The UK’s real estate industry is on the verge of a significant transformation. Across Europe, self-employed property consultants supported by proptech firms like iad have already disrupted the traditional model, leading to more agile, tech-driven services. Although the UK has been slower to adopt these changes, it’s becoming increasingly clear that the traditional high street estate agency model is losing ground. With technology rapidly evolving and consumer expectations shifting, the future of estate agency is set to look very different.
As Henry Ford once said, “If you always do what you’ve always done, you’ll always get what you’ve always got.” The UK estate agency model, which has remained relatively unchanged for decades, is now at a crossroads—one where innovation and adaptability are key to future success.
The Self-Employed Model: A European Success Story
In countries like France, Spain, and Portugal, the self-employed property consultant model has gained significant traction. Statista reports that nearly 40% of property transactions in France are now managed by self-employed agents, with iad and other firms leading the charge. This new approach combines the flexibility of self-employment with cutting-edge technology, offering a customer-focused service that’s both efficient and cost-effective.
In contrast, the UK remains attached to its traditional ways, with a 2022 Savills study indicating that 85% of the market is still controlled by traditional estate agencies. However, even in the UK, there has been a notable rise in the number of self-employed consultants, with a 12% increase between 2019 and 2021. This trend signals that, like in Europe, the UK is slowly shifting towards a more flexible and independent model.
The Traditional Model: Why It’s Losing Ground
The high street estate agency model has long been a fixture in the UK, characterised by branded offices, company cars, and fixed fees. While familiar, this model comes with high overheads, making it increasingly difficult to meet the demands of today’s digitally savvy consumers.
In contrast, self-employed consultants can offer a more streamlined service by leveraging technology to reduce costs and provide better value for money. Free from the constraints of physical offices and rigid working hours, they can focus on delivering a personalised experience for their clients. This approach is not only more competitive on price but also aligns better with the needs of modern consumers.
Proptech: The Driving Force Behind Change
The role of proptech—technology designed to improve and streamline real estate processes—cannot be overstated in this transformation. Proptech platforms like iad provide self-employed agents with the tools they need to manage their business more effectively, from digital marketing and automated valuations to customer relationship management (CRM) systems. According to CB Insights, investment in proptech globally reached $23.75 billion in 2022, up from $18 billion the previous year. This surge in investment highlights the growing influence of technology in real estate.
A PwC and Urban Land Institute report from 2020 found that 90% of real estate professionals believe that technology is transforming the industry, particularly in terms of improving transaction efficiency and enhancing the customer experience. From virtual property tours to AI-driven marketing strategies, proptech is helping agents offer a faster, more transparent service.
How Proptech Benefits Agents and Clients Alike
Self-employed agents benefit enormously from proptech solutions, which enable them to manage their workload more efficiently. With access to automated property valuations, virtual tours, and advanced marketing tools, agents can deliver a more modern and user-friendly service. This not only saves time but also offers clients greater convenience.
Clients are increasingly demanding digital solutions in their property transactions. A 2021 Zoopla survey found that 80% of homebuyers now begin their property search online, and 66% prefer agents who offer virtual tours and digital communication. Proptech helps self-employed consultants meet these expectations, providing a service that is both accessible and transparent.
Flexibility and Personalisation: A Winning Formula
The flexibility of the self-employed model is one of its greatest advantages. In the traditional model, estate agents are often constrained by office hours and tight schedules, limiting the time they can dedicate to each client. Self-employed consultants, however, have more control over their workload, allowing them to offer a more personalised and tailored service to their clients.
A study by the Harvard Business Review found that 57% of consumers are willing to pay more for a personalised service, and this is certainly applicable to the real estate market. Self-employed consultants, with their flexible schedules and ability to focus more intensively on individual clients, can provide a higher level of personalisation that traditional agents often struggle to match. This makes them particularly attractive to clients seeking a more hands-on, bespoke approach to buying or selling a property.
Learning from Other Industries: The Disruptors
The transformation we’re seeing in estate agency mirrors changes that have occurred in other industries disrupted by technology and the gig economy. Uber revolutionised transport by offering flexible working arrangements for drivers and a tech-driven, customer-centric service for users. Similarly, Airbnb has redefined hospitality, leveraging technology to connect property owners directly with customers, cutting out the middleman.
Just as these platforms revolutionised their respective industries, self-employed consultants supported by proptech are set to do the same in real estate. The trend is clear: consumers want convenience, transparency, and control over their transactions. By meeting these demands, self-employed consultants are carving out a new path in the property market, much like Uber and Airbnb did in their fields.
The UK Market: Ripe for Disruption
While the UK has been slower to adopt the self-employed, tech-driven model, the signs of change are unmistakable. The rise of proptech platforms and the increasing popularity of flexible working arrangements are paving the way for a major shift in how real estate transactions are conducted.
According to a 2022 report by EY, the number of self-employed workers in the UK increased by 17% from 2018 to 2022, highlighting the growing appetite for self-employment across a range of industries. This rise is a reflection of broader trends in the workforce, where individuals are increasingly seeking autonomy, flexibility, and the ability to build their own businesses. Estate agency is no exception, and the shift towards self-employed consultants is only set to accelerate.
The Benefits of the Self-Employed Model for Property Consultants
For estate agents, the appeal of the self-employed model is clear. It offers greater flexibility, autonomy, and the opportunity to earn more, free from the limitations of traditional agency structures. Consultants can build their own brands, set their own schedules, and focus on the clients and markets that interest them most.
Moreover, by leveraging proptech, self-employed agents can operate with the same (if not better) efficiency as traditional agencies—without the high overheads. This makes the model particularly attractive to those who want to provide a more customer-focused service, without being tied down by corporate structures and processes.
A Look at the Numbers: The Growth of Proptech
The role of proptech in driving this change cannot be overstated. According to Deloitte’s 2023 Real Estate Outlook, 87% of real estate companies are now investing in proptech to streamline their operations and meet the demands of modern consumers. This includes everything from virtual property tours and AI-driven valuations to blockchain solutions for more secure transactions.
In Europe, firms like iad have been able to leverage this technology to capture significant market share. In France, where the self-employed model is already well-established, iad operates with over 17,000 consultants and handles a large proportion of residential property transactions. This is a clear indication of how the self-employed model, supported by the right technology, can scale rapidly and successfully.
The Consumer Perspective: What Buyers and Sellers Want
From the consumer’s point of view, the advantages of working with a self-employed consultant are clear. According to a Rightmove survey, 82% of homebuyers now expect more transparency and quicker communication throughout the property process. Traditional agencies, with their bureaucratic processes and rigid office hours, often struggle to meet these expectations.
In contrast, self-employed consultants are better positioned to respond quickly, provide real-time updates, and offer a more personalised service. Clients can enjoy the convenience of digital communication, virtual property tours, and faster access to essential information—whether they’re buying or selling. This is particularly important in today’s fast-paced property market, where being able to act quickly can make all the difference.
Conclusion: The Estate Agency Revolution is Here
The future of estate agency is clear: self-employed consultants, backed by proptech, are poised to transform the market. While the traditional high street model still dominates in the UK, its days are numbered. As more agents and clients embrace the flexibility, efficiency, and personalisation that the self-employed model offers, we will see a fundamental shift in how real estate transactions are conducted.
For estate agents, the message is simple: embrace the change, leverage technology, and take advantage of the opportunities that self-employment offers. As Henry Ford’s famous quote reminds us, sticking to the old ways won’t bring new results. The real estate industry is evolving, and those who adapt to these changes will be the ones who thrive in the years ahead.
The revolution has already begun—are you ready to be part of it?
Sources:
1. Statista – Market share of self-employed agents in France (2023)
2. Savills Report – Estate agency trends in the UK (2022)
3. CB Insights – Global investment in proptech (2022)
4. Zoopla Survey – Homebuyer preferences for digital tools (2021)
5. PwC and Urban Land Institute – Impact of technology on real estate (2020)
6. Harvard Business Review – Consumer demand for personalised services (2021)
- EY Report – Growth of self-employment in the UK (2022)
- Deloitte 2023 Real Estate Outlook – Proptech investment and trends (2023)
- Rightmove Survey – Homebuyer expectations (2022)