Why is the property industry not consolidating faster?

The Real Estate Pundit writes primarily about Property Technology: https://twitter.com/realpundit

Seriously, in a massively fragmented industry, few companies make big money and none come close to dominating in any sphere.

What is it about estate agency that perpetuates an incredibly long tail of same-same service providers. There’s very little difference between one agent and another, consumers have a general hate for agents as they see the job as not adding value, yet it seems accessing property owners requires a long tail of small agencies to exist.

In the US, Realogy group uses this fact and the licensing/broker/MLS regime to provide a platform for many agents to operate; often part time.

If Realogy wanted a larger slice of the pie, could it go from franchisee to massive, consolidated agency/ brokerage?

 In the UK, the largest groups of Countrywide, LSL and Connells don’t even represent 20% of the market combined.

It seems the last decade has seen some bundling of services (sales and rentals/ lettings together, in-house mortgage brokers and legal services).

However the recent trend is in reverse and more unbundling of services (pay a cheap fee (to an online-only agent) for marketing, and ad-hoc services).

It is likely the unbundling trend in rental property will continue as the age of property owners declines (inheritance) and those people born into the easy money (in comparison to a real job) that comes from being a landlord are younger.

Selling a home, with a higher burden of rules and regulation, alongside the larger transaction size, seems to attract an attitude of cowardice from property owners (just get it done quickly please, while I look away). Such a mental state permeates most that sell; they care little for the process and focus on the money coming through at the end (regardless of whether they got the best price, or not).

The biggest change coming to this industry is data-led, but not for the reasons you think it is. Data will allow property owners to do more than value their home, it’ll empower them to first rent out, then sell, in an online ‘Amazon-style’ marketplace.

But it won’t happen any time soon. Until then, listings services will gather the biggest profits (for providing access to market – selling shovels and jeans in a gold rush).

Alex Evans

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More