'Hybrid' agents are “biggest threat” say small agents
Growtion.co, a new growth consultancy created by PropTech start-up veteran Mal McCallion, reports today on the initial results of their national survey of small independent agents with less than 6 branches.
The question asked “Which organisations are the biggest threat to you this year?”
- 31% named 'hybrid' or non-High Street agents, such as Purplebricks and Ewemove, as their biggest concern, ahead of 'portals' on 25%
- 20% named the Government’s oversight of the industry’s regulatory framework as their biggest danger in 2017;
- Only 4% named 'corporate agents' as the biggest threat to small independents’ future, with other local independents being the threat to 8% of respondents. 10% named larger regionals.
McCallion said, “In the week that Purplebricks’ share price rocketed through the 300p mark, triple its launch price just 18 months ago, it’s no surprise that smaller agents see a real challenge from these insurgent organisations.
“Portals are also a significant source of concern for 1-5 branch agents, as they consider Rightmove’s already-promised 2018 price increases and eye Zoopla’s acquisition of their software systems.”
Smaller agencies face multiple challenges from other organisations, as well as a market that is predicted to further tighten in the coming months.
“It’s understandable that these smaller agents identify well-funded and aggressive larger organisations as their chief challenges,” McCallion continued. “However, with some creative thinking now they can help to insulate themselves from these threats.
“Cost-effective high growth strategies, executed quickly and well, will protect an agent from a potential ‘perfect storm’ of competitive, regulatory and inflationary pressures this year. Agents should get creative advice from specialists who have had a wide experience of helping multiple businesses to grow quickly in property. Doing the same and expecting different results is not going to work in this environment.”
Growtion.co was created from a string of successful startup and relaunched high growth small businesses, including Callwell, raterAgent, Zoopla and Primelocation. Already contracted to help a number of property businesses to thrive in the current climate, Growtion.co delivers cost-effective, flexible strategies for high growth, whatever the market segment.