Online agents’ market share slipped towards the end of last month.
The top ten online firms accounted for just 3.8% of all new properties listed in the 14 days to last Friday.
Purplebricks’ share of the online sector nudged up to just over 70%, while Housesimple and Yopa tied for second place.
There was good news for all estate agents, as stock levels increased.
The Advisory’s latest research shows that 3,971 more properties were brought to the overall market in the fortnight to last Friday than in the previous 14-day period.
Altogether, 98,739 homes were brought to the market in the 14-day period, up from 94,768.
Purplebricks had 2,618 new listings – miles ahead of its nearest two online competitors, with 396 each – but including an “unquantifiable number of properties back from a marketing break”, according to The Advisory.
easyProperty was bottom of the top ten, bringing just 12 properties to the market.
Gavin Brazg, founder and CEO of The Advisory, said: “Reports of the death of high street estate agency have been greatly exaggerated.
“For all the promises of disruption, and all the money spent, the top ten players in the online estate agency sector have only managed to amass a paltry 3.8% market share.
“If the sector were a house it would be a money pit.
“With this current market share, I can’t see many high street estate agents lying awake at night petrified they’re about to experience their very own ‘uber’ or ‘Amazon’ moment.
“Despite their eye-watering marketing spend, Purplebricks new listings seem to have remained broadly in-sync with the market as a whole.
“Our independent analysis seems to show they are not outperforming the market, and so it’s hard to see how they’re going to grow the company to take double digit market share.”
The full report is here:
Comments (10)
To me what is obvious is the fact there is little real appetite for online agents. Unless you spend hundreds of thousands of pounds every month the public do not think or use them.
Emoov, easyproperty all but stopped with advertising and instructions fall off the cliff.
PB okay 2000 plus instructions but how many have been relisted. Advertising from what RQ said in previous interviews is circa 2k per instruction.
As we have said all along, its not a sustainable business model.
This is confirming that on-liners only tried to do the dotcom boom of the 1990’s. All based on a game of numbers, if in utopia. If you fail you go under …. and all have failed and all will go under as they have no control on the supply chain or market conditions. What is so outstanding is the big names never did the homework or were dupped … or they wouldn’t have ended up in the mess they are in!
Agree Woodentop PB took advantage of the red hot market where selling was very easy, however now the market is tougher and you actually have to be an estate agent to sell a home, the better agents will win out.
PB have built a brand based on lies, sales stats plucked out of thin air, dodgy reviews, and poor service levels, whilst trying to portray themselves as the new broom. I would like to predict that the upfront fee for doing nothing will be the PPI of the future though.
I think you are right. It only needs an investor to run to the city to claim foul play to spark an investigation. How a company can have ever been valued at £meggar M’s with no assets or track record and draw in investors to the tune of £100’s millions is scandalous. It stinks of rogue market trading, using hype that was spun to fool? The same style of spin being used on the public perception.
Worth noting that Housesimple only make it on this list because they are giving it away for nothing !
Good point! Would be great to learn what % of the 396 (pathetic number) were free listings (probably very high) and how the move to nationwide 0% commission will grow listing numbers (if at all). The next report will be very interesting.
You have to wonder with all the relisting that some of these companies do, if their market share is actually a lot lower than 3.8%
What’s that on the horizon?
its The ‘HMS Online’ business model, a ship that has clearly sailed and heading straight for an iceberg!
‘Our independent analysis seems to show they are not outperforming the market’
But, but, but, onliners are the Game Changers. The Disrupters, The Saviours of the Consumer, The Magicians who can give so much for so little. They will destroy the dinsosaurs that are traditional-full -service-pay-when-you-sell agents.
I know these to be FACTS because I was told so by the likes of the Bruces, Quirk, Beeney, Ellice, and dozens of others.
Surely they can’t all be wrong?
Can they?
High Street/Local Estate Agents retain over 96% of the New Instructions within the UK Residential Property Sales Market …….over 96%
96%
96 percent