Nearly a fifth of UK estate agents at risk of insolvency

Nearly a fifth of UK estate agents are at real risk of insolvency, according to a report published by accountancy firm, Moore Stephens. 

The research shows that 4,928 estate agents out of a total 25,560house on blue – 19 per cent of estate agents in the UK – are currently exhibiting warning signs that indicate they are at risk of going insolvent.

Contributory factors cited are:

  • competition from online estate agencies with low-cost, fixed-fee models
  • the growth in property websites undermining the role of estate agents
  • smaller high street agents squeezed by larger national businesses

Added to this, property sales in the UK are still struggling to climb back to their peak before the financial crisis.

Mike Finch, restructuring and insolvency partner at Moore Stephens, says: “Many areas across the UK are oversaturated with estate agents, and competition is becoming too much for some smaller businesses.”

Read more: 19% of UK estate agents are at risk of going bust