Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Value of estate agents market continues to rise despite Brexit headwinds
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- Figure 1: Forecast of UK estate agents market value, £ million, 2014-23
- Residential and commercial sectors maintain momentum in 2018
- Companies and brands
- Online surge increases pressure on high street
- Slowed activity in London and the South East
- The consumer
- Online vs the high street
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- Figure 2: Means of searching for property, September 2018
- Cash may no longer be king
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- Figure 3: Factors underlying choice of estate agent in residential property sale, % of respondents, September 2018
- High street agents continue to be consumers’ preferred choice
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- Figure 4: Means of future sale, September 2018
- Personal service vs financial considerations
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- Figure 5: Attitudes toward estate agents, September 2018
- What we think
Issues and Insights
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- Undersupply of housing
- The facts
- The implications
- Brexit uncertainties
- The facts
- The implications
The Market – What You Need to Know
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- Market continues to grow despite uncertainty
- Residential and commercial sectors maintain momentum in 2018
- Lettings sector growth remains at forefront of the market
- Market forecast to sustain growth despite ongoing Brexit headwinds
Market Size
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- Value of estate agents market grows further amid difficult conditions
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- Figure 6: UK estate agents market value, £ million, 2014-18
Market Segmentation
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- Residential and commercial sectors maintain momentum in 2018
- Commercial estate agents further surpass expectation
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- Figure 7: Residential and commercial estate agents market value, £ million, 2014-18
- Lettings
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- Figure 8: Proportion of rented property, commercial and residential, % of total, 2007 and 2017
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- Figure 9: Dwelling stock, by tenure, Great Britain, 2007-16
Market Forecast
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- Market forecast to sustain growth despite ongoing Brexit headwinds
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- Figure 10: UK estate agents market forecast, £ million, 2019-23
- A new multi-tiered marketplace
- Residential forecasts
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- Figure 11: UK forecast residential transactions, million, 2018-22
- Commercial sector set to maintain stubborn growth
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- Figure 12: Market forecast for commercial property capital value, 2018-22
The Impact of the Economy
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- Interest rate rise
- Wage growth
- Steadying inflation
- Availability of credit in the commercial sphere
Market Trends
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- UK house pricing increases again
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- Figure 13: Average UK house price, £, August 2008-August 2018
- Residential property market remains flat
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- Figure 14: UK residential property transactions, Q1 2013-Q3 2018
- Retail continues to struggle
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- Figure 15: Owner occupied and invested commercial property value, % of total, 2013-17
- Commercial property transactions continue to fluctuate
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- Figure 16: UK non-residential property transactions, Q1 2013-Q3 2018
- House building grows further, but remains disparate to demand
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- Figure 17: UK housing construction output, £ million, Q1 2013-Q3 2018
Market Drivers
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- Regional breakdown in residential sector
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- Figure 18: Residential property sales by region, England and Wales, year ending March 2009-18
- The UK business landscape and appetite for commercial property
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- Figure 19: UK business investment, £ million, Q1 2015-Q2 2018
Companies and Brands – What You Need to Know
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- Online surge increasingly pressures high street
- Contrast of Countrywide and online operators, such as Purplebricks
Industry Structure
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- Changes in the structure of the industry
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- Figure 20: Analysis of the changes in the activities of real estate agencies, number of outlets and businesses, 2014-18
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- Figure 21: Analysis of the changes in the management of real estate on a fee or contract basis, number of outlets and businesses, 2014-18
- Structure by employment
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- Figure 22: Analysis of the employment structure of activities of real estate agencies, number of employees and outlets, 2017 and 2018
- Figure 23: Analysis of the employment structure of the management of real estate on a fee or contract basis, number of employees and outlets, 2017 and 2018
- Structure by turnover
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- Figure 24: Analysis of the financial structure of activities of real estate agencies, £'000 and number of businesses, 2017 and 2018
- Figure 25: Analysis of the financial structure of the management of real estate on a fee or contract basis, £'000 and number of businesses, 2017 & 2018
Competitive Strategies
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- Slowed activity in London and the South East
- Countrywide Plc decline
- Consolidation of online operators
Company Profiles
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- Connells Ltd
- Recent company activity
- Financial information
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- Figure 26: Financial analysis of Connells Ltd, £ million, 2013-17
- Countrywide Plc
- Recent company activity
- Financial information
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- Figure 27: Financial analysis of Countrywide Plc, £ million, 2013-17
- Foxtons Ltd
- Recent company activity
- Financial information
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- Figure 28: Financial analysis of Foxtons Ltd, £ million, 2013-17
- Purplebricks Group Plc
- Recent company activity
- Financial information
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- Figure 29: Financial analysis of Purplebricks Group Plc, £ million, 2014-18
- Rightmove Plc
- Recent company activity
- Financial information
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- Figure 30: Financial analysis of Rightmove Plc, £ million, 2013-17
- Zoopla
- Recent company activity
- Financial information
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- Figure 31: Financial analysis of Zoopla Property Group, £ million, 2013-17
The Consumer – What You Need to Know
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- Online vs the high street
- The high street needs to adapt to changing landscape
- High street agents continue to be consumers’ preferred choice
- Personal service vs financial considerations
Purchasing and Sales Activity
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- Majority remain uninvolved in property market
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- Figure 32: Involvement in property market, September 2018
Impacting Choice of Estate Agent
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- Local knowledge justifies a premium
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- Figure 33: Factors underlying choice of estate agent in residential property sale, % of respondents, September 2018
Searching for Properties
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- Online tightens grip on property purchase search
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- Figure 34: Means of searching for property, September 2018
Likelihood of Future Activity
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- Majority unlikely to enter property market in the next 18 months
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- Figure 35: Future sales involvement, September 2018
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- Figure 36: Future buying involvement, September 2018
Means of Future Property Sale
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- High street estate agents remain most popular means of sale
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- Figure 37: Means of future sale, September 2018
Attitudes towards Estate Agents
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- Personal service
- Financial consideration
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- Figure 38: Attitudes toward estate agents, September 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Association of International Property Professionals Ltd
- Association of Residential Letting Agents
- National Association of Estate Agents
- National Federation of Property Professionals
- Property Industry Alliance
- UK Association of Letting Agents
- Trade magazines
- Estate Agent Today
- Property Industry Eye
- Property Professional Magazine
- Trade events
- MIPIM UK – The UK Property Marketplace
- NAEA Propertymark National Conference
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