UK estate agencies face a tougher battle for income despite forecasts pointing to marginal market growth in 2025 and 2026, new analysis from GetAgent Exchange reveals.
The study shows the residential estate agency sector is expected to reach a market size of £5.8 billion in 2025, a 0.71% uplift on 2024.
The number of businesses is also set to rise, from 19,586 to 19,726. Growth is forecast to continue into 2026, when the market could edge up by a further 0.7% to £5.85 billion, with almost 20,000 agencies in operation.
But the headline growth masks a difficult recent period. Between 2020 and 2024, sector revenues fell every year, shrinking by nearly £1.7 billion to £5.7 billion, while the number of agencies climbed by almost 4,000.
INCREASED COMPETITION
The divergence highlights the pressure of increasing competition, with more firms chasing a smaller share of the market.
The research warns that while growth may be returning, agencies need to be more proactive in maximising every available income stream.
That includes not only solicitor, surveyor, or financial adviser referrals, but also out-of-area applicant referrals, where buyers are selling beyond an agent’s patch.
With the sector entering what appears to be a slow but steady recovery, agents who adapt and diversify are the most likely to withstand the pressures of a more crowded marketplace.
CHALLENGING PERIOD
Colby Short, co-founder and CEO of GetAgent Exchange, says: “The property market as a whole has held its own in recent years, despite the myriad of challenges we’ve faced.
“But it’s fair to say that it’s been a more challenging period for the estate agency sector specifically, with sector revenues declining consistently, largely driven by a continued increase in competition within the sector.
“The reality is that this competition is fiercer than ever, with more businesses chasing incremental gains.
“In this environment, additional revenue streams are too often overlooked, despite their potential to bolster earnings.
“Those who embrace the full spectrum of revenue opportunities, including monetising their out-of-area applicant leads, will be well placed as the market continues its gradual recovery.”
