Safe as houses: Industry revenue rises despite residential property transactions falling

Estate agents act as intermediaries when property is bought, sold or rented. They are paid on a fee or contract basis, often earning commission on deals. Revenue growth was strong in the first year of the period as the residential and commercial property markets were supported by a strengthening economy and the continued effects of the Help to Buy scheme introduced in 2013. However, the number of residential property transactions in the United Kingdom is expected to have declined drastically in 2016-17 following the vote to leave the European Union and is expected to have fallen again in more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A decline in mortgage approvals should contribute to higher rental activity in London
  • Many consumers are choosing to wait and save for a larger home
  • A no-deal exit from the European Union could cause house prices to decline significantly
  • Industry Report - Starting a New Business Chapter

    The amount of capital needed to open an estate agent business is not high, and there are few regulatory requirements, but prospective entrants must negotiate other barriers. Acquiring skilled and knowledgeable staff can be difficult or expensive, particularly in boom times for the industry when there is a shortage of suitable labour. Since estate agents rely heavily on their reputation and recognition in the community, it can also be a challenge for new entrants to overcome this disadvantage and make themselves known. This task is often made easier by poaching staff members from other estate agents that already have standing in the industry. However, it is not always possible to attract such staff members. ...purchase to read more.

    Additional Insights for the Estate Agents Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Estate Agents Industry are

  • Effective product promotion
  • Having a good reputation
  • Highly trained workforce
  • IBISWorld analysts also discuss how external factors such as Number of residential property transactions and Business capital expenditure in the Estate Agents industry impact industry performance..

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    What's in this report

    What is the Estate Agents Industry?

    Estate agents act as intermediaries when property is bought, sold or rented. They are paid on a fee or contract basis. They also provide advice and appraisals in connection with buying, selling and renting property and provide escrow services. This industry includes online-only estate agents. Property-related legal services are excluded from the industry.

    Industry Products
  • Residential transactions
  • Non-residential transactions
  • Residential lettings
  • Non-residential lettings
  • Other services
  • Industry Activities
  • Helping customers buy and sell property
  • Acting as agents for property rentals
  • Providing advice on properties
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of residential property transactions
  • Business capital expenditure
  • House price index
  • Mortgage rate
  • Consumer confidence index

  • Current Performance
  • Rising rent
  • Changing rates
  • Stamp duty
  • Government initiatives
  • Online competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Property prices
  • EU effects
  • Tackling the home shortage
  • Relocating online
  • Table: Estate Agents Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Estate Agents Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Project Development

  • Key Selling Industries
  • Advertising Agencies
  • Newspaper Publishing
  • Search Engines

  • Products & Services
  • Residential transactions
  • Residential lettings
  • Non-residential transactions
  • Non-residential lettings
  • Other services
  • Chart: Estate Agents Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household owner-occupiers
  • Lessors
  • Residential tenants
  • Businesses
  • Commercial tenants
  • Chart: Major Market Segmentation for the Estate Agents Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Estate Agents

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Estate Agents Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Estate Agents Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Estate Agents Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • When the legal title of a property is transferred from one person to another.
  • Escrow
  • In the context of the industry, escrow means putting the property, cash and title of the property in possession of a third party until the transaction is complete.
  • Fiduciary
  • A person to whom property is entrusted for the benefit of another.
  • Help To Buy
  • A government-backed scheme aimed predominantly at first-time buyers. It consists of equity loans and mortgage guarantees.
  • What Our Customers Say

    Why buy this report?

    The Estate Agents market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Estate Agents:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Estate Agents market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Estate Agents, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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