Traditional estate agents in the past have dominated the property industry, however its now being severely disrupted by PropTech.
High street estate agents have failed to innovate, provide a satisfactory service or the best price to customers, so PropTech services, including the likes of Rightmove, Zoopla and PurpleBricks, are now filling the gap.
These PropTech companies have been fuelled on by constantly-connected consumers, used to using the Ubers and Airbnb’s of the world, wanting an easier way to buy, sell and rent property without dealing with an expensive middle man.
Growth in the private rented sector and the relative ease of ‘DIY’ letting, online lettings platforms have a big opportunity to tap into a huge and growing market. The private rental market has doubled in the past decade, with 46% of 25-34-year olds now living in private rentals – compared with just 27% in 2006-2007.
There are also fintech pioneers delivering services to property owners – such as Homeyfe (insurance) and Habito (mortgages).
Together, the PropTech and fintech sectors can provide a complete end to end service for the consumer that rivals traditional providers.
However, In the UK we’re nearing saturation for newcomers embarking on the standard online agency model.
That’s unless PropTech leaders combine with others to create something new and collaborate to combine their different strengths, such as Realla and Coyote, or Datscha and ourselves.
A recent survey found 88% of landlords and 81% of tenants wished they could rate and review their counterpart online.
As such, the PropTech market will likely widen to include more uses and services around and beyond the physical bricks and mortar assets.
The market is slowly changing, and the industry is being disrupted in a similar way that other industries have been with the end result being more choice, improved service and better prices for customers.
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