Nearly two thirds of estate agents remain undeterred and unaffected by Brexit

Independent findings from 172 Dezrez estate agents suggests most do not see the need for a bespoke Brexit strategy, while the majority see property prices remain static since referendum

LONDON, 8th November, 2016, Dezrez, a cloud-based estate agency software provider, today announced the results of its second Brexit survey which finds that 64% of estate agents haven’t previously developed a Brexit plan or strategy, and still do not see the need for one.

The survey, comprised of responses from 172 estate agents, suggests that they have become more apathetic to Brexit since the United Kingdom’s decision to leave the European Union in June. Dezrez findings released at the time found that 22% of estate agents saw ‘no need’ for a Brexit plan, with this figure increasing by over 40% as of November 2016.

Justin Morris, CEO, Dezrez, said: “What’s notable here is that, despite the general media sentiment, and doom and gloom stories, the amount of estate agents with a Brexit strategy has technically reduced. When you consider that estate agents have not experienced Brexit-related fluctuations in the amount of buyers, or a change in house prices, it’s easy to understand their approach. It’s very much business as usual for most.”

Key findings include: 

• Of those surveyed, 53% don’t believe Brexit has had any significant impact on their business to date, while 40% suggest that Brexit has had some negative effect
• Similarly, 55% haven’t seen any change in property prices since the Brexit vote, while 37% suggest the vote has caused some turbulence in prices which has led to lost sales 
• 60% say that there has been no change in the volume of first-time buyers since Brexit, while 17% have seen an increase
• Meanwhile, 65% suggest that there has been no change in the amount of foreign investors, while 10% have seen an increase
• 63% say they have seen similar levels of deal completion since Brexit, with 28% seeing a slightly higher proportion of withdrawals

The findings also suggest there is no clear picture amongst the estate agent community about which party – if any – has benefited most from Brexit. Buyers (33%) were thought to be the greatest beneficiaries, followed by sellers (10%), landlords (7%) and tenants (5%). 

In the long term, only 23% of respondents believed that Brexit would have a long-term effect on their businesses, while 43% believed business would remain as usual, with 34% unsure of the effects.

“It’s fair to say there is still a picture of genuine uncertainty” said Morris. “Looking on the bright side, the vast majority are unaffected, with a relatively small proportion seeing negative Brexit-related effects. The key will be how the markets respond once Article 50 is triggered.” 

He continues: “What’s important is that estate agents don’t wait to see some effect. They need to be proactive. For instance, the technology sector is largely pursuing its aims of digital transformation as a means of future-proofing their business. We’ve seen similar signs amongst estate agents, who are seeking to integrate their online and bricks-and-mortar offerings to deliver a more comprehensive customer experience, while delivering a fuller suite of services such as integration with financial advisers. There are higher margins to be had for those who are thinking more laterally about their business, Brexit or not.”

Dezrez conducted a survey amongst 172 of its customers in November 2016