Hybrid estate agency market share loss ‘to continue’
Purplebricks and Strike have seen their market share bomb, and there is no sign of an upturn, The Neg conference hears.
Hybrid estate agencies like Purplebricks and Strike which have seen their market share plummet in the last few years could be set for more misery, as told at The Negotiator Conference on Friday.
Purplebricks, which is now owned by Strike after it was purchased for £1 earlier this year, has witnessed its market share sink by 40% in a year.
And Strike has lost more than 30% of its market slice over the same period. Meanwhile rival Yopa has remained stable with a smaller share.
Estate agencies
The claims come from TwentyEA executive director Katy Billany who said that online or hybrid agents as a whole have witnessed their share of the housing market slump from 7.6% to 5.5% in four years.
Most of that trend is explained by the disastrous events at Purplebricks, and a much less severe downturn in Strike’s fortunes.
I don’t think we will see another share again like Purplebricks had.”
She told conference delegates that Purplebricks once boasted a 4.5% share and now has only 1.2%, while Strike’s slice has sunk from 1.4% to 0.7%, and Yopa has stayed around 0.7%.
“I don’t think we will see another share again like Purplebricks had,” Billany said.
Very strong
In lettings, hybrid agents were very strong, she said, with 14% of the market. OpenRent owning a 12.6% market share, compared with the largest traditional agent, Foxtons, only having 1.7%.
Self-employed agents have grown their share of the market dramatically, from 0.2% to 1.2%, Billany said.
She warned that self-employed agents were set to make a bigger impact than online or hybrid businesses, such as Purplebricks.
Purplebricks Group final death throes revealed including 0.6p share offer
OpenRent is the king of the rental market, showing that 4.8M in the PRS like a DIY model, this is the model that can be king in the residential sector. But its cost base is tiny and that is its USP. Helpful to the client allowing listing on major portals with a light slice of extra services on top.
Regarding Purplebricks and Strike there is a common denominator here – the person who runs them both – clearly a new hand is required to steady the ship or ships – (All strategy should come from the c-suite) which have opposing business models baked in, one is cash upfront to list, the other is free with bolt on services, a push me pull you Doctor Doolittle mythical animal.