|
Published by: Key Note Publications Ltd
Published: May. 1, 2006 - 182 Pages
Table of Contents
- Executive Summary
- 1. Introduction
- THE TOPIC
- OBJECTIVES
- METHODOLOGY
- ORIGINAL RESEARCH
- DEFINITION
- 2. Strategic Overview
- MARKET DYNAMICS
- Regional Concentration
- The Top Tier: Market Leaders
- Countrywide
- Friends Provident
- Bradford & Bingley
- CGNU
- Royal & SunAlliance
- Halifax
- Legal & General
- Sector Concentration
- Table 1: Leading Groups of Estate Agents in the UK, June 2004 and February 2006
- The Next Tier: Middle-Sized Chains
- Four Main Categories
- AFFINITY AND FRANCHISING
- Movewithus and HomeLink Network
- Home Sale Network
- More Voluntary Groups
- RE/MAX
- Xperience
- National Leaders Look to Franchising
- Townends
- Winkworth
- Hunters
- MARKET TREADING WATER
- Home Information Packs
- Homes Abroad
- Repercussions from the OFT's Estate-Agency Report
- A Substantial Sector
- Table 2: Annual Number of Housing Transactions in England and Wales (000 and index 1978=100), 1978-2005
- Figure 1: Annual Number of Housing Transactions in England and Wales (000), 1978-2005
- Solicitors the Key to Scottish Property
- Rapid Turnover
- LETTINGS SPECIALISTS
- Leaders
- Belvoir
- Jordans
- Association of Residential Letting Agents
- ADVERTISING
- CONSUMER RESEARCH
- KEY POINTS
- 3. Marketing Trends
- PORTALS SPUR MEDIA TAKEOVER
- Propertyfinder
- Findaproperty
- Primelocation
- Fish4 Homes
- Rightmove
- Look4aproperty
- Halfapercent
- Media Groups Clean Up
- PRESTIGE ADVERTISING
- Table 3: Leading Domestic Estate-Agency Advertisers to the UK Market by Main Media Advertising Expenditure (£000 and %), Years Ending March 2001, March 2004 and September 2005
- CO-OPERATION IS THE KEY TO INDEPENDENCE
- HOLIDAY-HOME BONANZA ENDING?
- Table 4: Leading Agents for Foreign Property Advertising to UK Buyers by Main Media Advertising Expenditure (£000 and %), Years Ending September 2005 and December 2005
- BYPASSING THE AGENT
- KEY POINTS
- 4. An International Perspective
- Warning signs over long-haul holiday homes
- SPANISH BUBBLE
- LOOK EAST
- CHINA'S BOOM
- OVER-CONFIDENCE IN THE US
- KEY POINTS
- 5. PEST Analysis
- POLITICAL FACTORS
- Fewer Households Would Save Energy
- More Regulations for the Rental Market
- Decline in Social Housing Benefits Estate Agents
- ECONOMIC FACTORS
- Scatter-Gun Forecasts
- Advances Rising Faster Than Incomes
- Table 5: Distribution of Mortgage Advances in the UK by Value Range (% and £), 2000-2004
- Figure 2: Distribution of Mortgage Advances in the UK by Value Range (% and £), 2004
- Table 6: Pre-Tax Income Bands by Sex — Inland Revenue Estimates for the UK (000, % and £), 2004/2005
- Figure 3: Pre-Tax Income Bands by Sex — Inland Revenue Estimates for the UK (000 and £), 2004/2005
- Pricing Out the Lower Paid
- Selling the Inheritances
- SOCIAL FACTORS
- More Single People, More Multi-Generation Households
- Table 7: Projected Change in the UK Population by Age (000 in each band), 2004, 2006, 2008, 2010 and 2012
- Extended Financial Families
- TECHNOLOGICAL FACTORS
- Teleworkers
- Marketing Alliances on the Internet
- KEY POINTS
- 6. Consumer Dynamics
- OVERVIEW
- FAMILIES WITH young children SHOW GREATEST TENDENCY TO ENGAGE ESTATE AGENTS
- Table 8: Engaging Estate Agents (% of respondents), February 2006
- TIME-POOR CUSTOMERS WANT A ONE-STOP SERVICE
- Table 9: What Customers Want (% of respondents), February 2006
- FEE LEVELS UNPOPULAR
- Table 10: Opinions About Estate Agents (% of respondents), February 2006
- INTERNET FIRST FOR AFFLUENT BUYERS
- Table 11: Internet Searches and Direct Sales (% of respondents), February 2006
- THE NEW LANDLORDS
- Table 12: Landlords and Second-Home Owners in the UK (% of respondents), February 2006
- Table 13: Second-Home Owners Abroad (% of respondents), February 2006
- FRIENDLINESS IS A BIG DRAW
- Table 14: Priorities When Choosing an Estate Agency — Friendliness and Past Success (% of respondents), February 2006
- FEES RANKLE FOR YOUNG VENDORS
- Table 15: Priorities When Choosing an Estate Agency — The Level of Fees (% of respondents), February 2006
- KEY POINTS
- 7. Company Profiles
- INTRODUCTION
- COUNTRYWIDE
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 16: Financial Results for Countrywide PLC (£m, number, % and £), Years Ending 31st December 2003 and 2004
- Future Developments
- CONNELLS
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 17: Financial Results for Connells Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Future Developments
- Your Move
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 18: Financial Results for Lending Solutions Ltd (£m, number, % and £), 26 Weeks to 31st December 2004
- Table 19: Financial Results for Your-Move.co.uk Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Table 20: Financial Results for Reeds Rains Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Future Developments
- Halifax
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 21: Financial Results for Halifax Estate Agencies Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Table 22: Financial Results for HBOS PLC (£m, number, % and £), Years Ending 31st December 2002-2004
- Future Developments
- Spicerhaart
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 23: Financial Results for Spicerhaart Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Table 24: Financial Results for Spicerhaart Group Ltd (£m, number, % and £), Years Ending 31st December 2002-2004
- Future Developments
- Arun Estate Agencies
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 25: Financial Results for Arun Estate Agencies Ltd (£m, number, % and £), Years Ending 31st March 2003-2005
- Future Developments
- Rightmove
- Corporate Strategy
- Advertising and Distribution
- Profitability
- Table 26: Financial Results for Rightmove PLC (£m, number, % and £), Years Ending 31st December 2003-2005
- Future Developments
- Key points
- 8. The Future
- Demographic influences
- Financial groups retreat from property
- Franchising the way ahead
- Lettings specialists
- Diversified property groups
- Internet transformation
- Supermarkets to muscle in?
- Key points
- 11. Consumer Confidence
- METHODOLOGY
- KEY FINDINGS THIS QUARTER
- THE WILLINGNESS TO BORROW
- A Slow Start to 2006
- Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006
- The Desire to Borrow Stays Strong
- Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2005, May 2005, August 2005, November 2005 and February 2006
- THE WILLINGNESS TO SPEND FROM SAVINGS
- Spending From Savings Declines
- Table C: The Proportion of Adults Without Any Savings (%), February 2005, May 2005, August 2005, November 2005 and February 2006
- Table D: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2005, May 2005, August 2005, November 2005 and February 2006
- Consumers Increasingly Cautious
- Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), February 2005, May 2005, August 2005, November 2005 and February 2006
- 12. Further Sources
- Trade/Professional Associations
- Estate Agency Companies
- Marketing and National Press/Other Information Sources
- Government and Official Sources
- General Sources
- Bisnode Sources
AbstractThis Market Assessment report looks at how the leading residential estate-agency chains are shaping up to the challenges of the future. The main objectives are to examine the structure of the residential estate-agency business sector in the UK, investigate the impact that trends in society, the economy and technology are having on the structure of residential estate agency, and to suggest likely changes in the estate-agency sector.
Sales and acquisitions had a significant impact on the leaders in UK estate agency between 2001 and 2006. Friends Provident's estate-agency business was sold to the market leader, Countrywide, in September 2002. In October 2004, Countrywide purchased Bradford & Bingley's chain of estate agencies. The insurer Aviva sold its Your Move estate agencies in July 2004 to Lending Solutions, funded by Barclays Private Equity. Lending Solutions acquired control of Reeds Rains in 2005. Royal & SunAlliance sold its estate agencies to the Skipton Building Society's Connells in October 2003.
There are around 11,800 estate-agency offices in the UK, approximately 10,800 of which are in England and Wales. There are four main categories: national agents selling and letting exclusive, expensive properties; mass-market national agents (headed by the three largest — Countrywide, Connells and Lending Solutions with Your Move and Reeds Rains); mass-market regional agents; and smaller independents. Affinity groups and franchise organisations cater well for the smaller businesses. Four of the five leading groups see franchising as their best way ahead.
The rise of buy-to-let has greatly increased the demand for property lettings specialists. The Association of Residential Letting Agents (ARLA) has a crucial role in raising professional standards in the lettings sector. Around 1,500 offices are affiliated to ARLA. Buy-to-let landlords are building portfolios. In December 2005, more owned three to five properties than either one or two.
From 1st June 2007, vendors will have to provide potential purchasers with a Home Information Pack. The introduction of the Packs could stop the trend towards direct vendor-to-purchaser sales, because of the new responsibilities placed on vendors. The regime will favour large companies that can employ full-time Home Condition Inspectors.
Local agents are still very important in the property sales and letting markets. Property websites and portals give independent local agents national visibility and help the independents to remain a strong force in estate agency. Internet portals are objects of intense commercial competition, although there is an emerging problem of insufficiently distinct branding among the large number of property websites. Media groups are buying up the leading property portals: Propertyfinder, Findaproperty, Primelocation and Fish4 Homes are all part of media conglomerates. However, the market-leading site, Rightmove, remains under the control of estate agents Countrywide, Connells and Halifax.
Advertising data suggest that promotion of properties overseas — notably in Spain — has become very important in the UK.
However, ownership of holiday homes several hundred miles from the UK will be less attractive as higher oil prices force up the cost of flying. Far-away homes will be worthwhile investments only if there is effective local demand. More UK buyers will look for holiday homes nearer home. France, the second most popular choice for UK buyers after Spain, would be a major beneficiary of such a change. Oversupply in Spain is taking the property market off the boil there.
The peak ages for engaging an agent are surprisingly young, at 25 to 44. In the 35 to 44 age band, nearly three respondents in every ten in Key Note's survey for this report (conducted by NEMS Market Research) had appointed an estate agent between 1999 and 2006. However, a majority of survey respondents thought that estate agents' standard of service was let down by a failure to vet potential buyers properly, and fewer than a third said that agents' services were good value.
Demographic trends point to an increase in retirement developments and greater use of equity release, for which estate agents could adopt advisory as well as commercial roles.
In the estate-agency business itself, the retreat of financial-services companies from the operational aspects of estate agency is a continuing trend. Four big financial groups — Bradford & Bingley, Aviva, Royal & SunAlliance and Friends Provident — have exited traditional estate agency since 2002. The only financial-services groups retaining direct control over large chains of estate agents are the Skipton Building Society and the Halifax.
Franchising is an important current trend. The market-leading group Countrywide is growing through franchising. Lending Solutions and Halifax are seeking franchisees and licensees, respectively. Spicerhaart also intends to follow the franchise route. Over the next 5 years (to 2011), franchising is likely to be the main growth engine for estate-agency businesses. The advance of franchising extends to lettings agents. The desirability balance between home ownership and renting is beginning to change in favour of renting. Letting agents and private landlords could have a critical role in the provision of new social housing.
Diversified property groups, encompassing international property development, financing, surveying, sales, rentals and property management, are assuming greater importance in the estate-agency sector. If, in the future, Tesco or another mega-retailer takes the plunge into estate agency at a low commission rate, the impact will be felt throughout the sector and many small firms will fall by the wayside. At the end of April 2006, ASDA announced a 6-month trial selling homes in north east England.
Get Full Details About This Report >>
|
|
US: 800.298.5699
Int'l: +1.240.747.3093
|
|
|
