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@othemarketblog number of high street estate agents going bust up 16% , online estate agents market share up dictated by consumer not industry



trouble in the highstreet


The number of estate agents going bust has increased, with a 16 per cent rise in annual insolvencies.

Figures from Moore Stephens,  a top ten accounting and advisory network, with offices throughout the UK and members across the globe, reveal that the sector was the only industry in which the trend for fewer insolvencies was bucked last year, with 185 businesses going bust, after 160 did so in 2014. 


The rate of insolvencies nationally across all industry sectors declined by 9 per cent, from 16,558 to 15,027
Three notable insolvency sectors, within property [ringed in red] retail ,construction and real estate.



Bob Scarff [pictured above]former Country Wide plc chief, recently criticised the concentration on ‘retail’ activities by Countrywide - recently describing it as “preposterous”. A complete contrast to comments made Alison Platt the Chief Executive of Countrywide plc, bringing estate agency business into what she calls a more 'retail-focussed' exercise.

Online Drift 
It's not just seasoned professionals, like Bob Scraff, Head of retail at respected Global Auditor KPMG has also said  "The ease of signing in rather than walking in, combined with increasingly smooth running of logistics and fulfillment networks, is also good news for the consumer but the retailers will have to reconsider the role of the store and the store associate if they wish to reverse the drift to the online channel.”[4]

National retail super market chain Morrison's (also found on the high street by the consumer) recent partnership with online shopping giant Amazon. The deal between the two consumer giants ,was noted by Emoov CEO Russel Quirk, who questioned whether the penny had now finally dropped, for high street estate agents.   

Mean while market share within the full service fixed fee, hybrid online estate industry is growing.

Eurostat data ,has also shown that consumer habits and buyer behavior ,make the UK the capital of Europe for online purchasing power

The funeral is still some way off. At the moment, only 5.5 per cent of UK house sales are carried out through the new, ultra-cheap, online estate agents. But that has risen from practically zero a decade ago. By 2018, the figure is expected to rise to 50 per cent, and to as much as 70 per cent by 2020[1].

easyProperty.com

As experts in competitive intelligence, we predict that the changes we’re going to see will become much larger than simply a shift from physical estate agents to online

With the introduction of online-only estate agents that manage the whole process and to the benefit of the seller, reduce the fees involved in selling a property substantially.








online purplebricks.com now has higher search traffic, than Knight Frank , global high street estate agent,  Emoov is also showing, commendable in roads. 





Research from online estate agent eMoov has revealed that London High Street estate agents took £860 million in fees in 2015. Which hardly affords public sympathy , when everyday hard working people, find out Kensington and Chelsea estate agents taking home more than the average UK salary from the average sale.[3]

Even the most recognisable face, of the high street estate agent ,over the last decade and half ,is being taken to court, in a land mark case by a group landlords. The case revolves around  Foxtons allegedly    hiding commission rates ,on contractors' work, this at a time when their annual profits have shown decline from the previous year.



This is good news for mortgage lenders and the construction industry. The Government has given it's approval of the online estate business model , to further economic stimulus.

Even though figures confirm the trend in high street agents going bust,many high street agents are opening in the capital hoping to re ride the coat tails of the last 2014 -15 propertyboom. Housesimple.com  recent research showed London is over crowded with high street estate agents.

Finally the biggest increase in insolvency came from construction , data shows and comments from the government allegedly imply ,that some of the major national house builders are perfectly positioned, to profit under favorable conditions such as this, which only compound the housing crisis further. The final report released by the housing commission into London housing problem ,received cross party support , with a general consensus ,more houses must be built.  Paradoxically when affordable housing is built, first dibs are given to the overseas buyers!.


online rise  > i am the agent 



[1]How the internet can – and should – destroy estate agents spectator Harry Mount The Spectator 28 June 2014 
[2]We Predict a Boom in Online Estate Agents’ PPC Spend in 2015. The Battle Is On!
[3] Estate agents made £860m out of London's property boom in 2015
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