The number of people employed as estate agents and property auctioneers in the UK has declined over the past three quarters, according to analysis from Jefferies.
Employment in the sector fell from 62,400 in Q4 2024 to 57,700 in Q1 2025, before dropping again to 53,800 in Q2 2025, continuing a downward trend.
The London-based firm said the shift partly reflects changes in how agencies are structured, with increased use of automation and AI tools reducing the need for some administrative and process-driven roles. Firms are also understood to be focusing more on cost control and productivity, particularly in a market where transaction volumes have remained uneven.
The data suggests a gradual rebalancing of agency teams, with greater emphasis on revenue-generating roles such as sales and client management, alongside wider adoption of technology to handle routine tasks.
“There is a growing perception that AI is going to replace estate agents and, in many parts of the industry, we’re already seeing businesses reduce headcount and lean more heavily on technology,” said Damien Jefferies, founder of Jefferies London.
Jefferies London, which has increased headcount by 30% this year, is aiming to expand its partner agent network this year, and sees AI as a means of supporting growth.
The firm said it is using AI to support staff. Its in-house system, J.E.S.S.E., is designed to assist agents with day-to-day tasks and has been developed around existing workflows.
In Q1 2026, the system handled more than 3,000 enquiries, up 27% on the previous quarter.
