Declining market share for online agencies

The market share of hybrid and online agents fell again, this time to 6.7%.

This figure – taken in late December by property consultancy TwentyCi – is down from the recent high of 8.0% in 2020.

Colin Bradshaw, Chief Client Officer at TwentyCi, said: “Such a significant underperformance in a buoyant market will clearly generate considerable interest in the viability of the business model which has failed to gain traction with 93% of sellers l ‘last year.

“This suggests that sellers may prefer the tangible, personal and reassuring approach of traditional agents. It remains to be seen whether it is a blip. »

The report shows that the online/hybrid segment of the market is dominated by three brands – Purplebricks, Yopa and Strike, which account for almost 70% of the niche.

TwentyCi says that during the pandemic, many industries and categories have seen significant change online; however, the real estate agency sector has not followed the trend, with a persistently low level of market penetration.

Traditional agents on the High Street have been found to have mostly benefited from the surge in residential property transactions.

The fall in market share for hybrid/online agents affects all major price brackets of the UK property market, except for transactions of £1m or more.

The £200,000-£300,000 price range saw the biggest year-on-year decline at -12.5%.

TwentyCi has also gathered data showing the strength of the market in 2021 – the market that online agencies have failed to capitalize on.

Agreed sales rose 13% year-on-year and trade jumped more than 28%, showing that the momentum boosted by the stamp duty suspension has continued through 2021.

New instructions were down almost 6% from 2020, suggesting, according to TwentyCi, that a strong seller’s market persists.

The need to change prices has also decreased significantly (24%), as has the number of properties taken off the market (17%), indicating that sellers have obtained a price close to the asking price for their property.