Hot property: An increase in the supply of housing is expected to support revenue

The industry has grown over the past five years, though revenue has been somewhat volatile. IBISWorld estimates that industry revenue will grow at compound annual rate of 1% over the five years through 2018-19 to reach £11.1 billion. This largely reflects the recovery in the property market following the economic downturn, which had caused revenue to fall sharply prior to the beginning of the period. Revenue rose significantly over the two years through 2015-16, supported by various government reforms and initiatives, alongside strengthening economic conditions and high consumer confidence levels. The low interest rate environment has also supported growth. Revenue generated from non-residential property transactions increased as business investment more.

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

Industry Threats & Opportunities

  • A declining number of residential property transactions is expected to cause revenue to fall
  • The increase in stamp duty caused residential property transactions to fall in the second half of the period
  • The supply of new housing is expected to increase over the next five years, to the benefit of demand
  • Industry Report - Industry Locations Chapter

    LondonLondon is home to 13.4% of the UK population, but it accounts for 26.5% of industry establishments. This is largely because residential and commercial property prices there are considerably higher than in the rest of Britain, so estate agents earn more in commission in terms of fee income. Since London is a global financial centre, demand for high-quality commercial property is strong. London's primacy as a revenue source for the industry is not expected to diminish in the years to come, since the UK economy is likely to remain heavily dependent on financial and other services...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
  • Priced out
  • Mortgage rates
  • Stamp duty changes
  • Government initiatives
  • Online agents
  • Chart: Revenue Growth

  • Industry Outlook
  • Property prices
  • Supply shortage
  • Online changes
  • 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
    ProfitWagesMarketing and advertisingPurchasesDepreciationOther 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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