Wiki-TPBC

July 2024

Hello, I'm MrOllie. I wanted to let you know that one or more of your recent contributions have been undone because they appeared to be promotional. Advertising and using Wikipedia as a "soapbox" are against Wikipedia policy and not permitted; Wikipedia articles should be written objectively, using independent sources, and from a neutral perspective. Take a look at the welcome page to learn more about Wikipedia. [1] MrOllie (talk) 13:07, 10 July 2024 (UTC)

Hello MrOllie, The content was not promotional as it provides context to the UK estate agent market. Without the brands, how would it exist? Wikipedia severely lacks any information regarding online estate agents, modern estate agents, cash house buyers, online property auctions etc - updating the estate agent page was only the first step. Please could suggest how I could improve the copy suggested? Wiki-TPBC (talk) 14:35, 10 July 2024 (UTC)

You were obviously promoting particular brands. That is plainly against our policies here. If you don't recognize this core aspect of how Wikipedia is written, I am unable to offer any other suggestions. MrOllie (talk) 14:40, 10 July 2024 (UTC)

I've excluded the brands from the timeline, How is this?

Estate agents

An estate agent is a person or business that arranges the selling, renting or managing of properties and other buildings. Agents specialising in rentals are often referred to as letting or management agents.

Estate agents primarily engage in marketing properties available for sale and handling contract reassignments. Legal documents are usually properared by a solicitor or licensed conveyancer. In Scotland, however, many solicitors also act as estate agents, a practice that is uncommon in England and Wales.

“Estate agent” is the current term used for individuals responsible for managing privately owned, predominantly tenanted properties under single ownership. Alternative titles include factor, steward, or bailiff, depending on the era, region and extent of the property.

Originally, the term referred to a person responsible for managing a landed estate, while those involved in buying and selling homes were called “House Agents,” and those selling land were “Land Agents.” However, in the 20th century, “Estate Agent” began to be used as a generic term. An estate agent is roughly synonymous with the term “real estate broker” in the United States.

Estate agents need to be knowledgeable about their local area, including factors that could affect property prices. For example, the construction of a new road or airport can negatively impact nearby houses, while the closure of a quarry or improvement of an area can increase property values. When advising clients on an asking price, estate agents must be aware of recent sale prices or rental values for comparable properties.

Industry structure

A handful of national residential estate agents chains exist, with the majority being locally or regionally specialised companies.

Several multinational commercial agencies exist, typically Anglo-American, pan-European, or global. These firms all seek to provide the full range of property advisory services, not just agency.

Only a handful of large firms trade in both commercial and residential property.

History

Origins

In 1066, William the Conqueror declared all land belonged to the Crown. Parcels of land were divided among the monarchy, barons, and the Church, with property typically inherited rather than sold.

19th century

Charles Chesterton appeared in a local business directory as a rent collector for William Phillimore and the Phillimore Estate in Kensington, London, marking the birth of the UK’s reportedly oldest estate agency, Chestertons. The London Courrier carried Chesterton’s first advertisement in 1807.

By 1851, the population of England and Wales had more than doubled, rising from just under 18 million to over 36 million. By 1911, approximately 7.6 million new homes had been built, significantly increasing the need for homeowners to buy and sell property.

From 1884, auctioneers and land professionals began diversifying into estate agencies. Herbert Jackson-Stops initially held livestock auctions; Alfred Savill was a surveyor and auctioneer; and Knight Frank & Rutley started as a valuations, surveying and auctions business. They all eventually began selling property.

The first issue of Country Life magazine was published in 1897, featuring an advertisement run by estate agent Walton & Lee. This agent took the prime advertising spot in each edition for so long that Knight Frank bought the agency in 1912 to secure his position.

20th century

In the 1930s, low interest rates and a house boom led to a significant rise in homeownership, with 31% of families owning property compared to just 10% in 1914. As a result, more estate agents began catering to home movers in cities, suburbs and the countryside. Curchods, Connells, and Dixons all became large regional estate agents.

The creation of an affluent class with ‘new money’ in the 1980s, along with Margaret Thatcher’s ‘Right to Buy’ scheme, encouraged more people to buy and sell property. This led to an influx of new agents, including Foxtons, Andrew Reeves, Northfields, Countrywide and Your Move.

21st century

In the early 21st century, leading estate agencies Countrywide, Connells, Halifax, and Royal and SunAlliance collaborated to create Rightmove. Xoopla entered the market in 2008, followed by Agents’ Mutual in 2013, which eventually rebranded as OnTheMarket.

The digital era began 2003, with the launch of HouseNetwork, the first online-only estate agency. This was followed by Hatched in 2006, Housesimple.com in 2007, Tepilo in 2009, eMoov in 2010, Purplebricks in 2012, and easyProperty in 2014.

In 2016, Ed Mead, a former Douglas & Gordon partner, and FRICS, together with Marcus De Ferranti founded Viewber, significantly improving property viewing and visit services for estate agents.

By 2018, The Property Selling Company emerged as one of the first modern corporate estate agencies, aiming to bridge the gap between traditional high street agents and the rapid service of online agencies.

Regulation

In the United Kingdom, residential estate agents are regulated by the Estate Agents Act 1979 as well as the Consumers, Estate Agents, and Redress Act 2007.

In September 2012 CPRs (consumer protection regulation) was introduced which now regulates the residential sales process.

For residential property, there are also a few trade associations for estate agents, INEA The Independent Network of Estate Agents and NAEA Propertymark (formerly known as the National Association of Estate Agents). NAEA Propertymark members can be disciplined for breaches of their code of conduct.

Their disciplinary process includes everything from cautions and warnings right through to more severe penalties of up to £5,000 for each rule breached, and a maximum penalty of €5 million for breaches of the specific anti money-laundering rules.

Some estate agents are members of the Royal Institution of Chartered Surveyors (RICS), the principal body for UK property professionals, dealing with both residential, commercial, and agricultural property.

Members, known as "Chartered Surveyors", are elected based on examination and are required to adhere to a code of conduct, which includes regulations about looking after their clients' money and professional indemnity insurance in case of error or negligence.

The Ombudsman for Estate Agents Scheme, which obtained OFT approval for the Code of Practice for Residential Sales in 2006 and as of December 2018, claims to have over 15,897 sales offices and 14,746 letting offices registered with The Property Ombudsman.

There is a legal requirement to belong to either organisation to trade as an estate agent. Agents can be fined if they are not a member of a redress scheme. The redress scheme was brought in alongside and to govern agents in reference to the HIP (Home Information Pack).

Types of estate agents

Traditional ‘high street’ estate agents

Traditional estate agents are the most common type of estate agents in the UK. These agents are usually localised, with offices run by local estate agents who serve specific areas.

Fees

Estate agents’ fees are generally charged to the seller of the property. These agents operate on a ‘no sale, no fee’ basis, meaning the seller pays nothing if the property does not sell, even though the agent has worked for free.

If the property sells, the estate agent charges a fee running from 1% to 3.5% of the sale price, with the average fee in 2018 being reported as 1.42% including VAT, and the average fee in 2024, being reported as 3% excluding VAT.

For residential properties, estate agents usually charge between 0.5% (for sole agency) and 3% (for multiple agencies) of the sale price plus VAT. Some estate agents may charge additional fees for extra marketing efforts, such as advertisements in newspapers and on websites, but generally, these costs are included in the agent’s fee.

All fees must be clearly agreed upon and documented in the agency agreement before the property is marketed to avoid any confusion about additional changes.

In July 2016, a study by Which? Found the national average estate agent’s fees to be 1.3%, although these fees can vary widely.

For most properties, estate agent fees are typically the second most significant cost associated with moving house in the UK, after stamp duty. High-street agents rarely charge upfront costs for selling or for withdrawing a home from the market, unlike some online estate agents who often require upfront fees without a guarantee of sale.

Lettings agents

Estate agents who handle the lettings of commercial properties typically charge a fee ranging from 7% to 15% of the first year’s rent, in addition to the entire first month’s rent. If two agents are involved and they both charge 10%, the fee is usually split between them. For commercial property sales, known as investment agents, the fee is generally around 1% of the sale price.

The fees charged by residential letting agents vary based on whether the agent manages the property or simply finds new tenants. Prospective tenants may face charges ranging from zero to £300 in non-refundable fees, often labelled as application, administration or processing fees.

There are no specific guidelines for letting agent charges in England and Wales, except that they cannot legally charge a fee for providing a list of properties. In Scotland, all charges to tenants are illegal.

Typically, the first months rent in advance and a refundable bond, usually equal to one month’s rent, are required. Most residential lettings in the UK are governed by Assured Shorthold Tenancy contracts.

These agreements, commonly known as “shorthold” offer less statutory protection compared to older types of residential lettings. Shorthold tenancy agreements are standard contracts available from legal stationers and online for about £1.00, though most letting agents charge around £30 to provide one.

Before a tenant moves into a property, it is important to conduct tenant referencing checks. These checks typically involve running a credit check using data from one of the three main UK providers: Equifax, Experian or Call Credit. This can be done through an in-house system or a managed referencing service.

A reputable lettings agent will also request an employment reference and a previous landlord reference to verify the tenant’s ability to afford the rent and to ensure there are no serious issues with previous tenancies. Additionally, it is important to collect and file proof of identity and proof of residency.

Online estate agents

Since 2003, online estate agents have offered an alternative to traditional fee structures, promoting cheaper, fixed-fee selling packages. These estate agents claim to empower private property sellers by allowing them to market their properties on major property portals like Rightmove and Zoopla — commonly used by traditional high street estate agents — at a fraction of the cost.

Online estate agents assert that they can market properties as effectively as traditional estate agents by leveraging digital marketing techniques and centralising their operations, rather than maintaining physical offices in specific locations.

They typically cover the entire UK, which they claim allowed for reduced fees by eliminating the geographical boundaries that traditional agents face. Additionally, online estate agents often charge fees upfront, unlike traditional agents who generally only charge upon the successful sale of a property.

In February 2010, the Office of Fair Trading (OFT) announced changes in legislation that led to a shift in how homes are sold, enabling cheaper online estate agents to become more established.

Intermediary estate agents and property portals based in the UK have started to encourage collaboration among UK and international estate agents by displaying a wide range of properties on one website, allowing visitors to see an extensive array of UK and overseas properties.

Fees

Online estate agents typically offer various fee structures, which can be paid upfront or upon completion of the sale. The costs for online estate agents can range from £300 to £1,500, with additional payments required throughout the process.

These fees, charges to the seller, generally cover a basic level of service, including creating an online property listing. Many online estate agents charge extra for additional services such as property marketing and house viewings.

Modern estate agents

Modern estate agents, also known as hybrid estate agents, blend the approaches of both traditional and online agents. They use technology-driven data to enhance their local expertise and advertise extensively across the internet, including on major property portals like Rightmove and Zoopla.

These agents emerged as entrepreneurs identified a market gap for commission-free estate agents that could compete in terms of speed, similar to the cash house buying markets.

There are relatively few modern estate agents operating in the UK, and they are often part of larger house-selling groups.

Fees

Modern estate agents are often confused with online estate agents due to their online operations. However, a key difference is that modern estate agents generally do not charge fees to the seller, whereas online estate agents require an upfront fee from the seller.

Modern estate agents cover their costs by taking a percentage of the sale price from the buyer, typically ranging from 1% to 3%. This model allows them to provide services to sellers without upfront fees.

Technology

Estate agents use estate agency software to manage their buying applicants, property viewings, marketing and property sales. Estate agents can use the software to prepare property particulars which are used to advertise the property either online or in print.

They can also record the requirements of a buying applicant and automatically match them against their database of properties. Once a sale is agreed upon, they can manage the chain of linked property sales using the software.

Estate agency software will also help with property marketing by automatically distributing the property details to property portals.

The latest technology has influenced the growth of Online Agents, and the property sector becoming more reliant on the use of technology to appeal to the consumer market. An example of a company conducting this currently is Matterport, who have created a camera that creates digital 3D models and VR floor pans and ultra HD photography.

This has led to digital marketers being able to influence online behaviour in the property market through the use of a Web Portal. By using secure websites, marketers then have the ability to monitor the level of user activity and gain invaluable information to help sellers and estate agents to utilise their marketing and better appeal to the needs of their customers.

In recent years agents have started working together again through systems similar to the USA called MLS (multi listing service). This is where a main agent will take on a property and send details via the most to other local (sub) agents.

The sub agents will market and introduce applicants to the main agent. MLS can achieve more offers, sell a property quicker, and is offered by agents as a premium service.

In the US property data is passed from the agents software by the RETS data feed schema. In the UK the INEA idx (information data exchange) data feed is being adopted by many software to receive sub (mls) property listings back.

In both cases technology via MLS and idx means that sub agents collaborating can populate many more properties into their websites by working together.

Working as an estate agent

Estate agents are responsible for selling and letting commercial and residential properties. Some also manage rental properties on behalf of owners. Typically estate agents can earn between £20,000 and £40,000 per year, working a standard 35 to 40 hour week.

In February 2020, the Regulation of Property Agency (PoPA) report recommended that all estate agents possess a mandatory qualification to obtain a licence to operate. Following this, in 2022, estate agents were encouraged to register their interest with Rightmove for the Level 3 Certificate for Estate and Lettings Agents, a qualification regulated by Ofqual in response to the RoPA report.

There are several pathways to becoming an estate agent, including university courses, apprenticeships, work experience, and training with a professional body.

Having a foundation degree, higher national diploma, or degree in subjects such as surveying, business studies, estate management, property development, urban and land studies can be advantageous. Additionally, completing an apprenticeship in a related field can provide a solid entry point into the profession. Wiki-TPBC (talk) 15:03, 10 July 2024 (UTC)

This is still full of editorializing - promoting an industry in general is also a problem, even if you scrub direct promo of individual companies. Also, if based on the same citations you previously provided, would be rejected on those grounds. We cannot use commercial websites or other forms of advertising as citations on Wikipedia. If you would like to update this article, you should first locate reliable, independent sources - books from academic publishers, peer-reviewed journals, etc. Then you summarize what they say - that means starting over from scratch. MrOllie (talk) 15:11, 10 July 2024 (UTC)

Thank you, I will look into it :) Wiki-TPBC (talk) 15:18, 10 July 2024 (UTC)