"The estate agency sector faces a multi-faceted set of challenges. Economic headwinds and transactional delays continue to test agency resilience. Yet there is cause for optimism"
- Ben Robinson - Landmark Estate Agency Services
New research from Landmark Information Group’s latest Estate Agency Market Research Report shows transaction delays continue to be the biggest concern for UK estate agents.
Around 74% of respondents cited protracted transaction times affecting chain certainty as a major issue, up from 62% last year. With average completion times now reaching 120 days, the slow pace is undermining buyer and seller confidence, increasing fall-throughs, and putting pressure on agency profitability.
Despite these delays, 74% of agents report strong turnover. However, more than half (52%, up from 24% in 2024) said it had been a financially challenging year, with economic uncertainty, rising compliance requirements, and operational costs eroding margins. The Autumn Budget has added to this uncertainty, with speculation over potential property tax changes prompting some buyers and sellers to delay decisions and slowing market activity, according to Landmark Information Group’s Q3 Property Trends Report.
Technology is viewed as a key solution for many in the sector. Nearly all respondents (94%) expect administrative tasks to be automated within five years, allowing agents to focus on clients and revenue-generating activities. Nine in ten (90%) have already begun exploring AI tools, and almost eight in ten (79%) have implemented them to improve efficiency. AI is expected to become commonplace, particularly for onboarding, compliance, and administrative work, although agents remain cautious about its use in direct client interactions.
The research also highlights a shift in business models. The traditional “no sale, no fee” approach has declined and is now used by just 32% of agents. Most agents now favour part-upfront, part-on-completion models (65%) or full-upfront payment (31%). These approaches encourage due diligence earlier in the process, help buyers make informed decisions sooner, and reduce fall-throughs.
Other notable findings include:
87% of agents expect regulation in the industry to increase over the next five years.
82% find it difficult to keep up with the latest fraud, AML, and cybersecurity threats.
93% say the Renters’ Rights Act has impacted their role to some or a greater extent.
85% believe AI will become commonplace in estate agency within five years.
68% plan to use AI to support market appraisals, 63% for mapping, and around 60% for sanctions and AML checks.
The findings indicate an industry under pressure but prepared for change. Average transaction times now take 120 days, 60% longer than in 2007. However, momentum is building behind Project 28: A Charter for Faster, More Certain Property Transactions, which aims to reduce the time from sale agreed to exchange to just 28 days. This initiative reflects a broad appetite across the sector for practical solutions to create a faster, more efficient, and resilient property market.
Ben Robinson, divisional director of Landmark Estate Agency Services, said, “The estate agency sector faces a multi-faceted set of challenges. Economic headwinds and transactional delays continue to test agency resilience. Yet there is cause for optimism."
"The growing adoption of automation and AI is beginning to unlock real productivity gains and new approaches to charging clients and using upfront data are yielding strong results. The next phase must focus on cross-industry collaboration, such as through Project 28, to tackle these challenges and deliver greater certainty to home buyers and sellers and improve estate agency profitability.”
