Referrals are now the most important source of buyer enquiries for prime residential agents, according to new research that suggests the UK’s luxury property market is becoming increasingly relationship-driven.
A survey of prime residential agents conducted by AgentWise found that 80% identify referrals as a leading source of buyer enquiries, making it the most important route to new business.
Existing client databases and professional relationships ranked joint second, each cited by 60% of respondents.
By comparison, just 30% of agents said property portals were among their most important sources of buyer enquiries.
AGENT-TO-AGENT RELATIONSHIPS
The findings suggest that while online portals remain an important marketing channel, they are playing a less dominant role within the prime market than in the wider residential sector.
Instead, agents are increasingly relying on trusted networks, personal recommendations and collaboration with fellow professionals to connect buyers with high-value properties.
The growing importance of agent-to-agent relationships was reflected throughout the survey.
Seven in ten respondents said cross-agency relationships are now significantly more important than they were five years ago, while a further 23% said they had become slightly more important.
Not a single respondent believed such relationships had become less valuable.
The increased emphasis on collaboration is also generating transactions.
COLLABORATIVE RELATIONSHIPS
Half of agents surveyed said they had completed between three and five sales during the past year with the assistance of another agent, while 20% completed six or more deals through collaborative relationships.
The survey also points to a growing appetite for off-market transactions.
Almost two-thirds (62%) of respondents believe off-market opportunities are becoming more common, compared with just 3% who believe they are declining.
Eric Corsaletti (main picture), Founder of AgentWise, says: “For years, the portal was viewed as the centre of the property market. Today, particularly at the prime end, it has become just one part of a much broader ecosystem.
“The reality is that many of the best buyers are now being introduced through referrals, trusted professional relationships and collaboration between agents.”
PERSONAL RECOMMENDATIONS
Corsaletti says the trend reflects the increasingly specialist and international nature of the prime housing market.
He adds: “What our survey also demonstrates is that collaboration is no longer a niche part of the industry, it’s becoming a core part of how business gets done.
“As markets become more international and buyers become more specific in what they’re looking for, the ability to quickly identify and connect with the right people is becoming every bit as important as marketing the property itself.”
The findings suggest that in the upper tiers of the housing market, personal networks and industry relationships are becoming just as valuable as traditional marketing channels in securing buyers and completing transactions.
