Online agents are taking 10% market share for properties under £200,000 for the first time, the latest TwentyCi report says, describing it as a “significant win” for the sector.
Covering the last three months of 2019, the report says that nationwide, overall online agent market share of listings remains steady at 7.9% for a fourth consecutive quarter.
However, in some regions – the north-west, midlands, and Yorkshire & the Humber – online market share is over 10%. The highest market share is in Yorkshire & the Humber at 12.33%. The region with the lowest market share is the south-west, with 4.5%.
The report shows that as house prices rise, online agent market share dwindles to the point at which the sector does barely any business in properties over £1m, with just 1.1% market share.
Colin Bradshaw, chief customer officer at TwentyCi, said that winning 10% market share in cheaper properties was significant for online agents, “yet again demonstrating their appeal to the lower-value end of the housing market”.
He went on: “However, for Purplebricks to achieve its stated goal of 10% market share, a significant penetration into other regions of the UK and for properties greater than £200k is essential.
“Polarisation of its proposition will inhibit the strategic objective.”
The new TwentyCi report, published this morning, also finds that overall property exchange volumes increased slightly year on year by 0.8%, with 928,234 homes exchanged in the 12 months to the end of the year.
Yearly new instruction volumes in the 12 months to December 2019 were down: there were 1,673,845 new instructions, a fall of 3.4%.
The report also notes 225,069 fall-throughs and 798,110 withdrawals to change agent or to withdraw from the market.
The report does not go beyond the end of December but says that the ‘Boris bounce’ has yet to materialise, although it does suggest that “a significant and material change to the market could occur in a relatively short space of time”.