Estate agency sector set for growth in 2025, but rising competition continues to squeeze revenues
The latest analysis from GetAgent Exchange has found that 2025 is set to bring renewed growth for the UK estate agency sector, with both market size and the number of businesses expected to increase, before continuing on an upward trajectory into 2026.
GetAgent Exchange analysed the latest and historic data on the market size of the UK residential real estate agents sector, based on revenue, as well as the number of businesses operating within the sector and what the landscape is forecast to look like by the end of next year.
The data shows that the sector is forecast to reach a total market size of £5.8 billion in 2025, marking a marginal uplift of 0.71 percent compared to 2024. At the same time, the number of residential estate agency businesses operating across the UK is also expected to rise to 19,726 from 19,586 in 2024.
This trend is expected to carry forward into 2026, when market size is forecast to increase again by a marginally lower 0.7 percent to £5.85 billion, while the total number of businesses climbs by a further 1.3 percent to 19,982.
However, these modest improvements come against the backdrop of a much tougher period between 2020 and 2024, when market revenues fell consistently each year.
Over this period, revenues declined by an average of 4.9% per year, dropping from £7.4 billion in 2020 to just £5.7 billion in 2024. In contrast, the number of businesses in operation has continued to grow steadily, climbing from 15,654 in 2020 to 19,586 in 2024.
This divergence highlights the increasingly competitive landscape in which agents are operating, with a growing number of firms fighting over a shrinking pool of revenue.
Even as growth begins to return, the data underlines that it is more important than ever for agents to maximise every available income stream.
This includes referral revenues, not just through traditional solicitor, surveyor, or financial adviser partnerships, but also through out-of-area applicant referrals, where buyers are looking to sell outside an agent's local area.
Colby Short, co-founder and CEO of GetAgent Exchange, commented:
"The property market as a whole has held its own in recent years, despite the myriad of challenges we've faced. But it's fair to say that it's been a more challenging period for the estate agency sector specifically, with sector revenues declining consistently, largely driven by a continued increase in competition within the sector.
The reality is that this competition is fiercer than ever, with more businesses chasing incremental gains.
In this environment, additional revenue streams are too often overlooked, despite their potential to bolster earnings.
Those who embrace the full spectrum of revenue opportunities, including monetising their out-of-area applicant leads, will be well placed as the market continues its gradual recovery."
