This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-44681564
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| A quarter of estate agents 'in financial distress' | A quarter of estate agents 'in financial distress' |
| (35 minutes later) | |
| More than 7,000 UK High Street estate agents are showing signs of financial distress as they face fewer sales and online competition, a study has found. | More than 7,000 UK High Street estate agents are showing signs of financial distress as they face fewer sales and online competition, a study has found. |
| The report - from accountancy firm Moore Stephens - suggests that some 27% of agents are struggling to survive. | The report - from accountancy firm Moore Stephens - suggests that some 27% of agents are struggling to survive. |
| One of the main reasons is a long-term decline in property sales. | One of the main reasons is a long-term decline in property sales. |
| Between 2014 and 2017 the number of transactions in London dropped by 20%, while sales across the UK have fallen by 1% in the past year. | Between 2014 and 2017 the number of transactions in London dropped by 20%, while sales across the UK have fallen by 1% in the past year. |
| The number of estate agents in difficulty has risen sharply from last year, when just under 5,000 were found to be in trouble. | |
| As well as a drop-off in the number of house sales, Moore Stephens said the growth of online agents such as Purplebricks and Emoov had been a factor. | |
| "Insolvencies of High Street estate agents are increasing as online competitors continue to chip away at their sales and undermine commission rates," said Chris Marsden, restructuring partner at Moore Stephens. | "Insolvencies of High Street estate agents are increasing as online competitors continue to chip away at their sales and undermine commission rates," said Chris Marsden, restructuring partner at Moore Stephens. |
| "Some areas in the UK appear to have an excess capacity of estate agents, which could mean there is not enough business to spread around as property transactions stagnate." | "Some areas in the UK appear to have an excess capacity of estate agents, which could mean there is not enough business to spread around as property transactions stagnate." |
| He also said that plans to ban letting fees to tenants - expected to come in early next year - could dent profits even more. | He also said that plans to ban letting fees to tenants - expected to come in early next year - could dent profits even more. |
| Since 1 May, the UK's largest chain of estate agents, Countrywide, has seen its share price fall by more than 60%. It has issued two profit warnings in the past 12 months. | |
| Rival chain Foxtons has also had problems, reporting a 15% decline in revenues during the first quarter of 2018, and its share price has fallen by nearly 25% since the start of May. | |
| In comparison, shares in Purplebricks, the online agent that charges a flat fee for selling a home rather than a commission, have fallen by 8.2% | |
| On Monday, Purplebricks announced further expansion in North America with the purchase of an online estate agent in Canada. Purplebricks already has operations in Australia and the US. | |