Table of Contents
Executive Summary
-
- The market
- Brexit-induced slowdown continues
-
- Figure 1: UK estate agents market value and forecast, 2014-24
-
- Figure 2: UK three-month rolling average of residential home sales volume, all types of property, December 2015 – June 2019
- Companies and brands
- Uncertainty is limiting expansion of the market
- Regional diversity is vital to escaping Brexit pressures
- The consumer
- Participation in the property market
-
- Figure 3: Method of property search, September 2019
- Attitudes towards estate agents
-
- Figure 4: Factors underlying choice of estate agents for residential property sale, September 2019
- Online versus high street estate agents
-
- Figure 5: Attitudes towards high street and online-only estate agents, September 2019
- Attitudes towards property types
-
- Figure 6: Property type preferences for next home, September 2019
- What we think
Issues and Insights
-
- Growth of private rentals
- The facts
- The implications
- Both residential and commercial estate agents sector stifled by Brexit
- The facts
- The implications
The Market – What You Need to Know
-
- Brexit uncertainty has been the primary driver of poor performance
- Residential and commercial segments both affected by lower activity
- Foreign investment boosted by weak pound and lack of alternative investments
Market Size
-
- Effects of Brexit uncertainty remain a major hindrance to the market
-
- Figure 7: UK estate agents market value, 2015-19
Market Segmentation
-
- Slow activity leaves residential and commercial segments in stasis
-
- Figure 8: UK estate agents market segmentation, 2015-19
- Lettings
-
- Figure 9: Dwelling stock by tenure, Great Britain, 2008-17
Market Forecast
-
- Market set to recover from stagnation as uncertainty is lifted
-
- Figure 10: UK estate agents market value forecast, 2019-24
- Residential sector
-
- Figure 11: UK residential property transactions forecast, 2020-23
- Commercial segment aided by Brexit but still faces structural pressures
Market Trends
-
- Activity has been subdued by Brexit-related uncertainty
-
- Figure 12: Annual change in UK average house price, all property types, November 2015 – August 2019
- Figure 13: UK three-month rolling average of residential home sales volume, all types of property, December 2015 – June 2019
- Affordability issues hint at volume-driven future for residential sector
- Slowdown in commercial segment tempered by increase in foreign investment
-
- Figure 14: UK annual non-residential property transactions, 2005/6 - 2018/19
Market Drivers
-
- The residential property market is being shaped by affordability concerns
-
- Figure 15: Percentages of families (singles or couples) owning their own home in the UK, by age group, May 2000-17
-
- Figure 16: Ratio of median house price to median gross annual (where available) residence-based earnings by country and region, England and Wales, 2002 to 2018
- Shifts in consumer habits demand shifts in investment
-
- Figure 17: UK business investment excluding exceptional transfers, chained volume measurement, seasonally adjusted Q1 2016 – Q2 2019
Companies and Brands – What You Need to Know
-
- Market entry remains subdued by Brexit uncertainty
- Regional diversity and digital channels have helped weather Brexit
Industry Structure
-
- Changes in industry structure
-
- Figure 18: Analysis of real estate agencies’ industry structure, number of outlets and businesses, 2015-19
- Structure by employment
-
- Figure 19: Analysis of real estate agencies’ employment structure, 2018-19
- Structure by turnover
-
- Figure 20: Analysis of the financial structure of real estate agencies, turnover bands and the number of businesses, 2018 and 2019
Company Profiles
-
- Connells Ltd
- Recent company activity
- Financial information
-
- Figure 21: Financial analysis of Connells Group, 2014-18
- Countrywide Plc
- Recent company activity
- Financial information
-
- Figure 22: Financial analysis of Countrywide Plc, 2014-18
- Foxtons Ltd
- Recent company activity
- Financial information
-
- Figure 23: Financial analysis of Foxtons Ltd, 2014-18
- Purplebricks Group Plc
- Recent company activity
- Financial information
-
- Figure 24: Financial analysis of Purplebricks Group, 2015-19
- Rightmove Plc
- Recent company activity
- Financial information
-
- Figure 25: Financial analysis of Rightmove, 2014-18
- Zoopla Ltd
- Recent company activity
- Financial information
-
- Figure 26: Financial analysis of Zoopla Ltd, 2014-18
The Consumer – What You Need to Know
-
- Popularity of online property search opens the path to hybrid agencies
- Online-only estate agents should leverage their flexibility to increase market presence
- New builds are an attractive option for many despite their premium
- Brexit’s effect on the property market pulls in both directions
Participation in the Property Market
-
- Vast majority of existing home owners staying put
-
- Figure 27: Involvement in the property market, September 2019
- Online is the most popular method of property search
-
- Figure 28: Method of property search, September 2019
Attitudes towards Estate Agents
-
- Property sellers still prefer the high street
-
- Figure 29: Method of property sale, September 2019
-
- Figure 30: Factors underlying choice of estate agents for residential property sale, September 2019
Online versus High Street Estate Agents
-
- Online-only agencies have paved the way for effective segmentation of agency services
-
- Figure 31: Attitudes towards high street and online-only estate agents, September 2019
-
- Figure 32: Attitudes towards online-only agents and agency fees, September 2019
- Clear advertising is fundamental to online agents’ future growth
Likelihood of Future Activity
-
- Over half of respondents are unlikely to participate in the property market in the next 18 months
-
- Figure 33: Future property sale involvement, % of respondents, September 2019
-
- Figure 34: Future property sale involvement, % of respondents, September 2019
- Current homeowners are being pinched on both sides by Brexit
-
- Figure 35: Effect of Brexit uncertainty on property market involvement, September 2019
- More than a third of consumers think any form of Brexit would be damaging for the housing market
-
- Figure 36: Opinions on the effect of Brexit on the housing market, September 2019
Attitudes towards Property Types
-
- Previously-owned homes present better value but new builds are still popular with respondents
-
- Figure 37: Property type preferences for next home, September 2019
-
- Figure 38: Opinion on the value of different property types, September 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
- Consumer research methodology
Further Sources and Contacts
-
- Trade associations
- Trade magazines
- Trade events
Back to top