A revaluation: Growth is likely to be limited as the ban on letting agents' fees takes effect

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 two years of the period as the introduction of the government's Help to Buy scheme in 2013 stimulated a significant rise in residential property transactions. A strengthening economy also fed through to the residential and commercial property markets. 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 anticipated to fall again in the current year...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The mortgage rate is set to rise in the current year, adversely affecting mortgage approvals
  • Lenders have lowered their mortgage rates over the current year to support demand for mortgages
  • A slump in London house prices is likely to continue into the next period
  • Industry Report - Industry Investment Chapter

    The Estate Agents industry has a low level of capital intensity. IBISWorld estimates that for every £1.00 estate agents spend on capital investment, £14.36 is spent on wages. The service-based nature of the industry necessitates a high level of personal contact with clients and other parties. Employees are also required to carry out various other tasks, such as preparing and completing important paperwork. Human capital is essential in this area because of the need for absolute accuracy.Estate agents generally require a high-exposure location for their offices, but these are commonly rented rather than owned, leaving office fit-outs, office equipment and IT equipment as the main items that incur depreciation. Cap...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 class 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
    ProfitWagesMarketingPurchasesDepreciationOther costs
  • 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
    Countrywide plc,
  • Table: Countrywide plc - financial performance

  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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?

    IBISWorld’s Estate Agents market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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