Welcome to my annual predictions article, where I contemplate the triumphs and tribulations ahead of us in 2025. Reflecting on the latest trends and insights, here’s what I foresee shaping our industry in the year ahead:
The technology race and marketing revolution
I’ve spent many months immersed in AI tools, trying to work out what they can do for us and how they can change our industry and I always come back to this: We are an industry powered by people, backed by great tech. Not the other way around.
This coming year, we will see AI and automation tools becoming mainstream, with platforms like ChatGPT, Synthesia and ElevenLabs enabling hyper-localised and cost-effective content creation.
It means that all agents need to upskill in what these tools can do for them. Those reluctant to embrace video marketing, whether through avatar-driven updates or 360-degree reels, risk falling behind. Engaging, localised content, including humorous videos and authentic customer stories, can generate millions of views on social media, proving that creativity remains king.
Investments in customer relationship management (CRM) systems will also take precedence. Rightmove and OnTheMarket’s evolving lead management tools aim to predict customer behaviour more effectively, signalling a shift from reactive to predictive marketing. Agents must adopt similar data-driven approaches, combining propensity modelling with personalisation to stay relevant.
In a tech-driven landscape, customer service remains a key differentiator. The value of five-star reviews is greater than ever; one bad review can tarnish a branch or person’s reputation, making proactive client engagement a priority.
Economic shifts and tensions
I’ve written recently about the next three months of madness and mayhem as we try to push through property transactions before Stamp Duty regulations change in April, at a time when the conveyancing bottleneck remains unresolved. Will it be a case of those who shout loudest and pay the most will get their transactions through? This artificially induced market panic underscores the urgent need for end-to-end digitisation of the transaction process.
We’ll also see a rise in self-employed and franchise models, driven by cost pressures and the closure of high-street branches. The government’s NI increase will speed this along and we’ll continue to see the expansion of hub-and-spoke operations, with regional hubs supporting remote agents.
House prices will continue to edge upward due to chronic supply shortages, even as affordability constraints weigh on demand. World events continue to contribute to tensions, with uncertainty impacting market confidence.
Renters face an even tougher landscape, with a continued landlord exodus pushing rents higher, particularly in London where increases have averaged 11% annually.
Portal wars and industry transition
The portal wars are heating up. CoStar’s rebranding of OnTheMarket and its US expertise in branding and analytics make it a serious contender to challenge Rightmove’s dominance. Zoopla, meanwhile, is doubling down on marketing with high-profile TV ads – which I must admit I do not understand! Agents could benefit from this competition among the portals, as it may help reduce their fees and provide more choice.
However, the rising cost of lead acquisition – whether through portals, PPC, or other – remains a concern. Agencies must rethink their marketing mix, blending traditional methods like direct mail with digital campaigns to optimise returns.
Will this also be the year that investors in Purplebricks finally realise this model is never going to give them the return on investment they expected and they call it quits? You can only keep throwing money at a problem for so long before you realise that you need to take drastic action to make a profit – especially with NI costs spiralling.
As for Lomond, it doesn’t take a supersleuth to see they’re on the investment trail, backed by private equity money. But who will be next on their mergers and acquisition trail? Any organisations with decent lettings books will be serious contenders.
We’re starting 2025 with a record pipeline but multiple challenges in getting these converted and quickly over the line.
While the year ahead will bring its share of challenges, it also offers immense opportunities for those willing to lead with creativity and determination. Let’s make 2025 a year of transformation for our industry.
Paul Smith is chairman and founder of Spicerhaart
