The number of UK estate agents declaring bankruptcy has soared by almost a third, with nearly 300 companies collapsing last year.
The figures underline the gloom surrounding Britain's property market, with home sales at their lowest in more than a decade, hitting incomes for estate agents.
According to figures from the Insolvency Office, 286 UK property agents closed down in the 12 months to July 31, a 32% increase from 216 a year earlier.
According to international tax and advisory firm Forbis Mathers, the highest borrowing costs in 15 years are impacting not only rents but also sales, with investors finding better returns than buy-to-let investments. That's what he said.
Rebecca Dacre, partner at Forbis Mathers, said: Rising interest rates have proven to be a significant deterrent to virtually everyone climbing the housing ladder.
“Small local businesses can be placed at a significant disadvantage against larger regional rivals and the growing number of PEs. [private equity]Backed integrated companies can invest more marketing dollars to attract orders that are still coming in. ”
UK residential property transactions fell 12% to 861,210 in the year to June 30, the lowest level in more than a decade, according to HMRC data.
But despite the 'scars from Liz Truss's mini-budget still lingering' in September 2022, the property market is showing positive signs, which could lead to a sharp rise in interest rates, according to Foxtons analysis. and led to the collapse of mortgage approvals.
The company said that after a year of stable interest rates, the quarter-point rate cut in August this year has given buyers more certainty to return to the market. Mortgage approvals are rising and average UK house prices have risen by 2.3% in the past 11 months, after falling 1.8% in the 12 months following the truss scandal.
If traditional companies are struggling, Rightmove, the UK's biggest online property portal, is meanwhile considering the approach of a £6.2bn acquisition from Rupert Murdoch's REA Group. The deadline for formal offers is today at 5pm.
