Leading Online Estate Agents Grew Stronger in 2018 According To New Study
Leading online estate agents Purplebricks and Yopa have gained market share following the recent demise of rivals Emoov and Tepilo.
That’s according to data collected by UK website Property Road who spent the past 12 months analysing the property listings on Zoopla for sixteen of the largest online agents.
Over the course of 2018, Purplebricks grew their share of the online market by 6.2% to 59.3%, Meanwhile, Yopa became the second largest online estate agent in the country when they grew their share to 15% in December, up 5.4% from January.
Both appeared to make gains once Emoov and Tepilo entered administration, though Yopa had been steadily gaining share throughout the year.
Online Market Still Dominated By Handful Of Brands
Purplebricks and Yopa weren’t the only brands to benefit from the downfall of Emoov and Tepilo with all but two of the largest six online agents seeing their market share rise in December.
Of the sixteen online agents that formed part of the study, 96.4% of the property listings in December were posted by the top six agents (Purplebricks, Yopa, Express Estate Agency, House Network, Doorsteps.co.uk, and Housesimple). That shows a significant gulf between the largest brands and everyone else.
Fixed-Fee Prices Attracting Higher Value Properties
The study also highlighted that the online agent using a commission-based pricing structure, Express Estate Agency, consistently had the lowest average asking price throughout the year.
This may reflect the fact that those with the highest value properties tend to have the most to gain by using a fixed-fee estate agent, rather than a commission-based service.
“Online estate agents have arguably had their toughest year yet with the demise of some well-known brands including the likes of Hatched, Emoov, and Tepilo. However, it appears that rather than open the door for the smaller guys, it has instead allowed the larger brands to really stamp their authority on the market,” said Paul James, owner of PropertyRoad.co.uk.
“It’s difficult to call what will happen in 2019 but it’s likely that the larger brands will continue to dominate and we’ll see some of the smaller firms closing up shop or being acquired by those with the deepest pockets. That said, don’t rule out more big-name casualties as the online agents continue to try and find a sustainable model that appeals to consumers over the traditional high street offering.”
The full study results can be seen at: https://www.propertyroad.co.uk/online-estate-agent-review-2018
Author: Paul James PropertyRoad.co.uk