Estate Agents

Market Report 2008

Publication Date	August 2008
Publisher	Key Note
Product Type	Report
Pages	103
ISBN Number	not applicable
Product Code	KEY00021

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Summary

This Key Note Market Report examines the UK market for estate agents, focusing on the residential property agencies. It excludes property services such as auctioneers, valuers, estate managers, property companies and property consultants.

Key Note estimates that estate agency revenues from residential sales amounted to 6.71bn in 2007. Revenues are derived from financial services (such as mortgage and insurance sales), lettings and property management, auctions, valuations and surveys, as well as commission from the sale of property. However, the majority of estate agents revenue - almost three-quarters - is generated from sales of residential property. The total number of residential property transactions, i.e. excluding land and commercial property transactions, was estimated at 1.8 million in 2007.

The housing market has been on a roll for 13 years, so a sizeable proportion of estate agency staff have not worked in conditions as difficult as those they are now facing. As a result, they lack the experience required to survive in such a market, and some of the younger estate agents might well withdraw from the market. Indeed, there are already suggestions that the market as we know it today will not exist in 10 years time, given the currently dire state of the property market and the opportunities for developments on the Internet.

Countrywide remains the largest estate agency, followed by Connells Residential, LSL Property Services and Halifax Estate Agency. The industry continues to restructure. Strutt & Parker has merged with Lane Fox and Foxtons has been sold to a private equity firm. In June 2008, Humberts went into administration but was subsequently acquired by a joint-venture company. Although the firm will remain in business, some closures would seem inevitable. Indeed closures have already taken place across the industry and, by the end of 2008, it is likely that there will be 2,000 fewer estate agency branches than there were at the beginning of the year, with more likely to close in 2009.

Given the growing power of the Internet, many industry observers believe that, when the estate agency industry does recover, it will not resemble the industry of today. It is expected that a period of restructuring will result in a smaller market and more people will be selling property without using an estate agent.

Key Note forecasts that both the number of transactions and estate agency revenue will decline in 2008 and 2009, and the market is not expected to recover until at least 2010.

Content

Executive Summary
1. Market Definition
- Report Coverage
  - Table 1: Number Of Estate Agency Branches In The Uk, 2004-2008
- Market Sectors
  - Sole-Agency Agreements
  - Joint Sole-Agency Agreements
  - Multiple-Agency Agreements
  - Table 2: Estimated Breakdown Of Total Estate Agency Revenue
  - From Residential Sales (%), 2007
- Market Trends
  - Falling House Prices
  - Declining Sales Volumes
  - Smart Properties Are Not Immune
  - Reduced Mortgage Availability
  - Increasing Interest In The Rentals Market
  - Growth In Quick-Sale Companies
  - Seasonality
  - Table 3: Seasonality Of Estate Agency Business In England And Wales (000 Transactions And %), 2005-2007
- Economic Trends
  - Population
  - Table 4: Uk Resident Population Estimates By Sex (000), Mid-Years 2003-2007
  - Gross Domestic Product
  - Table 5: Uk Gross Domestic Product At Current And Annual Chain-Linked Prices
  - (m), 2003-2007
  - Inflation
  - Table 6: Uk Rate Of Inflation (%), 2003-2007
  - Unemployment
  - Table 7: Actual Number Of Unemployed Persons In The Uk (Million), 2003-2007
- Market Position
2. Market Size
- The Total Market
  - By Volume
  - Property Transactions
  - Table 8: Total Number Of Property Market Transactions In The Uk (000), 2003-2007
  - Figure 1: Total Number Of Property Market Transactions In The Uk (000), 2003-2007
  - By Value
  - Estate Agency Revenue
  - Table 9: Estimated Breakdown Of Total Estate Agency Revenue From Residential Sales In The Uk (m), 2007
  - Figure 2: Estimated Breakdown Of Total Estate Agency Revenue From Residential Sales In The Uk (%), 2007
  - Affordability
- New Housing
  - By Volume
  - Table 10: Number Of Permanent Dwellings Completed In The Uk By Country, 2003/2004-2006/2007
  - By Value
  - Table 11: Value Of New Housing In Great Britain (m), 2003-2007
3. Industry Background
- Recent History
- Number Of Companies
  - Franchise And Affiliated Operations
  - Table 12: The Largest Affinity Groups And Franchise Operations In The Uk
  - By Number Of Branches, January 2004-2008
  - Estate Agencies
  - Table 13: Number Of Uk Vat-Based Enterprises Engaged As Real Estate Agencies
  - By Turnover Sizeband (Number And %), 2006 And 2007
- Employment
  - Table 14: Number Of Uk Vat-Based Enterprises Engaged As Real Estate Agencies
  - By Employment Sizeband (Number And %), 2006 And 2007
- Regional Variations In The Marketplace
  - Regional House Prices
  - Table 15: Average House Prices In The Uk By Region (), First Quarter 2008
- Distribution
  - How Robust Is The Market?
- Legislation
  - Estate Agents And Property
  - Renting
  - Stop Now Order
  - Insurance
  - Money Laundering
- Key Trade Associations
  - Association Of Residential Lettings Agents
  - Institution Of Commercial & Business Agents
  - National Association Of Estate Agents
  - National Association Of Valuers & Auctioneers
  - National Federation Of Property Professionals
  - Ombudsman For Estate Agents
  - Royal Institution Of Chartered Surveyors
4. Competitor Analysis
- The Marketplace
  - Table 16: The Leading 30 Estate Agencies In The Uk By Number
  - Of Residential Branches, January 2004-2008
- Market Leaders
  - Countrywide Estate Agents
  - Connells Residential
  - Lsl Property Services Plc
  - Halifax Estate Agencies Ltd
  - Spicerhaart Group Ltd
  - Arun Estate Agencies Ltd
  - Hamptons Group Ltd
  - Humberts
  - Savills Plc
  - Kinleigh Folkard & Hayward Ltd
- Marketing Activity
  - Main Media Advertising Expenditure
  - Table 17: Main Media Advertising Expenditure By Residential Estate Agents
  - (000), Years Ending March 2007 And 2008
  - Table 18: Main Media Advertising Expenditure By Online Estate Agents
  - (000), Years Ending March 2007 And 2008
5. Strengths, Weaknesses, Opportunities And Threats
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Buying Behaviour
- Consumer Penetration
  - Table 19: Summary Of Results (% Of Adults), 2008
  - Adults Who Have Engaged An Estate Agent To Sell A Property
  - In The Past 7 Years
  - Table 20: Adults Who Have Engaged An Estate Agent To Sell A Property
  - At Least Once In The Past 7 Years By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Have Bought A Property Through An Estate Agent
  - In The Past 7 Years
  - Table 21: Adults Who Have Bought A Property Through An Estate Agent
  - At Least Once In The Past 7 Years By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Have Moved Home In The Past 7 Years
  - Table 22: Adults Who Have Moved Home At Least Once In The Past 7 Years
  - By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Would Search The Internet For Properties
  - Table 23: Adults Who Would Search The Internet For Properties If They
  - Wanted To Move Home By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Would Visit An Estate Agent If They Wanted To Move Home
  - Table 24: Adults Who Would Visit An Estate Agents Office If They Wanted
  - To Move Home By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Think Estate Agents Give Good Value For Money
  - Table 25: Adults Who Think Estate Agents Give Good Value For Money
  - By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Think Estate Agents Are Trustworthy
  - Table 26: Adults Who Think Estate Agents Are Trustworthy
  - By Sex, Age, Social Grade And Region (%), 2008
  - Adults Who Think Estate Agents Are Properly Regulated
  - Table 27: Adults Who Think Estate Agents Are Properly Regulated
  - By Sex, Age, Social Grade And Region (%), 2008
7. Current Issues
- Current Market Conditions
- Corporate Developments
  - A Presence On The High Street
- Home Information Packs Pros And Cons
- Tescos Estate Agency
8. The Global Market
- Recent Global Trends
9. Forecasts
- Introduction
  - The Economy
  - Table 28: Forecasts For The Uk Economy (000, % And Million), 2008-2012
  - Forecasts 2008 To 2012
  - By Volume
  - Property Transactions
  - Table 29: Forecast Number Of Property Market Transactions In The Uk
  - (000), 2008-2012
  - By Value
  - Estate Agency Revenue
  - Table 30: Forecast Estate Agency Revenue From Residential Sales In The Uk
  - (m), 2008-2012
  - Figure 3: Forecast Estate Agency Revenue From Residential Sales In The Uk
  - (m), 2008-2012
- Market Growth
  - Figure 4: Total Number Of Property Market Transactions In The Uk
  - (000), 2003-2012
- Future Trends
  - A Smaller Presence On The High Street
  - More Business Online
  - Scotland To Launch Hips
10. Company Profiles
- Arun Estate Agencies Ltd
- Connells Residential
- Countrywide Estate Agents
- Halifax Estate Agencies Ltd
- Hamptons Group Ltd
- Kinleigh Folkard & Hayward Ltd
- Lsl Property Services Plc
- Savills Plc
- Spicerhaart Group Ltd
11. Further Sources
- Associations
- General Sources
- Government Publications
- Other Sources
- Bisnode Sources
- Key Note Research
- The Key Note Range Of Reports