Online agents have lost market share, while Purplebricks’ share of the online sector has slipped – although it remains easily in front.
Meanwhile, there is new evidence that the market itself has slipped. According to the Land Registry, in April there was an annualised ‘run rate’ of just 885,000 transactions, suggesting that both high street agents and online firms will be battling harder for market share amid a decreasing pot of sales.
On Twitter, Stephen Hayter said that the figure suggests that the market is trading at only 80.45% of what is generally seen as a healthy market of 1.1m transactions.
According to The Advisory, which tracks the estate agency market on a fortnightly basis, the top ten online agents accounted for 4.4% of all new listings in the two weeks to May 17.
This was down from 5.19%, the highest market share recorded so far this year.
At the same time, Purplebricks’ market share of online agency fell from 71.2% to 67.5%.
With that figure, Purplebricks remains miles ahead of other online firms, with 2,749 new listings between May 3 and last Friday.
The next online agent, HouseSimple, had 516 new listings in the same period, followed by Yopa wih 482.
Newcomer imovehome had 45 new listings.
Three online agents took on fewer properties than in the previous two-week period. They were Purplebricks (9.7% fewer), Emoov (80% down) and easyProperty (175%) down.
The Purplebricks reduction in new instructions included an “unquantifiable” number of properties back from a market break, says The Advisory.
All told, there were 95,926 new listings in the last fortnight, almost 10,000 more than in the previous two-week period.
High street agents between them took easily the lion’s share of these new listings – 87,741 of them.
https://www.linkedin.com/pulse/real-state-online-estate-agency-sector-2019-gavin-brazg/
Meanwhile back in the USA the exodus continues for Purplebricks . Marcus Fleming ,the State Director for Arizona and Nevada has upped sticks and joined Rocket Lister as COO
https://www.linkedin.com/in/marcusflemingaz/
He has only recetly featured on Brick’s blog dispensig some useful tips to homeowers .It looks like he has heeded his own advice and relocated!
http://www.purplebricks.com/blog/5-more-myths-shared-by-first-time-homebuyers/
Meanwhile back in Blighty it looks like no concerns for Sporting Ken Bruce for any slippage in market share.
Another busy week for him
3 of his string of racehorses are entered at Yarmouth on Wednesday .
Then on Thursday it’s off to Lingfield where he has 2 more entries
I wonder where he finds the time!
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Surely this has to be the year that EasyProperty knock it on the head. As for the others, you can only keep losing money for so long, are any of them actually making a profit?
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Worth noting that Housesimple are only where they are because they are still giving it away for nothing !
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House Simpletons zero fee is just speeding up their exit.
Intelligent people want service and distrust cheap or free offerings.
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Great research! “The top 10 on-line agents we could manage to think of down the pub on a Sunday afternoon” would be a more accurate title. Ewemove has over 2,000 sales and lettings listings currently.
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I read it as SALES listings,NOT stock of sales and lettings – how many sales have you listed in the 14 days covered by the report?
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Ewemove have been left off the list intentionally
Gavin from the Advisory
We exclude “online only” estate agencies with USPs that do not focus on cheap fees. EweMove for example are a franchise operation that charge fees comparable to the high street on a no sale no fee basis.
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There’s a Yopa board on my daily commute now.
The thought of having to stare at it now for the next 3 years 🙁
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The Onliners are Doomed, they just haven’t realised it yet!
Fingertips, Virtual Cliff Edge…..
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So…….Purple Bricks has deposited over £2.7 million in the last 14 days so on target for £6 million this month.
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Which is below the run rate required to match 2018 turnover – i.e. they are rapidly going backwards.
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Nope…..They will match last years figures.
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Only another 12 months to find out – let’s see how your other predictions pan out first.
Is Kenny Bruce still working or have they put him on “gardening leave” yet?
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Kenny’s doing a great job, thanks for asking
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Yes he has been Herculean in his efforts for Larne FC
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Assuming none of the “new” instructions have been on marketing breaks or have been sold and fallen through. How much do you think they have spent in the last 14 days ?
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AgentQ73: Money is not an issue when the purpose is to disrupt, what we do know is they will generate £6million this months with 2-3% of the market share so the potential growth is significant so justifying more money to invest to remove the conventional pipe and slippers brigade who sell free valuations and demand a percentage of the homeowners property.
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Looks like money is an issue to the shareholders who have been selling up. It was certainly an issue to the board who booted Mr Bruce out.
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Sdaltaf101
So far listings this Financial year at Bricks are showing just under last year It appears that Gavin doesn’t factor in the recyclers which accounts for approx 10-20% of all daily “new instructions” but it is broadly the same
Yes you won’t ‘be far wrong at £6m for May which is similar to last year . I guess treading water is pretty satisfactory in the current climate .
However flatlinig at this stage in the journey wasn’t part of the narrative. In their IPO they were scheduled to be shooting up to 100k pa new instructions
That is currently off the menu and hence investors deserting the shares
The recent appointment of an interim chief in USA promoted from within coupled with some other high level departures looks like they will be drawing the line their pretty soon
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The figures are very encouraging particularly with the recent hick-ups, so we can assume the UK is treading water whilst they pull the plug on the Australia and the US, Canada will be sold off for a substantial profit and we wait to see on Germany.
Then its the High Street here we come.
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I should imagine closures costs in Oz will be about £7m and maybe £10m in USA
The Canadian market is flagging so selling that operation for a”substantial profit”is star gazing ,more likely a management buyout with a haircut
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The oversees project has been a significate investment resulting with failure in the US and Australia, they could keep Canada but the sensible option would be to sell and consolidate their efforts on UK domination. The removal of key personnel is always an opportunity to bring in new blood and focus on a new strategy and the financial markets always like the under dog and what they have done is clearly demonstrate a successful business model in UK targeting the percentage on asset model who currently dominate the market with over 90%, so there is huge growth potential with the next phase being fought on the high street.
Raising money will not be a concern whilst Woodford maintains control.
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Yes certainly some fresh blood required more like wholseale structural changes required in a post Bruce world and this may well arrive by merger activity if they are going to gain any further traction.
“Raising money will not be a concern whilst Woodford maintains control.”
Raising money shouldn’t be a problem but that won’t be anything to do with the presence of Woodford .Quite the contrary
He is damaged goods .Too much investsed in high risk unquoted companies.The city would want to see him with a very much reduced holding as they would be concerned he might be a forced seller as big clients like Kent County Council are contemplating withdrawing their funds under his management
The Woodford Equity Income fund has shrunk from a peak of £10.2 billion in May 2017 to £4.4 billion at the end of March this year.
His biggest backer is Hargreaves Lansdowne and if they reviewed their position all havoc would break out
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Which reinforces the argument of entering the high street, their marketing budget can be reduced significantly as they are now the story so the media will actively promote PB for free, regardless of what you think of Woodford he has made a huge commitment to Purple Bricks and although the model has failed in other countries it’s a huge success in the UK with massive potential.
If the model failed in the UK then I agree the writing is on the wall but it hasn’t, an the potential growth market is spectacular.
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I think it is overstepping the mark to say Bricks has been a huge success It has already flatlined .Hats off to Michael Bruce he has established the brand very quickly
Certainly the public are more aware of Bricks than Countrywide .The question is can they afford to reign back marketing expenditure without serious impact
No guarantee that the current management are capable of moving Bricks up another step but an interesting journey nevertheless
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“Certainly the public are more aware of Bricks than Countrywide.”
And therein lies another fundamental flaw in the PB model (a trap which CWD miss by having multiple local brands) – any bad publicity has to be countered by expensive PR/advertising on a national level.
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So they have spent how many £m’s over the years and they are only achieving 2.9% of the housing market listed (included false re-listings) and we need to be worried. Dream on.
Purple Bricks share price collapsing now at 101p.
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WoodentopThank you so much for the insight, now will you let the adults talk.
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Tantrum. Another Troll caught with their pants down. No answer, just insult. Do I care, no. Just show yourself up so that everyone can judge what you represent.
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Come on fatladS give it a rest. You’re on the wrong board.
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Let me get this right Sdaltaf101 Potential Sellers should list their home with Purplebricks when they know that Purplebricks crashed/burned in Australia and the US will closely follow.
So, listing with Purplebricks is actually choosing to sell with a company that has monumentally proven its ability to fail by spending Millions and also demonstrated it ability to monumentally fail its clients?!
It’s laughable and SCANDALOUS!
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And the option is……………………give away a percentage of the homeowners asset for doing the same, advertising to an open market?.
That’s why they will succeed to dominate the high street offering a full range of services individually priced to compete against Thatchers army 🙂
If there is anyone you can point your finger and blame it would have to be the likes of Rightmove and Zoopla who given the Hybrid model access as a consequence the high street lost a vital USP whilst paying ever increasing fees to the portals.
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And the option is……………………give away a percentage of the homeowners asset for doing the same, advertising to an open market?.
But the High Street are not doing the same as PB. The High Street advertise properties to a wider audience, pro-active in finding and helping both buyer and seller, provide local employment, provide pensions, support their local communities, pay UK taxes that contribute to local amenities and the nation and most importantly for the consumer: the local access, knowledge, contacts needed during the sales progression/finalise and often service beyond the call of duty.
You keep going on about Thatchers army. Conjures up all sorts reasons why you ………..
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Purple Bricks do everything you have mentioned other than demanding a percentage of the homeowners hard earned asset.
And that’s why they will enter the high street and start picking the low lying fruit 🙂
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Which planet are you living on, no they don’t. You have no comprehension of business economics and the staff and costs involved in running a successful estate agency. To enter the high street their fees will have to go up massively and that cuts their jugular with Commissary and where or where are they going to find the next round of multi £m’s to fund it? The city have given them the thumbs down, sell, sell, sell and the share price is collapsing each day. Even the local (not so local) LPE are made to be self employed with no benefits and leaving in their droves because of the impossible PB working conditions. Who would want to work for PB!
Its more than clear that your are more concerned over “Thatcher’s agents”, and as proved 96% of the consumers are more than happy to use the high street and only 2.9% want Purple Bricks and something like 50% wished they hadn’t paid for a service that never sold their home.
The only person who keeps on saying they will move into the High Street is you, not PB or anyone else. Wishful thinking from someone who claims to be a teacher, therefore is not privy to what PB will or will not do. You are nothing more than a self-styled protagonist.
NEWSFLASH: PB Share Price hit £1.00.
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To be fair Sdaltaf101
…..comparing Purplebricks to other Toilet Rolls …..because that is a more appropriate comparison of their abilities ……I would say the poor Purplebricks User is going to use an awful lots of sheets to get the job done.
What are Purplebricks without Millions per month in marketing? ……ZippideeDooDaaaaah!
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Hey…GPL…Great comment!
I’m so impressed…..Oh! and if you didn’t know that’s sarcasm…
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Staldaf101,
Never in all my life read such nonsense. Clearly a PB fanatic. So be brave enough tell us who you are to add some substance to your wild visions?
I worked for PB at a decent level and can assure you there is no intention to go on the high street anytime in the near future.
Truth is comparing it to the high street is not fair. Wether you like it or not its vastly different. (Dont make me embaress you with what I know)
PB will be around for a long time but the pipedream of 20% marketshare etc has gone. It will always have some brilliant and passionate people at all levels and personally wish them all the best but thankfully for the rest of the people who rely on PB for an income the people who make the decisions are far smarter and more informed then you.
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My name is Sdaltaf101 whats yours?
Please……embarrass me
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No time for a keyboard warrior.
Says a lot about your estate agency ability and insight if believe PB offers the same.
Go live in your fantasy land.
Hope works out for you.
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Hope it works out for you.
Shame i was looking forward to being educated by a true professional
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Well I figured I couldn’t make you look anymore stupid then already do.
Best leave that to the professionals.
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Hmmmmmmm…I don’t think so.
Give it a go, you may be surprised.
Good chance you are one of my failures!
One of those LPE who talked a good story but had very little substance.
You know the type, those looking for an excuse to get out before being pushed…sound familiar?
So you would be in my Failure Column?
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PB instructions down on same period in May for last year by about 14% to about 3822 according to my proxy Fewer LPEs.
My proxy which does take account of properties returning from a marketing break.
For the market as a whole for May down about 13% on 2018 (approximation).
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I predict an increase on sales of 6 – 7% on 2018
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Were never know as not published.
Theres a difference between a PB sale and traditional sale too..
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So they will jump from 50% to 57% tops! I’m impressed.
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Does that include fall throughs?
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So, just a cut-price version of Purplebricks then?
Another disruptor disrupting the Callcentre Lister/FSBO market.
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Most people aren’t confident of being their own agent let alone being able to value .Unable to sort the wheat from the chaff Yours is the worst of all offers neither fish nor fowl ,
Presumably you inspect before valuation ?
What you are doing is reducing the skillsets and knowledge down to the lowest denominater.
Will they recognise development value ? Be aware of the latest trends Able to identify a special purchaser or identify serpula lacrymans What you are doing is setting somone off on a hazardous journey just to extarct a glorified listing fee Be careful on your duty of care -it might come back to haunt you
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Now if you knew the slightest thing about being a real estate agent … what about GDPR, the chains and surveys problems, proceeds of crimes act ….. oh year you haven’t got time to do that, certainly the vendor won’t have a clue.
You want to be another on-line advert (I see you have switched from PB disciple) .. fine. No problem … short life span, bigger players than you have tried and failed.
Will agents advise their customers that you are in their chain ….. you bet they will as they have a legal duty of care not to.You may find your customers chance to get into a chain collapses before you can instruct solicitors. Why … well if you new estate agency and the pitfalls of buying and selling, you would know why chains collapse and how idiotic your suggestion is.
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Its doesn’t look like a call centre, the customer uploades everything and then its live on Rightmove & Zoopla for £249 so any leads will be passes direct to the customer, there is no need for a call centre.
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So 118 for sale acc to Zoopla and you value from your desk
Lets take Hilderstone for example in your patch where there is an unhomogenous range of houses in the village How can you confidentally value from your desk without an inspection purely relying on an owner’s description
https://beta.companieshouse.gov.uk/company/08010283/filing-history
Latest account showing an increased deficeit
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Its good Zoopla and Rightmove support the private sale customer, the sector is changing so why not put your feet in all the boats available whilst increasing the monthly listing fees.
Lets give it some thought selling a property isn’t difficult estate agents are not qualified and the founder of Doorsteps was selling houses during his play time at school.
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Sdaltaf101, yet another complete chancer, first language Klingon.
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You clearly don’t know what GDPR is if you use it an example and i would suggest the communication between the two parties would be the same other than the agent passing on messages.
I would think any agreement (subject to contract) would be finalized with the conveyancers, very much as it is now but without the estate agent.
On the face of it a good business model, low monthly costs and portal access for £249, what’s not to like?
eye, eye……..You have censored my thread because I mention a company form your article?
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Any buyer sold via this sham who trys to buy via where I work will have the vendor fully informed off the inability to check or show the least bit of confidence in the chain should they accept. In my experience that will put an end to that.
Next please….
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Great comment Knowitall….Can you please translate into English
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So in your limited option a buyer and a sell are unable to communicate unless they filter their conversations through an agent, so therefore no negotiation can continue between a buyer and a seller unless an unqualified Estate Agent is part of the chain to pass on the message for a percentage of the clients asset?
Really?……………..I don’t think so!
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In that single comment you expose your complete ignorance of what a good, full service, pay on result agent, can contribute to a successful sale at the right price.
I’d try to explain it to you but frankly, your comments, since you arrived on this site, indicate I would be wasting my time.
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What…..Give me a percentage of your asset?
For what…passing on messages and listing on Rightmove…..
Please be the first Estate Agent to justify their fee…
Why do you charge 5 time more than a qualified solicitor who legally finalises any transaction when you are unqualified?
The stage is yours………………..but all we hear is silence.
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‘Hear’
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Thank you………..but still silence
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I’ll indulge one last time before bed, cost is relative to value for money, you are quite right what is the validation of % asset per transaction? Same as no sale no fee I suppose, same service across the board I do not treat a lower fee at lower priority as it’s about the people that I’m working for, you and your ilk will never get that.
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The stage is yours………………..but all we here is silence.
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