Companies in the Residential Estate Agents industry act as intermediaries when a residential property is bought, sold, rented or leased in the UK. Typically, estate agents earn income via fixed flat rates or commissions and transaction fees related to the selling price charged to interested parties. Estate agents also provide clients with value-added ancillary services through which they can earn sufficient income, including specialist advisory services, contract appraisals, property valuation and escrow services. Over the five years through 2024-25, residential real estate agent’s is expected to contract at a compound annual rate of 4.7% to £5.8 billion. In 2020-21, a temporary hiatus in housing market activity during the spring lockdown left a gap in estate agents' income statements, made worse by unfavourable tax reform for buy-to-let property investors. Activity rebounded over 2021-22 as the release of pent-up demand and stimulatory policies restored and elevated property transaction levels. However, over 2023-24, revenue tanked by 14.4% as successive rises in the bank rate, eventually landing at 5.25% in August 2023, increased mortgage rates across the UK and significantly reduced the market for residential property transactions and estate agent revenue. In 2024-25, revenue is expected to inch upwards by 0.7%, as interest rates fell to 5% in August 2024; interest rates are forecast to drop at least once more in 2024-25, making borrowing more affordable and increasing transaction volumes. According to HMRC, there were 90,210 UK residential transactions in August 2024, a 5% increase on August 2023. There is optimism as household disposable incomes and consumer confidence climb, meaning a bounce back in the housing market is imminent. Over the five years through 2029-30, residential real estate agent’s revenue is expected to expand at a compound annual rate of 1.4% to £6.2 billion. Beyond an envisaged recovery phase, competitive pressures from the proliferation of online-only and hybrid estate agents will intensify, challenging traditional agencies. Due to increasing council taxes on second homes, landlords may sell some of their portfolios, increasing the supply of houses to be transacted and boosting revenue. House prices are forecast to trend upwards in the medium term, increasing transaction commissions and benefitting estate agents.

This statistic presents the market capitalization value of selected online and traditional real estate agencies in the United Kingdom (UK) as of 2017. The leader of the market in terms of traditional model, Countrywide, reported the market capitalization of 370 million British pounds, as of May 2017. Purplebricks, the leading online real estate agency, recorded market value of 780 million British pounds in the same period.

The PropTech agent tool market is projected to grow from $13.24 billion in 2025 to $24.02 billion by 2033, exhibiting a CAGR of 9.52% during the forecast period. The rising adoption of digital technologies in the real estate sector, increasing demand for efficient agent tools for lead generation, customer relationship management, and transaction management, and growing awareness of the benefits of PropTech solutions among real estate professionals are fueling market growth. Key trends shaping the market include the proliferation of cloud-based agent tools, offering flexibility and accessibility; the integration of artificial intelligence and machine learning to enhance tool capabilities; and the growing popularity of hybrid deployment models, providing a balance of customization and cost-effectiveness. Additionally, the increasing number of real estate startups offering innovative agent tools and the expanding adoption of PropTech solutions in emerging markets are expected to drive future market expansion. Among the key players in the market are HomeSnap, Homelight, Zillow, CoStar Group, AppFolio, Realtor.com, Propti, Purplebricks, Compass, Opendoor, Redfin, Trulia, PropertyNest, Buildium, and Realty Income Corporation. Recent developments include: Recent developments in the PropTech Agent Tool Market have showcased significant advancements and shifts among key players such as Zillow, Redfin, and Opendoor. Zillow has been expanding its offerings, leveraging data analytics to enhance user experience while increasing its market share. In parallel, Redfin has reported a growth in home sales as it embraces technology to streamline real estate transactions. Opendoor continues to innovate its acquisition strategies, allowing for quicker sales processes, which is reshaping market dynamics. There have been notable mergers and acquisitions within the sector as well, with HomeLight acquiring certain assets from other startups, reinforcing its position. Moreover, Realtor.com and CoStar Group are collaborating on improved property listings, enhancing visibility for agents. Market valuations for these companies are on the rise, with firms like Compass and AppFolio experiencing increased investments, indicating growing confidence in the digital transformation of real estate processes. This influx of capital is impacting the overall competitive landscape, pushing companies to adopt more sophisticated technologies and offerings to meet evolving consumer demands and expectations within the industry.. Key drivers for this market are: AI-driven property management solutions, Enhanced virtual property tours; Integration with smart home technology; Data analytics for market insights; Automation in transaction processes. Potential restraints include: Technological advancements in real estate, Increasing demand for automation; Enhanced user experience expectations; Growing investment in PropTech; Rise of data analytics usage.