Family run property management firm, Apropos by DJ Alexander, released surprising predictions that in Britain, by the end of 2019, approximately 10 estate agencies will have gone bust each week.
Apropos analysed data and saw that in the first 9 months of the year, 371 businesses in the selling homes sector have entered formal insolvency proceedings; this made up of 348 in England and Wales and 23 in Scotland.
When predicting for the end of the year, based on results to date, the firm suggest altogether numbers would reach 498. These figures would mean an estimate of 464 estate agencies entering insolvency in England and Wales, being the highest annual figure since 2014 when it reached 522. Alternatively, for Scotland, the annual figure is likely to be 30 – double what it was in 2018, but in terms of historical comparisons, being the second lowest annual number in the last decade suggesting reasonably good health of the sector in Scotland.
David Alexander, MD of Apropos by DJ Alexander stresses that these figures show the impact a declining high street is having on the traditional estate agency sector.
‘’The specific issue for the estate agency sector is how to remain 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. 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.’’