Fresh analysis suggests that the UK estate agency sector is set for growth in 2025, with both market size and the number of active businesses forecast to rise – marking a potential turning point after several years of decline.
According to data from GetAgent Exchange, the UK residential estate agency market is expected to reach a total value of £5.8bn this year – a slight increase of 0.71% compared to 2024. The number of estate agency businesses is also set to edge upward, rising from 19,586 to 19,726.
This upward trend is projected to continue into 2026, with market value forecast to grow again – albeit marginally- to £5.85bn, and the number of businesses climbing further to 19,982, a 1.3% year-on-year increase.
These modest gains follow a challenging four-year period between 2020 and 2024, during which sector revenues fell sharply. During that time, total market value dropped from £7.4bn in 2020 to just £5.7bn in 2024 – an average annual decline of 4.9%.
Interestingly, while revenue contracted, the number of estate agency businesses continued to grow—rising from 15,654 in 2020 to nearly 19,600 by 2024. This divergence underscores the increasingly competitive environment, with more agencies vying for a smaller revenue pool.
While the return to growth is welcome news, the data highlights the need for estate agents to diversify their income streams in order to thrive in a crowded marketplace.
That includes generating referral revenue not only through established channels like solicitors, surveyors, and mortgage advisers, but also by embracing newer opportunities—such as out-of-area applicant referrals, where buyers are selling homes outside an agent’s core territory.
As the market stabilises, those who innovate and adapt stand the best chance of turning marginal growth into meaningful success.
Colby Short, co-founder and CEO of GetAgent Exchange, commented: “The property market as a whole has held its own in recent years, despite the myriad of challenges we’ve faced. But it’s fair to say that it’s been a more challenging period for the estate agency sector specifically, with sector revenues declining consistently, largely driven by a continued increase in competition within the sector.
“The reality is that this competition is fiercer than ever, with more businesses chasing incremental gains.
“In this environment, additional revenue streams are too often overlooked, despite their potential to bolster earnings.
“Those who embrace the full spectrum of revenue opportunities, including monetising their out-of-area applicant leads, will be well placed as the market continues its gradual recovery.”
Read the orginal article: https://propertyindustryeye.com/estate-agency-set-for-growth-report-finds/
