New figures released show High Street estate agents taking an increasingly large market share as online operators continue to crumble.
According to the fortnightly update from The Advisory, a consultancy that monitors housing market trends, figures for the two weeks to June 28 show that not only do High Street agents have a massive 97.2 per cent market share, but they also grew their market share over at a greater rate than the three best performing online rivals.
Other figures show:
- the top 10 online estate agents accounting for just 3.8 per cent of all new properties listed; that’s down from a market share high of 5.19 per cent in May this year;
- Purplebricks' market share of the online estate agency sector nudged up from 69.6 per cent two weeks ago to 70.2 per cent now;
- Housesimple, which last week revealed it was going to sell homes at no cost to the vendors, lost momentum and is now tying for second place by Yopa.
In terms of online agencies’ individual performances, in the past fortnight here are the new listings totals:
- Purplebricks: 2,618
- Housesimple 396;
- Yopa: 396;
- Doorsteps: 156;
- 99 Homes: 55;
- Open House Estate Agents: 40;
- imovehome: 36;
- sellmyhome: 35;
- Emoov: 20;
- easyProperty: 12.
"Reports of the death of high street estate agency have been greatly exaggerated. For all the promises of disruption, the top 10 players in the online estate agency sector account for just a paltry 3.8 per cent market share. If the sector were a house it would be a money pit” explains Gavin Brazg, founder and chief executive of TheAdvisory.
“With this current market share, I can't see many high street estate agents lying awake at night petrified they're about to experience their very own Uber or Amazon moment. Despite their eye-watering marketing spend, Purplebricks' new listings seem to have remained broadly in-sync with the market as a whole. They seem not to be outperforming the market and so it's hard to see how they're going to grow the company to take double digit market share."
You can see the full report from TheAdvisory here.
Meanwhile the Daily Telegraph over the weekend predicted that Purplebricks would post losses of £51m when on Wednesday it reports its financial performance for the 12 months to the end of April.
This compares with a loss of £26m for the year before.