New research has revealed that 500 estate agencies will go bust this year if current trends and market conditions continue, or approximately 10 businesses every week.
The figures have been compiled by lettings platform Apropos from Insolvency Service data. They reveal that 371 property companies have entered insolvency proceeds so far this year including 378 in England and Wales and 30 in Scotland.
The figures published by Apropos suggest that the number of firms going bust has doubled over the past three years since the EU Referendum.
In 2016 just 185 agents went bust although that year insolvencies increased by 16% within the industry, which at the time was blamed on intense competition and also online agents.
Apropos is a lettings platform built by leading Edinburgh agent DJ Alexander which is due to launch next year. It enables freelance lettings professionals to set up their own businesses.
David Alexander, MD of DJ Alexander, said: “The problems faced by the High Street are impacting on all businesses regardless of sector as we can see from the recent closure of Thomas Cook, the problems facing Mothercare, and the numerous restaurant chains which have closed their doors over the last year.
“These are issues of long leases, high rents and rates and declining footfall.”
Alexander says most customers under 40 run their lives through their phones, tablets and computers and that “this group would never consider going into an estate agents’ office for information and they are the future, so the market must shift to cater for this group,” he says.
Read more about estate agency insolvencies.