With the installation of a new government, many estate agents are keen to understand how the upcoming years will shape the industry. Predictions and strategic advice from experienced professionals provide valuable insights into what the future might hold and how agents can best prepare themselves to thrive in this evolving landscape.
Market Outlook for the Next Few Years
Chris Buckler, founder of The Estate Agency, shares a realistic yet cautious perspective. "I think the market's going to remain pretty tough for the next few years," he predicts. Several key factors will influence this outlook:
1. Impact on Property Prices Near Good Schools:
If the government proceeds with policies affecting private schools, there might be significant repercussions on property prices in areas with high-quality primary schools. "People will start overpaying by 5-10% in these areas because investing an extra £100,000 on a property could be seen as a better deal compared to paying for private education," explains Buckler.
2. Stamp Duty Changes for Overseas Buyers:
Another potential shift is an increase in stamp duty for overseas buyers, particularly in London. "When London sneezes, everyone kind of catches a cold," warns Buckler, highlighting how changes in the capital's property market can ripple out across the country.
3. Capping New Builds for Non-Domestic Buyers:
The government also aims to cap the percentage of new builds sold to non-domestic buyers at 50%. This policy, successfully implemented in Canada and Australia, could lead to an oversupply of new build properties, increasing competition for resales.
Opportunities in a Tough Market
Despite these challenges, Buckler remains optimistic about the opportunities for self-employed estate agents. "That's the very best time to get into self-employed estate agency," he asserts. The tough market conditions create a prime environment for agents to establish themselves and build a resilient business.
Steph Walker, Co-Founder of TAUK, echoes this sentiment. "People always need to move home," she says, emphasising the ongoing demand for estate agency services. She advises agents to take the opportunity to become hyper-local experts. "Really embed yourself, really take the opportunity now to become that hyper-local famous estate agent in a very tight location," Walker suggests.
Government Housing Pledges and Their Implications
Lee O’Brien, Manager Director of iad UK, another experienced agent, points out the ambitious housing pledges from the new government. "One and a half million new homes over four years is wildly ambitious," he notes. Achieving such a target would require significant changes in policies and processes. While the impact might not be immediate, agents should prepare for the long-term effects on the market.
Strategic Advice for Estate Agents
1. Adapt to Market Changes:
Agents need to stay informed about policy changes and adapt their strategies accordingly. The new government’s policies on education, stamp duty, and housing supply will shape market dynamics, and being proactive can offer a competitive edge.
2. Embrace Self-Employment:
The current market conditions are ideal for agents considering the self-employed model. Establishing oneself now, during a period of market adjustment, can lead to greater success when the market stabilises.
3. Leverage Technology:
Utilising advanced tools like Rex CRM can enhance efficiency and client service. Features such as automated buyer match profiles, personalised communication, and mobile accessibility enable agents to stay connected and responsive, crucial in a competitive market.
4. Focus on Hyper-Local Expertise:
Building a strong local presence can differentiate agents from their competitors. By becoming the go-to expert in a specific area, agents can cultivate a loyal client base and gain a reputation for exceptional service.
Final Thoughts
The new government's policies will undoubtedly influence the estate agency landscape. However, by staying informed, adapting strategies, and leveraging technology, estate agents can navigate these changes successfully. As Walker puts it, "Make life easier for yourself" by taking advantage of the current market conditions to establish a robust business foundation.
For more insights on how to leverage technology and navigate market changes, check out our articles on Rex AI advancements and the benefits of self-employed estate agency models.
