Estate Agents At Threat as Housing Market Booms

As the impact of the pandemic lessens home owners are 14% more likely to sell their house online, privately or with a fast property buying company than with a local estate agent.

Local Knowledge is losing ground to online services.

Findings from a recent national survey have shown that over the past 5 years, the popularity of local estate agents has almost halved with homeowners favouring alternate methods of selling their house, versus 2016. Findings suggest that people are preferring online services with both low fee online estate agents and fast property buying companies growing in popularity. 

The survey showed 70% of respondents favoured local knowledge in 2016 vs 43% in 2021, with online services growing from 15% to 25% and fast property services from 3% to 18%, becoming the third preferred method of selling a house. 

While those living rurally across the UK are more likely to favour their local estate agent, for much of the UK the modernisation of the property market, exacerbated by social distancing and lockdowns, has driven people to online interactions. 

Speed and Safety are Gaining Importance

Price remains the most important factor when selling a house. Homeowners were clear that speed of sale and privacy were increasingly important, with many respondents raising safety as a new element to take into account. 

While in 2016 working with a friendly estate agent was in the top 3 considerations when selling your home, it ranked last in 2021, with factors such as privacy, safety and guaranteed sale coming ahead. 

The findings reflect new business models taking over the housing market. In 2016, services such as Vivo or online estate agents such a Purple Bricks were new to the market, and homeowners looked at them with suspicions, but in the recent 2021 survey, it was clear that the guaranteed sale and privacy afforded with fast property buyers was seen as beneficial to someone selling their home. 

Vivo Property Buyers had this to say about the survey:

‘Online agents and property buyers were already there five years ago, but these services required homeowners to change their habits. The pandemic has accelerated this. What we are seeing now is that these services can be really efficient and will help the industry become better in the future’

The survey also analysed these insights through different demographics and areas, as well as exploring why selling a house is considered the second most stressful life event. To see the full report go to: https://www.vivopropertybuyers.co.uk/estate-agents-are-losing-ground-to-fast-house-buyers-online-agents/