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Transaction delays are still the biggest headache for UK estate agents, with 74% citing prolonged timescales and chain uncertainty as a major issue, up from 62% last year, new research shows.
With average transactions now taking 120 days, slow completions are hitting buyer and seller confidence, increasing fall-throughs, and squeezing agency profits, according to Landmark Information Group’s latest Estate Agency Market Research Report.
Despite these challenges, 74% of agents report strong turnover. However, over half (52%) say it has been a financially tough year, up from 24% in 2024, as economic uncertainty, rising compliance demands, and operational costs bite.
The Q3 Property Trends Report adds that speculation ahead of the Autumn Budget, particularly around potential property tax changes, has prompted some buyers and sellers to delay decisions, slowing market activity.
A number of agents view technology as the route to easing these pressures, with 94% of respondents expecting administrative tasks to be automated within five years, freeing agents to focus on clients and revenue generation.
Nine in ten (90%) have already started exploring AI tools, and nearly eight in ten (79%) have implemented them to improve efficiency. AI is also expected to become commonplace, particularly for onboarding, compliance, and administrative tasks within the next five years, although agents remain cautious about its use in direct client interactions.
The report also highlights a notable shift in business models. The traditional “no sale, no fee” approach continues to decline, now used by just 32% of agents. Most now favour part-upfront payment, part on completion (65%) or full-upfront models (31%), reflecting greater due diligence earlier in the process, enabling buyers to make more informed decisions earlier in the home buying process, and a drive to reduce fall-throughs.
Other findings include:
+ 87% expect the level of regulation in the industry to increase over the next five years.
+ 82% find it difficult to keep up with the latest fraud, AML and cybersecurity threats.
+ 93% say the Renters’ Rights Act has impacted their role to some and greater extent.
+ 85% believe AI will become commonplace in estate agency within five years.
+ 68% plan to use AI to support market appraisals, 63% for mapping, and around 60% for sanctions and AML checks.
Taken together, the findings point to an industry under pressure but ready for change. Transaction times remain a defining challenge, with the average completion taking around 120 days – 60% longer than in 2007 – but there is growing momentum behind the industry’s Project 28: A Charter for Faster, More Certain Property Transactions.
The initiative has set a target of reducing transaction times down to 28 days from sale agreed to exchange, reflecting a growing appetite across the industry for practical solutions and offering a clear route to a faster, more efficient and resilient property market.
Ben Robinson, divisional director of Landmark Estate Agency Services, said: “The estate agency sector faces a multi-faceted set of challenges. Economic headwinds and transactional delays continue to test agency resilience. Yet there is cause for optimism. The growing adoption of automation and AI is beginning to unlock real productivity gains and new approaches to charging clients and using upfront data are yielding strong results.
“The next phase must focus on cross-industry collaboration, such as through Project 28, to tackle these challenges and deliver greater certainty to home buyers and sellers and improve estate agency profitability.”
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