It’s likely there will be more mergers and acquisitions among estate agencies in 2024, Tom Goodman, managing director of credit reporting agency, Vouch, has predicted.
Mergers and acquisitions commonly become more common in times of uncertainty, as more at-risk agencies decide to exit the market while they can.
Goodman said: “With enough capital this is a proven method of quickly and efficiently amassing scale. We’ve already seen the beginning of this trend; with Dexters acquisition of first Marsh and Parsons and later Life Residential, Foxtons picking up Ludlow Thompson and some rumoured Leaders Romans growth activity.
“I predict that 2024 will see the pace pick up on this but a key factor will be around successful retention of not just landlords and stock, but also key staff responsible for prior success within the incumbent business.
“Despite a rise in consolidations, there will always be room for independents, with many landlords still preferring to opt for a smaller, local agent. A rise in corporate M&As in 2024 could actually be an opportunity for boutique agencies to underscore their client USPs.”
In May 2023 online agent PurpleBricks, once worth £1.4 billion, was sold to Strike for £1, underlying the perilous nature of the industry.