Self-employed agency models to hit 50% market share - prediction

A third of agents are expecting the self-employed model to make up 50% of the market in the next decade but there are concerns about the challenges of going solo, a survey suggests.

When asked how much agent market share they think self-employed agency will gain over the next 10 years, 5% said 50% or higher, 29% said between 25%-50% market share, 39% said between 10%-25%, and 26% said below 10% market share.

The perhaps unsurprising results come from new self-employed agency brand iad UK.

It commissioned a survey of more than 100 agents and asked how important the model is going to be over the next 10 years, what they think are the most important things a self-employed brand should offer its agents. 

When asked what is most important to them when considering a move from the high street to a self-employment agency, or from one self-employment platform to another, 16% stated that support with initial set-up costs was what mattered to them most. 

Additionally, 12% said that it was important to work under a brand that has strong brand awareness and recognition and 12% also said that ongoing marketing and website support, both local and national, was also an important consideration.

Other important factors when considering a move to a self-employment agency were compliance support (11%), a generous commission split (10%), and support with answering telephones and booking viewings (9%)

Agents were most nervous about the initial set-up costs (23%), the ability to create traction for their personal brand and career (23%), and earnings potential (23%).

Other agent concerns include wider economic uncertainty (14%), receiving enough ongoing support from the umbrella brand (9%), a lack of due diligence support (5%), and a lack of marketing support (5%). 

Lee O’Brien, managing director of iad UK, said: “The self-employed agency model is still emerging here in the UK and remains an unfamiliar concept for many agents who know only the world of the high street. It’s clear to see that some are concerned about their own ability to create and maintain a successful personal brand, and desire an umbrella brand to offer support in all corners of the home selling process. 

“Put another way, they’re worried about money. Will they earn enough, will income be reliable, and will they receive financial support when it comes to marketing, lead generation, and listing?

“Rather than try to allay those agents of their concerns, we would reiterate our belief that self-employed agency is not for everyone. It’s for people who long for more freedom or a better work/life balance, and who are willing to bet on themselves.”