ALMOST 10 estate agents are expected to go bust throughout the UK every week this year, according to a new study.
Family-run property management business Apropos by DJ Alexander compiled the report from official data and found a total of 371 business involved in the real estate business had entered insolvency proceedings in the first nine months of this year – 348 in England and Wales and 23 in Scotland.
If the trend continued, the company said the figure would equate to 498 for the entire year, with the Scottish figure likely to be 30 firms which, although almost double last year’s figure is the second-lowest annual number over the past decade, indicating that the sector’s health in Scotland is reasonably good.
David Alexander, managing director of Apropos by DJ Alexander, said the figures highlight the joint impact on the traditional estate agency sector of a declining High Street and a changing marketplace.
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“The problems faced by the High Street are impacting on all businesses regardless of sector as we can see from the recent closure of Thomas Cook, the problems facing Mothercare, and the numerous restaurant chains which have closed their doors over the last year,” he said.
“These are issues of long leases, high rents and rates and declining footfall.”
Alexander said the specific issue for the sector was remaining relevant in a market that is shifting relentlessly online.
“Ensuring you offer an appropriate and vital service to your clients is now not just important it is essential,” he said.
“Customers under 40 run their lives through their phones, tablets and computers. This group would never consider going into an estate agents’ office for information and they are the future, so the market must shift to cater for this group.
“The days when estate agents had an office on every High Street have gone but the need for personal service remains high.
“Clients still want the meet and greet personal experience but backed up by a powerful, innovative online platform available 24 hours a day to answer their questions and meet their immediate needs.”
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