The UK property industry is worth over £5.2 trillion and is still growing as estate agency businesses continue to open across the UK.1
To get a better understanding of the industry, we address eight key questions:
1. What is an Estate Agency?
Estate Agencies work on behalf of clients by selling, managing or renting buildings and land. Estate agents act as the intermediary between people that are buying and people that are selling property.
This also extends to lettings and includes both commercial and residential real estate. They advertise on behalf of someone else, namely, the property owner(s).
2. What are the different types of Estate Agency businesses?
There are a large variety of different Estate Agency businesses across the UK. Some sell and let both property and land for the residential market, available to occupy for non-business means.
This includes apartments and houses of all shapes and sizes. Others sell and let property and land for the commercial market for business purposes, such as offices and shops.
Letting and Selling
The lettings market is big business for estate agents with over 20% of UK households living in private rental accommodation in the UK alone.2
During the lettings process, the estate agent facilitates an agreement between client (property owner) and tenant (property renter) for the property rental.
Estate agents can offer a variety of services to facilitate this process including:
- Sourcing tenants for landlords
- Administrative duties including creating tenancy agreements and checking references
- Collecting rent
- Management services which can involve taking on the daily responsibilities for the properties saving the landlord time.
For many Estate Agents, selling property is their bread and butter, with agents receiving a small fee for each property sold, ranging between 0.5% to 3% of the property value.3 Some agencies operate as generalists while others work as specialists selling to niche markets for example, the luxury property market.
3. How many people are employed in the property industry in the UK?
Just over 1% of the UK force is employed in these roles with 336,000 people working in Estate Agency in the UK. Jobs include estate agents, administrators, maintenance workers and property managers alike.4
4. How many Estate Agency franchises are there in the UK?
There are thousands of estate agencies right across the UK, many operating online as well as from high street stores. With over 120 franchises for sale on Reed Commercial alone, this number is set to grow in the next few years.
5. What are the responsibilities of an Estate Agency franchise owner?
A franchise owners duties vary depending on the type of business. He or she is responsible for the business as whole.
The franchisor will provide a level of support to ensure that all new franchises hit the ground running which often includes:
- Marketing and media support
- Use of their technology and systems
- A premises to operate from or the means to run the business virtually
6. What are the benefits of owning a property franchise?
- Opportunity to be the boss and work as franchise business owner
- Implementing a tested business model
- Part of a recognisable brand that drives customers to the business
- Support from the franchisor
- Earning potential that can range from tens of thousands right up to (and sometimes beyond) the £1m pound mark per annum
- Opportunity to change the working week to suit lifestyle and personal commitments
7. What does the future look like for estate agency businesses?
The current debate surrounding the estate agency market lies with online business models vs those on the high street. The good news is that property franchises are still growing in number, with 3,000 in London alone and the number is set to increase.5 With demand for property remaining high, the future looks bright for property franchise owners.
8. How can you buy a property franchise?
Browse through hundreds of property franchises, find the right business for you and submit an equiry to the franchisor expressing your interest. Need a better understanding of the franchising process? Take a look at our six part guide to learn more about franchising now.
Interested in finding a property franchise near you? Find property franchises for sale here.
1 Life at Work, reed.co.uk
2 PwC English Housing Survey, 2013
3 thisismoney.co.uk, 2014
4 ONS, 2015
5 housesimple.com, 2016Tags: estate agents, property franchise