Despite half of agents feeling under pressure to reduce fees, only a tiny handful are planning to do so.
According to Zoopla’s State of the Property Nation report, 51% of agents cite pressure to lower fees as their biggest challenge after the economic and political situation.
However, just 4% are likely to cut their fees.
The same proportion, 4%, say they will not move from the high street. In the south, the proportion falls to 2%, while in the north it rises to 10%.
It is not the only issue where there is a north/south divide on what agents are thinking and planning.
Nearly three-quarters (74%) of estate agents in the south regard economic uncertainty as their greatest challenge facing them next year compared with 56% of agents in the midlands and 62% in the north.
This is further highlighted by how few estate agents in the south – just 22% – are positive about the UK’s economic growth.
This contrasts with the positivity felt by 40% of agents in the midlands and by 36% in the north.
There is another major north/south divide when it comes to online agents.
In the south, online firms are an issue for 27% of agents, but in the north, 40% see them as a challenge.
Worryingly, both sales and lettings agents regardless of location are planning to shed jobs.
An average of 9% of sales agents are planning to reduce headcount, going up to 12% in the south.
Unsurprisingly, with the fees ban on the horizon, more lettings agents than sales agents are likely to cut staff numbers – an average of 15%.
A total of 660 agents took part in the survey, which can be read here:
https://advantage.zpg.co.uk/insights/reports/state-of-the-property-nation-report-2018
Are you thinking what they’re thinking? There are some interesting graphics on these three links:
Hello Zoopla ….another press release/report commenting on estate agents.
OnTheMarket …..zip, zero, nothing. I remember all the fighting talk from Ian Springett about OTM leading UK estate agents etc…..? It’s time that someone woke up the OTM PR Dept! ……or are they all just counting their shares?
”Hello? Hello?? ……is there anyone in?”
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Now is the ideal time to INCREASE fees.
Most decent agents don’t use Zooplankton anyway.
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JonnyBanana43, I would have thought by all means increase your fees if you have been underselling your business however I would struggle to just increase my fees for the sake of it.
Personally, I don’t do cheap fees or try to undercut other agents. I charge the fee applicable to the work involved in a particular property sale and a fee that is reflective of my service.
If I’m going to increase my fee there has to be a really solid reason for doing do or if I’m adding value/service such as a property movie then that would be a chargeable add-on. My own view is the client would look more favourably at paying for added value rather than me just bumping my fee up.
To be fair, I play the long game and maintain a higher average fee over the course of the year – it’s the 12 months that matter for me, not just a handful of blistering months.
Each to their own though….. we’ll all have a different take in what works in our particular market.
Letting I don’t do, although it always looked lucrative if done properly and it can sustain an estate agency business through harder times.
I’m still listing houses for sale this late in the year and sales are positive because supply is short. Let’s see what 2019 brings? ……the slate wiped clean again in the New Year.
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Increase fees to landlord (as compliance workload increases)
Enforce more rigorously tenancy default fees to tenants
Bring in house/out source some services
Acquire some other smaller letting agents who relied on tenant fees to attract landlords
I think those agencies who relied on tenant fee income of 30% or more, are the only ones who may shed headcount, because doing the above will not replace IMHO the lost tenant fee income
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We’re slightly increasing our fees but pumping rents up.
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Just out of interest how are your landlords taking that? Have you had many not agree to the increases or are you only doing on new instructions or relets?
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