Online and hybrid estate agents lost market share during the second quarter of this year, based on exchanges, as they continue to struggle to return to the peak level recorded pre-pandemic, the latest figures have revealed.
According to the TwentyCi Property & Homemover Q2 2023 report, the market share of online agents was 6.4% of all exchanges, declining slightly from the previous quarter and well below the peak of 8.2% in 2019. Penetration is down across the board regionally, except in the East of England where it remained static.
Market share is still weakest at the higher end of the market, but even amongst properties of less than £350,000 share has dropped marginally by 0.3%.
Colin Bradshaw, managing director, TwentyCi, commented: “With the pressures faced by the housing market and households facing cost of living challenges you might think that this would encourage sellers to seek out lower fees from online/hybrid agents.
“Yet our analysis indicates the opposite. It is possible in uncertain times, sellers particularly concerned with higher value transactions are seeking out advice and expertise of a traditional agent.”
Aside from the data relating to online and hybrid estate agents, the TwentyCi’s Property & Homemover Q2 2023 report also revealed that property sales agreed during the period increased by 14.5% to 305,000, while almost seven in 10 properties listed this year have sold.
New instructions are up 11% compared with Q1 2023, with 445,160 new properties coming to the market during the period.
Colin Bradshaw, chief executive of TwentyCi, commented: “There has been no shortage of speculation declaring doom for the housing market.
“The economic backdrop does, of course, remain a concern and all eyes should be on whether inflation slows and so interest rates stabilise, but the signs are that the owner-occupied market is proving remarkably resilient.”
