Transaction delays are nonetheless the largest headache for UK property brokers, with 74% citing extended timescales and chain uncertainty as a serious subject, up from 62% final yr, new analysis reveals.
With common transactions now taking 120 days, gradual completions are hitting purchaser and vendor confidence, growing fall-throughs, and squeezing company income, in keeping with Landmark Info Group’s newest Property Company Market Analysis Report.
Regardless of these challenges, 74% of brokers report robust turnover. Nevertheless, over half (52%) say it has been a financially powerful yr, up from 24% in 2024, as financial uncertainty, rising compliance calls for, and operational prices chew.
The Q3 Property Developments Report provides that hypothesis forward of the Autumn Funds, notably round potential property tax modifications, has prompted some patrons and sellers to delay choices, slowing market exercise.
Various brokers view expertise because the path to easing these pressures, with 94% of respondents anticipating administrative duties to be automated inside 5 years, liberating brokers to give attention to shoppers and income technology.
9 in ten (90%) have already began exploring AI instruments, and practically eight in ten (79%) have carried out them to enhance effectivity. AI can also be anticipated to change into commonplace, notably for onboarding, compliance, and administrative duties throughout the subsequent 5 years, though brokers stay cautious about its use in direct shopper interactions.
The report additionally highlights a notable shift in enterprise fashions. The standard “no sale, no price” method continues to say no, now utilized by simply 32% of brokers. Most now favour part-upfront cost, half on completion (65%) or full-upfront fashions (31%), reflecting better due diligence earlier within the course of, enabling patrons to make extra knowledgeable choices earlier within the dwelling shopping for course of, and a drive to cut back fall-throughs.
Different findings embody:
+ 87% count on the extent of regulation within the {industry} to extend over the following 5 years.
+ 82% discover it tough to maintain up with the most recent fraud, AML and cybersecurity threats.
+ 93% say the Renters’ Rights Act has impacted their function to some and better extent.
+ 85% imagine AI will change into commonplace in property company inside 5 years.
+ 68% plan to make use of AI to help market value determinations, 63% for mapping, and round 60% for sanctions and AML checks.
Taken collectively, the findings level to an {industry} underneath stress however prepared for change. Transaction occasions stay a defining problem, with the common completion taking round 120 days – 60% longer than in 2007 – however there’s rising momentum behind the {industry}’s Venture 28: A Constitution for Sooner, Extra Sure Property Transactions.
The initiative has set a goal of decreasing transaction occasions down to twenty-eight days from sale agreed to alternate, reflecting a rising urge for food throughout the {industry} for sensible options and providing a transparent path to a quicker, extra environment friendly and resilient property market.
Ben Robinson, divisional director of Landmark Property Company Providers, mentioned: “The property company sector faces a multi-faceted set of challenges. Financial headwinds and transactional delays proceed to check company resilience. But there’s trigger for optimism. The rising adoption of automation and AI is starting to unlock actual productiveness features and new approaches to charging shoppers and utilizing upfront knowledge are yielding robust outcomes.
“The following section should give attention to cross-industry collaboration, reminiscent of via Venture 28, to sort out these challenges and ship better certainty to dwelling patrons and sellers and enhance property company profitability.”
A 3rd of brokers nonetheless unprepared for Renters’ Rights Act rollout
