Shellshock reaction as estate agents take in Osborne’s move on industry

The announcement by George Osborne that online-only estate agents are to be encouraged, possibly at the expense of the high street model, appears to have caught the entire industry by surprise.

Those hardly knowing what to say yesterday included online and high street agents, but most of all those with, or planning, a hybrid model.

For example, online agents, who were canvassed for reaction by EYE, were so incredulous that they asked to be sent links.

Some of the usual suspects had still not sent in their comments by last night.

High street agents re-tweeted our story yesterday, but none suggested they had known of the move beforehand.

Meanwhile, the National Association of Estate Agents has reacted carefully to the revelation, reported yesterday on EYE, that the Government wants to encourage online-only estate agents.

Ministers, led by Chancellor George Osborne, are to call for evidence in the new year.

Yesterday, NAEA managing director Mark Hayward told EYE that local knowledge remains paramount.

He said: “Bringing innovation and competition to the market is a good thing, and we encourage and support anything that can help bring down costs for consumers. Consumers should have choice when buying and selling property.

“Many high street agents have very strong online presence and work in tandem with estate agency portals.

“High street agents have networks of contacts who are searching for property and offer a variety of different techniques and channels.

“High street agents understand local markets and will advise on the right tools for individual clients.

“While strong online presence is essential, it is most effective when teamed with expertise and local knowledge.”

Last night, one of the online agents invited to comment was Alex Gosling, of HouseSimple.

He told EYE: “Even the Government is recognising that the high street estate agent model is outdated and punitive.

“High street agents have had it their own way for far too long, charging the consumer a level of fees that is simply not justified.

“The online estate agent sector is shaking up the market and giving consumers what they want – a simple, quick, innovative and inexpensive service.

“Our customers are saving an average of more than £5,000 on a house sale compared to a high street agent, for a service that is almost identical.

“The online estate agent sector is set to grow rapidly over the next 12 months, offering a cheaper but almost identical service to the high street.

“It will be interesting to see how the high street agents will respond to the competition, but they will have to respond because the consumer won’t accept fee levels as they stand.

“Estate agency is going to change forever, and that can only be good news for consumers.”

Originally posted here.

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