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| One in five high-street estate agents risk going bust, study claims | One in five high-street estate agents risk going bust, study claims |
| (6 months later) | |
| Up to 5,000 traditional agents are struggling to survive amid growing threat from low-cost, fixed-fee online firms and larger rivals, say accountants | |
| Press Association | |
| Mon 31 Jul 2017 06.00 BST | |
| Last modified on Mon 27 Nov 2017 19.15 GMT | |
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| One in five UK estate agents are at risk of going out of business amid a growth in online companies, new research shows. | One in five UK estate agents are at risk of going out of business amid a growth in online companies, new research shows. |
| Almost 5,000 estate agents are showing signs of “financial distress”, said accountancy firm Moore Stephens. | Almost 5,000 estate agents are showing signs of “financial distress”, said accountancy firm Moore Stephens. |
| Traditional companies are likely to have higher property and staff costs and are struggling to compete with low-cost, fixed-fee online agents, said the report. The growth in property websites has also undermined the role of estate agents, it suggested. | Traditional companies are likely to have higher property and staff costs and are struggling to compete with low-cost, fixed-fee online agents, said the report. The growth in property websites has also undermined the role of estate agents, it suggested. |
| Mike Finch of Moore Stephens said: “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. | Mike Finch of Moore Stephens said: “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. |
| “Many areas across the UK are over-saturated with estate agents, and competition is becoming too much for some smaller businesses.” | “Many areas across the UK are over-saturated with estate agents, and competition is becoming too much for some smaller businesses.” |
| The study follows a slump in profits announced last week at two of the UK’s biggest estate agents. | The study follows a slump in profits announced last week at two of the UK’s biggest estate agents. |
| Countrywide, the UK’s biggest listed estate agency, said pre-tax profits for the six months to June were £447,000, down from £24.3m in the same period last year. | Countrywide, the UK’s biggest listed estate agency, said pre-tax profits for the six months to June were £447,000, down from £24.3m in the same period last year. |
| Revenues and profits at Foxtons also fell in the first half as the London-focused estate agent pointed to “unprecedented” economic and political uncertainty hitting the property market. | Revenues and profits at Foxtons also fell in the first half as the London-focused estate agent pointed to “unprecedented” economic and political uncertainty hitting the property market. |
| The group said revenue fell 15% to £58.5m in the six months to 30 June, with pre-tax profit plummeting 64% from £10.5m to £3.8m. | The group said revenue fell 15% to £58.5m in the six months to 30 June, with pre-tax profit plummeting 64% from £10.5m to £3.8m. |
| A separate study has found that planning applications for new shops have fallen to an eight-year low amid continued growth of e-commerce. | A separate study has found that planning applications for new shops have fallen to an eight-year low amid continued growth of e-commerce. |
| There were 6,525 applications in England in the year to March, almost half the number in 2008/-09 and down by 11% on 2014-15, said Lendy, which provides property finance and development loans. | There were 6,525 applications in England in the year to March, almost half the number in 2008/-09 and down by 11% on 2014-15, said Lendy, which provides property finance and development loans. |
| Greater Manchester recorded the biggest fall in retail planning applications last year, it said. | Greater Manchester recorded the biggest fall in retail planning applications last year, it said. |
| Liam Brooke of Lendy added: “The continued softness in the retail property market shows no sign of abating. Retailers are shunning and shutting bricks and mortar shops. | Liam Brooke of Lendy added: “The continued softness in the retail property market shows no sign of abating. Retailers are shunning and shutting bricks and mortar shops. |
| “The government needs to find a way to encourage retailers to give the high streets a face lift. | “The government needs to find a way to encourage retailers to give the high streets a face lift. |
| “Big brands are continuing to shift their focus towards their online services.” | “Big brands are continuing to shift their focus towards their online services.” |
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