The first part of the latest Voice of the Agent 2025 report has revealed a mixed outlook for the UK property sector.
While confidence among home movers remains strong, agents are navigating an increasingly complex landscape shaped by economic uncertainty, shifting government policies and evolving consumer behaviours.
Confidence in the market is split. While home movers remain positive, agents are grappling with the effects of the 2024 Budget. More people expect house prices to rise in 2025 than fall or stay the same.
The report also reveals that 40% of agents feel the October Budget took the market in the wrong direction, whereas 31% believe it was a step forward. This uncertainty places estate agents in a crucial position to restore trust and stability in the sector.
STRONG VENDOR GROWTH
More vendors entered the market in 2024, with 76% of agents reporting increased instructions.
However, the challenge remains in securing new business, as 54% of agents cite vendor acquisition as their biggest hurdle.
Looking ahead, 57% expect vendor numbers to grow in 2025, but 31% anticipate a decline.
Property values are also likely to rise, with 51% of agents predicting an increase and only 9% forecasting a decrease.
The prime property market (£500k+) continues to be a significant source of revenue, making up 24% of instructions but delivering 59% of agents’ fee income. Meanwhile, the average estate agent’s fee remains at 1.18%.
LANDLORD DECLINE
The lettings sector faces challenges, with 55% of agents reporting declining landlord numbers in 2024. Despite this, 28% expect growth in 2025, highlighting opportunities for agencies that can adapt and innovate.
Rental values are forecast to rise, with 68% of agents predicting increases, compared to just 7% who expect a decline. Landlords are increasingly influenced by non-property professionals and social media, making marketing and relationship-building critical.
Lettings agents’ average fully managed fee is 11.1%, while let-only services command 9.2%. Keeping up with new technology remains a significant challenge for 36% of agents.
TOP CONCERNS
Beyond market trends, agents are dealing with broader industry pressures. Economic uncertainty, talent shortages, and cybersecurity threats rank as the top concerns for 2025.
The average agent competes against 12.1 rival firms, making efficiency and differentiation more critical than ever. While 43% of agents say they manage resources more effectively than a year ago, 31% feel they are less effective, highlighting the need for ongoing innovation and support.
HIGH-GROWTH AGENTS
Marketing investment is increasing, particularly among high-growth agencies, which allocate 15.2% of income to marketing – 23% more than the industry average. In 2024, 41% of agents increased their marketing budgets, and 48% plan further increases in 2025.
Digital and traditional channels remain critical, with social media, word of mouth, direct mail, and review sites proving particularly effective.
Rightmove continues to dominate the portal space, while Facebook, Instagram, LinkedIn, and TikTok are the leading social media platforms for agency engagement.
The report can be downloaded HERE.
The Voice of the Agent 2025 – Part Two Now Open
Following these insights, The Voice of the Agent 2025 now moves into Part Two: Portals, Proptech, AI, and Sustainability.
This phase will explore the impact of emerging technologies on estate agency operations, the role of AI in improving efficiency and customer experience, and how sustainability trends shape buyer and investor decisions.
Agents are invited to participate and help shape the conversation on the future of technology and sustainability in real estate.
To participate, click HERE.
