The growth of online rivals could leave one in five estate agents at risk of going out of business.
According to recent research, almost 5,000 estate agents are showing signs of financial distress, with higher staff and property costs leaving traditional agents struggling to compete with online challengers.
A spokesperson for the report says: “Traditional high street estate agents’ profit margins are being squeezed from both sides, from cut-price online competitors to their larger counterparts on the high street who are forcing them to up their spending or give up the race.”
The current political instability is putting pressure on the property sector as a whole. Two of the UK’s largest estate agents, Countrywide and Foxtons recorded a sharp downturn in property transactions in the last quarter and a major dip in first-half profits.
Foxtons Chief Executive Nic Budden says: “Our performance has been resilient in the context of a London property market that has been further impacted by unprecedented economic and political uncertainty.”
If you have any concerns about your personal or business financial situation, our property sector experts at partner business, BM Advisory, are able to assist. We specialise in finding innovative solutions for individuals and businesses in distress.