The National Association of Estate Agents (NAEA) has claimed over the weekend that the industry is getting ‘proptech fatigue’ as an ever increasing number of start-ups pitch their wares via phone and email.
Its Chief Executive Mark Hayward made the comments during an interview with The Sunday Telegraph.
“There are so many products being punted at them on a daily basis to solve problems that they didn’t actually know they had,” he says.
The tenor of Hayward’s comments set the NAEA substantially at odds with government policy.
Just before parliament shut up shop prior to the General Election and government departments went into ‘election purdah’, housing minister Esther McVey announced a tech initiative in partnership with venture capital fund PiLabs to “bring about a digital revolution in the property sector”.
But her announcement also highlighted the huge number of proptech firms faced by agents; McVey wants to convene the 700 firms that claim to operate within the residential and commercial property industry sectors for round-table discussions to get her data initiative off the ground.
The article also reveals research from venture capital data firm Pitchbook which indicates investment in start-up proptech is cooling.
It claims that UK-backed proptech start-ups received £321 million in funding during 2018 but, as the end of 2019 approaches, the sector has only received £131 million so far this year.
But despite the NAEA’s clear scepticism about proptech, it supports several tech suppliers including OneDome and, Hayward (pictured, left) tells The Sunday Telegraph: “The house buying process needs something because the process just takes so long and there’s no certainty while it’s going on.”
Read more about ‘proptech fatigue‘.