Online agents continue to have some 7% share of the market – a proportion that is barely changing, an analyst has said.
The percentage has fallen back from a peak of 7.9% in August while in March it was said to be 7.6%, and at the start of the year was 7.2%.
In July last year it was almost 8% – still a long way below the 20% routinely forecast by the online sector at its inception.
However, while overall market share has been treading water during the 12 months to September, online agents have shown sustained growth at the lower end of the market and in those regions where average property prices are cheaper.
They continue to have little traction across southern regions, where market share has slipped.
TwentyCi, which has produced the statistics in its latest report into the property market, said: “It seems that to break through the 7% threshold and compete across the entire house price sector with traditional high street agents, a significant change in approach will be needed.”
The report says that online agents “consistently resonate” with the lower end of the market – priced at under £200,000.
The average price listing by an online agent has slipped by 2.4% year on year.
Twenty Ci’s new report says that in the market where properties are under £200,000, online agents command almost 9.5% market share. For properties over £1m, it is 1.2%.
They also do better in certain regions – mainly the northern and midlands markets.
The biggest regional markets for online agents are Yorkshire & the Humber (12%), west midlands (11%) and east midlands (11%).
While online agents have gained market share over the last year in Scotland (now 8.49%), the north-east (7.34%) and north-west (9.9%), they have lost market share in some other regions.
The biggest drop was of nearly 11% in the east of England, where online agents now have 5% market share, and in the south-west, down 13% to a market share of 4.8%.
In London itself, online agents have achieved slightly increased market share over the last year, in inner London from 6.2% to 6.7% and in outer London from 6.7% to 7.1%.
The smallest market share for online agents is in the south-west (4.8%), followed by the east of England (5%) and south-east (5.6%).
TwentyCi’s chief customer officer Colin Bradshaw said: “Online agents consistently resonate with the lower value end of the housing market.
“To achieve significant growth across the market we would anticipate a change in approach from these agents to engage with the broader housing market.”
Elsewhere the new TwentyCi report says that in the third quarter of this year, across the whole market, property exchanges were up 2.2% year on year, but new instructions down 1.7%.
Comments (7)
In future, please can you refer to these companies by their proper term which is either “on-line ONLY” or “hybrid”. I don’t know of a traditional high street agent that isn’t on-line. Referring to these companies as “on-line agents” is akin to calling McDonalds a restaurant
The on-line model targeting the whole country is dead.
What they have demonstrated though is that people will instruct agents who do not have an office.
Local realtors working from home charging high fees and providing a very high end personal service can work; but only on a local level. They can use call answering services or have their own work from home PA using VOIP these days.
It will evolve into something more like this. Something more akin to realtors in the states but without the very very high fees.
Absolutely I think this will be the way forward. The last agent I worked for had three offices; one in the middle and the other two 10 miles each way. Looking at it now could they just have one central office and cut costs dramatically? Probably.
Onliners can never “compete” …..the reality is clear ….they are NOT estate agents.
Onliners? – Property Listers
Estate Agents? – Estate Agents
That’s a big brush you’re tarring everyone with.
Showing a lack of knowledge within the industry.
Onliners such as purplebricks and Yopa (the disruptive ones) I totally agree with you.
Both my companies are run without a high street presence and are completely destroying the high street agents in terms of listing and service.
It is totally down to the company infrastructure…
PB etc, they just do not work because the service is diabolical at best.
Private, local agents with their own businesses, can easily take over a market with the correct approach and better service.
Its hard work, but the reward is being able to charge less and still earn more than the high street.
“…the reward is being able to charge less and still earn more than the high street.”
That is all you guys have got. Cheaper.
One trick ponies all.
wmv97…..
”completely destroying the high street agents……?” ……you say.
Wow….. you bought a bigger brush then….. Did you buy it Online?
You’re not an Estate Agent then ……that’s fine, crack on with your fries/burger, all you eat for 99p approach.
Destroy? …….as you wish.
I’ll send you a big bargepole so you can use that with your bigger brush.