Portal fees are crushing small boutique agents claims hybrid boss
Stephanie Walker of The Agency UK makes comment as she welcomes latest member of the firm's network, Beth Pollard.
The co-founder of a leading hybrid estate agency has warned that the costs of advertising on the big portals are forcing some small bespoke luxury agencies out of business.
Stephanie Walker (pictured below), who is a former Purplebricks high-flyer who helped set up expanding hybrid firm The Agency UK in January 2021, has made the remarks as she reveals its latest hire, Beth Pollard (main pic).
“The portals are inflating the cost of running an estate agency business to near impossible levels for bespoke/luxury independent agencies,” says Walker, who is COO of The Agency UK.
“The dim reality is that many will have to shut their doors as competition in the marketplace greatens.
“We’re applying our knowledge of the British market to the Australian brokerage model and ultimately allowing entrepreneurial estate agents to run their own business with complete autonomy, low overheads, and tremendous backing and support.”
Pollard set up House & Home Bespoke in 2019 based in Melton Mowbray but has now joined Walker’s firm
“Seeing my business develop from a plan I wrote on holiday to a well-established brand in the area was amazing. I loved it,” she says.
“But when the opportunity arose to operate under a bigger umbrella with The Agency UK it was a no brainer.”
The agency has also revealed that it now has 60 self-employed agents, up from 50 in June this year.
Walker adds: “We’re continuously looking to build our network of knowledgeable and experienced estate agents around the country to provide a hands-on approach to moving.
“Beth was the perfect fit for us having successfully operated her own agency in the area. We are extremely pleased to welcome Beth to the family.”
Looking back, I remember Jeremy Agace, at the time MD of Mann & Co addressing a meeting of our local association and recommending 10% of turnover being spent on advertising. It wasn’t difficult back then when a page in the Surrey Advertiser would cost £1200 (£4,800 a month). I’m not sure what that would be these days adjusted for inflation. The great shame is that the National Association had a plan for its own portal drawn up by a sub-committee brilliantly chaired by John Pring, but the main board didn’t proceed with it. Rightmove stepped in with a free-to-list offer and the rest is history. I’m not sure what JA’s recommendations would be these days. When he’s not racing cars at Goodwood he’s on a yacht somewhere. I think the moral to this story is that advertising and marketing is a necessity for most businesses. However, there is likely economic pain on its way so the portals should be careful not to throw the baby out with the bathwater. I suspect there are a few ex-newspaper property advertising executives around the UK who would agree with that sentiment.
“The dim reality” is that most agents can’t envisage a life without the portals – and can’t increase their fees to cover the cost because they don’t think, or can’t prove, they’re worth them.
Competition in the marketplace only increases if agents choose to compete – a purgatory of endless comparison and rejection.