Estate agents are continuing to see a steady stream of sellers entering the market but growing buyer caution is making it harder to convert activity into completed transactions, latest research from GetAgent reveals.
The survey of UK estate agents found that more than half (53%) believe the residential sales market is weaker than it was a year ago.
Just one in five agents said conditions have improved, while 29% believe the market is broadly unchanged.
Despite the challenging backdrop, seller activity remains relatively resilient. Nearly half of agents (48%) reported an improvement in the quality of seller leads compared with last year, while only 24% said lead quality had deteriorated.
FALLING BUYER QUALITY
The picture is markedly different on the buyer side. Some 58% of agents said buyer lead quality has worsened over the last 12 months, with only 15% reporting an improvement.
As a result, generating motivated buyers has become the biggest challenge facing agents, cited by 30% of respondents. A further 25% said converting viewings into offers was their biggest hurdle, while 20% highlighted progressing agreed sales through to completion.
The tougher market conditions have not stopped agents investing in their businesses. Some 87% said they are continuing to invest, with AI and technology tools the most popular area of expenditure, followed by brand awareness, local advertising and social media marketing.
The research also found that almost eight in ten agents believe lead generation is now more important than it was a year ago, with 60% saying it has become significantly more important.
COST PER LEAD
Colby Short (main picture, inset), Co-Founder and CEO of GetAgent, says: “Seller intent remains relatively healthy and instructions are broadly consistent year on year, but buyer uncertainty is making it harder for agents to get transactions over the line.
“That’s putting greater emphasis on strong lead generation. With competition for instructions high and sales taking longer to complete, quality opportunities have become even more valuable.
“We’re seeing that ourselves. The cost of generating vendor leads has increased significantly, but we’re continuing to invest more than ever because we know there are still motivated sellers in the market and agents are continuing to get deals done despite the tougher conditions.
“It’s also encouraging to see so many agents adapting, making the most of every opportunity and continuing to invest in their own businesses.”
