A shock prediction from a property management firm suggests that around 10 estate agencies have gone bust every week in Britain during 2019.
Apropos by DJ Alexander has analysed official data and found that 371 businesses dedicated chiefly to the selling of homes have entered formal insolvency proceedings in the first nine months of the year.
This comprised 348 in England and Wales and 23 in Scotland.
Extrapolating that to the end of the year, Apropos calculates this would equate to 498 agencies going under.
Specifically within England and Wales this would mean an estimated 464 estate agencies entering insolvency which is the highest annual figure since 2014 when 522 real estate businesses went bust.
The Scottish figure is likely to be 30 for the year which, although it is almost double the 2018 figure of 17, is the second lowest annual number for the last decade indicating the sector is in reasonably good health in Scotland, claims Apropos.
“These figures highlight the impact that a declining High Street coupled with a changing marketplace is having on the traditional estate agency sector” claims David Alexander, managing director of Apropos by DJ Alexander.
“The specific issue for the estate agency sector is how to remain relevant in a market that is shifting relentlessly online. Ensuring you offer an appropriate and vital service to your clients is now not just important it is essential” he adds.
“Most people working in the sector understand the need for an excellent online offering coupled with outstanding personal service. The days when estate agents had an office on every High Street have gone but the need for personal service remains high. Clients still want the meet and greet personal experience but backed up by a powerful, innovative online platform available 24 hours a day to answer their questions and meet their immediate needs.”
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The 2 biggest concerns for the agent is how to differentiate themselves from their competition, coupled with the ridiculous time it takes to get paid for sales. This is due in no small part to the transaction time in sales taking what seems like forever. Gazeal are tackling these problems by offering agents the opportunity to receive their commission weeks if not months before completion.
Lack of agencies understanding their DNA and ultimately their audience to target. I agree that the time process should increase in getting the property sold and the agent earning their worth. Its crazy that we can work on something for months and at no fault of the agent, fall apart and to not be paid for the time/effort.
It's about understanding the digital transformation the whole world has and is currently going through at the moment. Some agents have started to adapt to the way the world works now in marketing and customer experience, the more they develop this, the more they will take business from agents still stuck in the 1990's in how they obtain new business. We're in an era of data and agents need to understand how to use it to its full potential.
As with most industries, the strong survive and the weak perish. Good for Estate Agency and good for the public.
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