Online market share falls as sellers ‘seek traditional expertise’

The market share of online and hybrid agents for exchanges has fallen again during the third quarter.

Figures from property data firm TwentyCi show online market share, based on exchanges, declined from 6.4% to 6.1% between the second and third quarter of 2023.

This figure is continuing to trend lower since a high of 8.2% in 2019.

Purplebricks, Yopa and Strike continue to remain the dominant online brands, representing over 70% of all activity among online agents, TwentyCi said.

However, it said the growth of self-employed models typified by eXp is likely to have an impact within this category in the coming months.

Penetration across all property values continues to fall with the price bracket of £200,000-£350,000 experiencing the biggest drop of 7%.

The regional presence of online agents has also dropped across the board, falling by as much as 11.3% during the quarter in the North East of England.

It comes as all types of agents are under pressure but TwentyCi said it expected online models to perform better in the current economic climate.

TwentyCi said: “With the slowing of the residential property market, one would have anticipated that the cost-of-living challenges would encourage sellers to seek out the lowest possible estate agent fees and consequently, this sector would benefit.

“Conversely, our analysis is still yet to see this shift. It is perhaps during such tough economic conditions that wary buyers seek the expertise of a traditional estate agent.”

Its third quarter Property and Homemover report highlighted a 9.7% drop in sales agreed to 272,000, while the average asking price was down 3.6% to £431,000.

There has been a 2.6% annual rise in property stock for sale, TwentyCi said, but that has been accompanied by a 16% decline in demand amid economic headwinds, rising interest rates and higher mortgage pricing.

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