What problems are estate agents facing?
Many traditional estate agents are in turmoil, as they continue struggling to compete with online competition from the likes of Zoopla, Rightmove, Purplebricks and Housesimple. Higher property and staff costs combined with many potential buyers conducting their own research online, is pushing many estate agents towards insolvency.
Smaller high street estate agents across the UK are said to be suffering the most as a result of having tighter margins, along with increased in competition.
Statistics over the last few years have painted a problematic picture. According to an analysis of data from one accountancy firm, nearly a 5th of UK estate agents are facing financial problems, with 19% showing warning signs of insolvency.
There has also been a considerable reduction in the number of homes sold.
The hiking of Stamp Duty in 2014 for expensive homes, especially in London, has been attributed to the low supply and demand in the market, along with fewer people deciding to move and preferring to opt for home extensions instead.
