Estate agency market size set to increase 3.2% in 2023
Analysis by Nested, the modern estate agent, has revealed that the UK estate agent industry is expected to grow by 3.2% in 2023, as it continues to recover from the initial decline caused by the pandemic.
Nested analysed historic data on the size of the sector and the estimated number of agency businesses operating within it, to see just how the sector has performed in recent years.
The figures show that in terms of total market size, the estate agency sector peaked in 2019 at £14.316bn, with some 21,232 estate agency businesses thought to have been operational at the time, resulting in an average revenue per agency of £674,270.
When the pandemic struck, the total size of the sector retracted over two consecutive years to £11.719bn by 2021, the lowest level since 2014, shaving £120,000 from the average estate agents estimated revenue in the process.
The good news is that 2022 saw a reversal in this downward trend, with the size of the estate agent market increasing by 10.1% to £12.906bn. The number of estate agent businesses also grew by 2.3%, with the average revenue per an estate agent up 7.7%.
Despite the latter stages of 2022 bringing a greater degree of market uncertainty, the estate agency sector looks set to grow further in 2023 as stability has returned, with total market size hitting an estimated £13.3bn – a 3.2% increase on 2022.
The figures also estimate that the number of estate agents operating within the sector could climb by 2.2% to 22,098, the highest number since 2013.
Despite more competition in the market, the average revenue per agent is also estimated to increase by 1% to £602,874.
So while the sector is yet to return to its pre-pandemic peak, it’s undoubtedly heading in the right direction which will be welcome news for those operating within it.
Alice Bullard, managing director at Nested, the modern estate agent, commented: “The UK property market may have boomed during the pandemic, but the estate agency sector certainly felt the impact, with the overall market size of the industry declining quite notably between 2019 and 2021.
However, this tide has started to turn and despite the uncertainty of the wider economic backdrop, we’ve seen a strong level of growth over the last year and a strong start to 2023. There’s no doubt that the self-employed estate agency model has helped facilitate this growth, providing a platform for those who may otherwise have struggled to remain operational.
While the market is yet to return to the giddy heights it reached in the early days of the pandemic, the current upward trajectory speaks volumes about the resilience of the sector and the tenacity of those working within it.”
