Online agents have failed to capitalise on the cost of living crisis and have seen their market share for exchanges drop in the first months of this year, TwentyCi has revealed.
Figures from the property data company shows the average market share for hybrid or online agents slipped to 6.5% in the first quarter of 2023, down from a high of 8.2% in 2019.
Its first quarter property and homemover report showed online brands continue congregating in lower-value brackets and have yet to break significantly into the South East of England.
The analysis showed that the market share for online agents is highest in the below £200,000 bracket at 7.2%, dropping to 6.3% at between £200,000 and £350,000, 4.5% beween £350,000 and £1m and to just 1.3% above £1m.
Online agents are most dominate in Yorkshire and The Humber, with a market share of 9.2%, dropping to 8.4% in the North West and 8.1% in the Midlands.
This cohort’s market share drops to 3.6% in the South East and 3.2% in the East of England.
The report said: “Cost of living challenges would presumably have encouraged sellers to seek lower-cost options, however our analysis shows the opposite.
“Purplebricks, Yopa and Strike remain the dominant brands, together representing over 70% of this sector.
“We wait to see the outcome of the strategic review that Purplebricks are currently engaged in, with a change in ownership a likely outcome.”
The report also found that sales across the market were down 7.5% during the first quarter of 2023 compared with the same period in 2019.
But the sales agreed to new instructions ratio remains at pre-pandemic levels, TwentyCi said.
The first quarter saw 269,000 residential sales and almost 70% of all properties listed have sold so far in 2023.
The average asking price remains at £420k, 24% higher than in the first quarter of 2019, while supply is 9% below pre-pandemic levels, according to the report.
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Company Insight (co uk) is just finalising new research into the UK Estate Agency market which goes deeper into financial and operational performance. Purplebricks, YOPA and Strike are dominant online brands, but they also stand out in terms of operating losses (Purplebricks / Yopa). The largest operating loss of 50 companies analysed was Purplebricks (although currently has 16,832 residential listings & Yopa has 3,225). Full data available soon
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