Online agents have increased their market share, now representing almost 8% of all exchanges.
A new report, out this morning, says that online firms increased their market share by 13% between the first and second quarter of this year.
The TwentyCi Property and Homemover Report – cited in last week’s Purplebricks annual results and its national newspaper ads at the weekend – said that 15,986 sellers exchanged when listed with an online agent in the last quarter.
However, the number of exchanges remains tiny compared with the 192,653 by high street agents.
The report says that the growth has been driven by significant investment in advertising, and more local property experts.
There are major regional differences in online market share, but in all regions in England and Wales they have grown market share.
In Yorkshire and the Humber, online firms have grown market share, year on year, by 51.58%.
In inner London, their market share growth is 47.34%, and in Wales and the north-west it is almost the same story with market share growth at just over 45% in both regions.
In the east midlands and east of England, market share growth is around 44% and 43% respectively.
Annual market share growth stands at around 39% and 38% in the north-east and west midlands; at 33% in the south-west; at 23% in Greater London; and at some 17% in the south-east.
Today’s report does not specifically mention Purplebricks, or indeed name any agent.
Colin Bradshaw, TwentyCi’s chief customer officer, said: “The growth in market share for online agents continues unabated, with this group now representing nearly 8% of all exchanges.
“It is interesting to note that almost all of this growth has been in properties below £1m.
“Logic might dictate that a fixed-price service would be more attractive to sellers of higher-priced properties, but perhaps this group of vendors is motivated by factors other than just price.”
This morning’s report by no means confines itself to looking at online agents.
It also reports that new instructions are up 7% year on year. It also says that there is no significant price discounting on asking prices.
It does, however, find that in the second quarter of this year, exchanges were down in most regions, other than the north-east, Yorkshire and the Humber, and in Scotland.
The report also says that one third of all property listings in the second quarter were for rental homes. Almost 60% of property listings in London were for rental properties.
TwentyCi claims its quarterly housing reports are based on factual data covering 99.6% of both sales and rentals.
The full report, with plenty of regional information, is available at this link: