One in five estate agents risk insolvency, finds survey

Tue, 01 Aug 2017 | BUSINESS NEWS

Nearly a fifth of the UK’s estate agents face a real risk of going bust, according to a report published by accountancy firm Moore Stephens.

Research suggests that a total of 19 per cent of the country’s estate agents – some 4,928 out of 25,560 in total – are showing early signs of financial insolvency.

Moore Stephens’ report suggests that the success of property websites such as Rightmove or Zoopla are rendering estate agents and increasingly unimportant part of the home-buying process. In the age of apps and websites, those looking to buy property can begin the process without visiting high street chain or seeing an agent.

Other new players in the market, such as online agents Purplebricks or HouseSimple, are pressuring more traditional agents by shaving off fees for customers.

Mike Finch, restructuring and insolvency partner at Moore Stephens, says that traditional high street agents are finding their profit margins “being squeezed from both sides” by large chains and cut-price online competitors.
He added: “Many areas across the UK are oversaturated with estate agents, and competition is becoming too much for some smaller businesses.”

The Moore Stephens research comes at a time when property sales in the UK have remained well below levels seen before the 2007-2008 financial crisis.

The Royal Institution of Chartered Surveyors estimated in June that the number of properties being put on the market had fallen for the fourth consecutive month.

The Moore Stephens report also suggests that more homeowners are planning to build an extension instead of buying a new property. New planning applications rose to 29,654 in the year up to March 2017, up from 29,041 in the same period last year.

Subscribe to Business Sale Report


Share this article



Latest Businesses for Sale

High-Technology Business
UK Wide

Focused on advances in energy storage, energy harvesting motor and drive systems and software. Several projects are approaching proof-of-concept stage and will be ready for commercialisation in the near future. Driven by a highly experienced and qual...

Asking Price: Offers Invited
Turnover: £5,000,000

FREEHOLD


Distributor of Powered Lift Platforms
UK Wide

Specialises in the supply, installation and servicing of industry-leading, mainly pneumatically operated personnel lifting equipment for the industrial and transport sectors. Operates directly as the sole UK and Ireland distributor for an internation...

Asking Price: Offers Invited
Turnover: £1,000,000

LEASEHOLD


Technology Company with Unique Reusable Core Business for the Newspaper Trade (Fast Sale)
South East, UK

Interested parties are required to submit an expression of interest by 5pm on Tuesday 30th July 2019 with offers to be provided by 3pm on Thursday 1st August 2019. An opportunity exists to acquire the business and assets of this division of a highly...

Asking Price: Offers Invited
Turnover: £300k - £1m


View more businesses for sale

News Search

Latest News

 
23
 
Jul
 

Award-winning American diner put up for sale | BUSINESS SALE

An award-winning 50s-style American diner in Albert Village,...

 
22
 
Jul
 

Ayr Artwork firm goes into administration | BUSINESS SALE

The Steve Brown art company has announced that it has entere...

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
23
 
Jul
 

Award-winning American diner put up for sale | BUSINESS SALE

An award-winning 50s-style American diner in Albert Village,...

 
22
 
Jul
 

Ayr Artwork firm goes into administration | BUSINESS SALE

The Steve Brown art company has announced that it has entere...

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources