity
- Financial information
-
- Figure 32: Financial analysis of Rightmove plc, 2015-19, (£ million and % annual change)
- Zoopla
- Recent company activity
- Financial information
-
- Figure 33: Financial analysis of Zoopla Limited, 2015-19, (£ million and % annual change)
The Consumer – Key Takeaways
-
- The pandemic is driving engagement through online channels but property sites are accruing most of the benefit
- COVID-related uncertainty is suppressing future activity but Stamp Duty changes will help offset negative sentiments
Impact of COVID-19 on Property Plans
-
- Sellers’ concerns about COVID-19 exposure reflect the economic and wellbeing uncertainty it has generated
- Security of tenure correlates negatively with desire to move
-
- Figure 34: Effects of COVID-19 on property market participation, September 2020, (% of respondents)
Participation in the Property Market
-
- Participation impacted by first lockdown and ongoing distancing measures
-
- Figure 35: Involvement in the property market, September 2020, (% of respondents)
- Online search grows as the pandemic makes more agencies reliant on major property platforms
-
- Figure 36: Method of property search, September 2020, (% of respondents)
Attitudes towards Estate Agents
-
- Online agencies appear less popular despite competitive fees becoming a leading influence
-
- Figure 37: Method of property sale, September 2020, (% of respondents)
-
- Figure 38: Reasons for choosing estate agent, September 2020, (% of respondents)
-
- Figure 39: Attitudes towards online-only agents and agency fees, September 2020, (% of respondents)
Likelihood of Future Activity
-
- COVID-19-related uncertainty likely to reduce future engagement
-
- Figure 40: Likelihood of future property sale, September 2020, (% of respondents)
-
- Figure 41: Involvement in the property market, September 2020, (% of respondents)
Reaction to Stamp Duty Changes
-
- Stamp Duty changes prove to be an effective incentive for prospective buyers
-
- Figure 42: Awareness of Stamp Duty Tax changes, September 2020, (% of respondents)
-
- Figure 43: Effects of Stamp Duty changes on future property market participation, September 2020, (% of respondents)
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
Further Sources and Contacts
-
- Trade associations
- Trade magazines
- Trade events
Back to top