X

About

Advertise

Contact

Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Search
Close

About

Advertise

Contact

Jobs

Tools for Advisers

Untitled-1
Linkedin
Twitter
Facebook-f
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Menu
  • News
    • In the Press
    • Politics and Finance
  • Featured
    • Podcasts & Films
    • Interviews
    • Events
    • Finance on Social Media
    • Jobs
    • MPS Report
  • GBI
    • Tax Efficient Investments
    • Open Investment Opportunities
    • People Behind the Product
    • GBI Magazine Issues
    • About GBI
  • Business
    • Regulation and Compliance
  • Magazines
  • The M&G Adviser Hub
Untitled-1
Linkedin
Twitter
Facebook-f

Is it game over for online estate agents?

 Pandemic uncertainty could be the final nail in the sector's coffin..

by Alex Sullivan
May 6, 2020
in Featured, News
Share this story
Is it game over for online estate agents?
Share this story

The latest data on current and historic listings by online agents suggests the sector could be in serious trouble, despite their potential ability to better traverse the problematic landscape caused by the current pandemic when compared to bricks and mortar agents.

GetAgent.co.uk has been tracking the real-time health of the UK property market as a whole via its interactive dashboard, along with a market sentiment survey of both agents and home sellers and buyers; the latest of which is due for release this week.

The data shows that the estate agency profession is having it tough right now with no listing appointments permitted, no viewings and few completions unless they are subject to ‘specific unavoidable’ circumstances. Revenue has all but dried up and most agency staff have been furloughed.

But, amidst this downturn, there is one segment of the industry that is having it even worse and that’s ‘online estate agents’.

Latest market data suggests that: –

PurpleBricks’ new monthly listings, as the flag bearer in the online agency space, peaked way back in April 2018 at 6,358 in that month.

Since then, their new listings rate has declined to a pre-Corona average of 4,400 per month (January and February 2020 avg). Importantly, in overall market share terms, PB’s share versus the entire estate agency sector has dropped from a peak of 4.25% in August 2019 to just 3.45% now.

What does that also mean for revenues? The drop in listings for which PurpleBricks earn an average £1,100 means that they are on course for a comparable reduction in calendar year on year revenue of c.£7.8m per annum (or 11%) when they next report (total 2018 listings of 65,279 vs total 2019 listings of 58,162 x £1100).

But the real focus will be on current listings performance which has simply got worse even before factoring in the decline in new business as a consequence of the lockdown.

At just 4,400 listings per month now (vs a 2019 monthly avg 4846), this is a further dilution in revenue of an annualised £6m. CEO Vic Darvey’s quest for 10% market share is, in reality, experiencing a significant backward step.

Total market share for all online estate agents has dropped from a peak of 6.35% in September 2018 to just 4.8% now (February 20).

Total listings ’lost’ by online estate agents in 2019 compared to 2018 was 17,286.

YOPA – listings are down 21% year on year and their market share is down from 0.65% to 0.61%

HouseSimple – listings are UP 156% year on year and their market share is up to 0.61% from 0.21%. However, this increase is at the expense of actual revenue given that they became a free service in 2019.

The online estate agency sector has raised approximately £300m in equity funding to date from the likes of Neil Woodford, Charles Dunstone, ToscaFund, Savills, the Daily Mail General Trust Group and the Barclay brothers. Many could be forgiven for thinking, what for?

Founder and CEO of GetAgent.co.uk, Colby Short, commented:

“Estate agency as a whole has never been short of its critics but this criticism certainly seems to have shifted towards online and hybrid agents over the last few years.

This is always going to happen as an industry evolves and there is no doubting that the online model provides a very cost-effective method of transacting when compared to the traditional agent.

However, this more DIY approach to selling does have its pitfalls. Many customers feel as though they’ve been left a little high and dry when it comes to the completion of a sale and that they didn’t achieve the price they would have otherwise.

This seems to have had a knock-on effect on the popularity of online agents with even the industry leader, Purplebricks, seeing a steady decline in business.

With yet more uncertainty now shrouding the market, it’s likely that many home sellers will value the professionalism, service and accountability that comes with a traditional agent and the online market share will continue to suffer as a result.”

Previous Post

Data-driven workforce management software firm attracts £6m new investment

Previous Post

Germany Threatens to Halt Euro-Bond Scheme

Previous Post

GB Investments and EISA present the Advocate Webinar Series

Next Post

UKSIF Webinar Presentation: Environmental, Social and Corporate Governance (ESG)

Next Post

How Will Rishi Sunak Roll Back Furlough Scheme?

Next Post

FCA secures orders for victims of unauthorised share scheme

Related Posts

‘A very difficult March for all participants in the housing market,’ says Ray Boulger
News

The real and ongoing ramifications of the global pandemic

January 28, 2021
pension
News

Intra-day pensions transfers increase in 2020

January 28, 2021
Save the dates and register now
Events

Save the dates and register now

January 27, 2021
Gamestonk: Memes and market movement
Finance on Social Media

Gamestonk: Memes and market movement

January 27, 2021
IFA Magazine News red
News

PIMFA: little regulators can do to stop fraud without action from Government 

January 27, 2021
EQ Investors announces appointment of Victoria Hasler as Head of Fund Research
News

EQ Investors announces appointment of Victoria Hasler as Head of Fund Research

January 27, 2021
Next Post
UKSIF Webinar Presentation: Environmental, Social and Corporate Governance (ESG)

UKSIF Webinar Presentation: Environmental, Social and Corporate Governance (ESG)

How Will Rishi Sunak Roll Back Furlough Scheme?

FCA acts to help customers get better rates for cash savings

FCA secures orders for victims of unauthorised share scheme

Podcasts & Films

  • HAATCH Celebrating Entrepreneurs – Episode 2
    January 26, 2021
  • Put an atomic clock in your car, phone and on your wrist
    January 13, 2021
  • The Nexus Scale-Up Fund walk through
    December 21, 2020
  • Net4 x ARIE Capital webinar, hosted by CoInvestor
    December 18, 2020
  • How does Nexus Communicate with clients?
    December 18, 2020
  • Nexus Investments – Reasons for Advisers to be positive in 2021
    December 17, 2020

Today’s Most Read

  • Columbia Threadneedle appoints Michaela Collet Jackson as head of distribution
    January 21, 2021

    Columbia Threadneedle Investments, a leading global asset management group, announces the appointment of Michaela Collet Jackson as Head of Distribution EMEA. In this role, Michaela

  • EIS – looking to the future
    January 21, 2021

    EIS has been part of an adviser’s tax efficient tool kit for the last 26 years and now, more than £2 billion is invested annually

  • Square Mile’s 3D investing: new ratings and certifications in Q4  
    January 22, 2021

    Six funds awarded AAA 3D Impact ratings  Four funds awarded AA 3D Impact ratings  Three 3D Fund Certifications  3D Investing, Square Mile’s subsidiary dedicated to

  • Baillie Gifford Multi Asset Income Fund selected by Hargreaves Lansdown as investment pathways solution
    January 27, 2021

    The £82m Baillie Gifford Multi Asset Income Fund has been chosen by Hargreaves Lansdown as an ‘investment pathways’ solution for investors seeking non-advised drawdown. Investment

  • Gamestonk: Memes and market movement
    January 27, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. There is one dominant finance story on Twitter today, and it surrounds the meteoric rise of Gamestop

  • Portfolio of BB Biotech AG as of December 31, 2020
    January 22, 2021

    Vaccines leading the way out of the pandemic – increased dividend of CHF 3.60 proposed BB Biotech performed well in 2020 in a volatile market

  • Retail investors pump the US stock market
    January 26, 2021

    @peter_IFAMAG reads Twitter so you don’t have to. Retail investors using internet site Reddit helped pump the price of Game Stop shares last night, leading

  • Ethical and sustainable funds among best performers in 2021 FE fundinfo Crown Ratings
    January 25, 2021

    In a year where ESG investing has hit the mainstream, ethical and sustainable funds have been among the best performers in the latest rebalance of

  • Are we in a bubble?
    January 27, 2021

    William Ryder , Equity Analyst at Hargreaves Lansdown examines market valuations “Veteran investor Jeremy Grantham at GMO recently published a widely circulated research article arguing that the

  • IPO and SPAC mania: what could possibly go wrong?
    January 25, 2021

    As investors throw money at IPOs and SPACs, Steve Russell, co-manager of the Ruffer Total Return Fund, says the promise of untold future profits should

More Articles

Blackfinch Ventures: In the spotlight
Interviews

Blackfinch Ventures: In the spotlight

January 7, 2021
Making a positive difference at the cutting edge
Interviews

Making a positive difference at the cutting edge

January 7, 2021
Meet the manager of the M&G Global Listed Infrastructure Fund
Interviews

Meet the manager of the M&G Global Listed Infrastructure Fund

December 15, 2020
Par Equity is the bright EIS star of the North 
Interviews

Par Equity is the bright EIS star of the North 

November 23, 2020
What’s next for Mercia?
Interviews

What’s next for Mercia?

November 2, 2020
M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell
Interviews

M&G Positive Impact Fund: Q&A with Ben Constable-Maxwell

October 21, 2020
People Behind the Product: Pippa Gawley, Zero Carbon Capital
GBI

People Behind the Product: Pippa Gawley, Zero Carbon Capital

October 7, 2020
People Behind the Product: Matthew Steiner, Stellar Asset Management
GBI

People Behind the Product: Matthew Steiner, Stellar Asset Management

October 6, 2020
People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners
GBI

People Behind the Product: Ewan Lloyd-Baker, Seismic Venture Partners

October 5, 2020

About Us

​IFA Magazine – for today’s discerning financial and investment professional.

Published ten times a year, IFA Magazine has been winning a keen and enthusiastic following among Britain’s premier financial advisers, planners and paraplanners.

Newsletter

    Follow Us

    Linkedin
    Twitter
    Facebook-f

    © 2021 All rights reserved​ to IFA Magazine | Website by: Nivo Digital | Terms and Conditions

    Do NOT follow this link or you will be banned from the site!

    Adblock Blocker

    We have detected that you are using

    adblocking plugin in your browser. 

    Keep updated on the most important financial events 

    Make sure you are an informed

    wealth professional..

    IFA Magazine
    • News
      • In the Press
      • Politics and Finance
    • Featured
      • Podcasts & Films
      • Interviews
      • Events
      • Finance on Social Media
      • Jobs
      • MPS Report
    • GBI
      • Tax Efficient Investments
      • Open Investment Opportunities
      • People Behind the Product
      • GBI Magazine Issues
      • About GBI
    • Business
      • Regulation and Compliance
    • Magazines
    • The M&G Adviser Hub