A massive media spend by online agents has helped them grow their market share from 1.1% to 3.7%.
The conclusion is from GetAgent, but according to City analyst William Packer this morning, the share of listings on Rightmove is larger, at 6%. In a new note to investors, Packer said that Rightmove regarded online agents as “more friends than frenemy”.
GetAgent has published a fuller version of its research into the market, after causing a stir by giving a short presentation at the Proptech conference.
It says that the growth in market share came between January 2015 and January this year.
All the major online agents raised their media spend last year, compared with the year before, with the exception of Tepilo, which cut its spend from £2.7m to £1.3m.
By far the biggest spender was Purplebricks, which according to media analyst Nielsen upped its spend from £8.5m in 2015 to £10.2m last year.
Noticeably, YOPA raised its media spend from £560,000 in 2015 to £5.4m last year.
The GetAgent research also reiterates its findings as to sales rates over the 14-month period to February.
GetAgent claims that Purplebricks completed on 57% of its listings, HouseSimple on 58%, while eMoov and Tepilo completed on 51% and 48% respectively.
A number of vendors went on to instruct a high street agent. The highest proportion was 17% of Tepilo customers.
GetAgent also found that those who switched to a high street agent tended to do so quite quickly – almost 10% within a fortnight, and the highest proportion, nearly 14%, within 42-56 days.
In addition, it surveyed a small sample of 45 online customers who expressed their views about their use of online agents.
A spokesperson for GetAgent agreed that the sample was small, but felt the answers – which included a view that the online agent used appeared to lose interest once the listing was secured – were interesting and worth sharing.
The firm plans to repeat the exercise. Most of the information, she said, was derived from a study of Land Registry and property portal data over a 14-month period.
It certainly makes for interesting reading:
In this morning’s note from Packer, of Exane BNP Paribas, investors were told that online agents’ share of listings on Rightmove is now 6%, up from 3% in 2014.