High street agents under threat from online firms

The online estate agent market is forecast to grow to 10 per cent of the overall sector by 2220, despite representing less than 2 per cent of the market today. At least, that is the bold prediction put forward by Will Clark (pictured), Managing Director at SellMyHome.co.uk, who firmly believes that many high street estate agents will need to consider changing their fee structures in order to remain competitive. He points to the fact that the rise of online estate agents offering to sell properties for as little as a few hundred pounds has significantly increased competition on the high street, making it harder for high street estate agents to justify what he describes as an “archaic percentage fee structure.” “It all comes down to pricing”, he said. “When you consider what high street estate agents charge for the services that they provide, it is mind-blowing.” The online estate agent is planning to raise £10 million over the next 12 to 18 months with a view to expanding the business and increasing its own market share. “So far we have used internal funding to give us an injection of cash to support the business. But while we do have aggressive…

Read More »