"The UK property market has weathered a fairly difficult period since interest rates first started to climb and so whilst a retraction in estate agency market size is expected in 2024, it certainly doesn’t look to be the notable correction that many so widely predicted"
- Adam Day - eXp UK
The latest research by eXp UK looked at the size of the real estate agent market in the UK based on revenue and how this is forecast to change both this year and next.
The figures show that the total size of the sector sat at £15.325bn in 2023 having increased by 1% versus 2022. However, since December 2021, homebuyers have been hit with increasingly higher mortgage costs as a result of upward trending interest rates and the impact on the market is clear to see.
Between 2021 and 2022 the size of the UK estate agency sector increased by 13.9% before this rate of growth fell to the 1% seen between 2022 and 2023.
What’s more, this total market size based on revenues is expected to decline in 2024, with an estimated -0.4% reduction placing the total market size at £15.265bn.
However, 2024 has already proved to be a more positive year for the market and mortgage approvals and house prices are starting to show signs of consistent increase, with market sentiment buoyed by the first cut to interest rates since 2020 with at least one more likely before the year is out.
As a result of this improving market sentiment, the total market size of the UK estate agency sector is forecast to climb to £15.389bn in 2025. Not only will this mark an annual increase of 0.8%, but it will also see market size sit some 14.5% above that seen in 2021 before the base rate started to climb.
Head of eXp UK, Adam Day, commented: “The UK property market has weathered a fairly difficult period since interest rates first started to climb and so whilst a retraction in estate agency market size is expected in 2024, it certainly doesn’t look to be the notable correction that many so widely predicted.
"2024 has already proved to be a far more positive year, with buyers returning with greater confidence and house prices starting to show signs of positive growth.
"Of course, it takes time for this improving sentiment to filter through and for momentum to build across the sector as a whole, so we expect that the current market uplift won’t become truly apparent until next year.”
