EDITION 12
INSIGHT FEATURE
Back in June, when we released our Q2 property data in our quarterly Property Trends Report, the data reflected a relatively positive story. Overall, the market seemed to be moving towards a normal and balanced state, closer to the more stable conditions of pre-pandemic. From the sky-high levels of the past two years, boosted by the Stamp Duty holiday, demand was falling but remained just above 2019 performance. This indicated that appetite to buy was holding steady. And then at the end of September, just as we prepared to release the Q3 data, Kwasi Kwarteng’s mini-budget happened – and the markets reacted. At the time of writing, we await the new Chancellor’s autumn statement amid talk of tax rises, spending cuts and recession.
For the property industry, the repercussions will be keenly felt. What is clear, however, is that if we are to focus solely on newspaper headlines with their focus on disappearing mortgage products and fears of skyrocketing interest rates, it would be easy to believe that the housing market will shortly be in freefall. While there was and is certainly cause for concern, this is not the full story. And just as we recognise that data alone doesn’t tell the full story, now is one of those times where data will in fact add vital context to a complex and fast-moving scenario.
So let’s look to the last quarter – and hard data. Our latest Property Trends Report suggests that after several years of demand outstripping supply, supply volumes in Q3 actually exceeded demand as SSTC volumes lagged against listings. Listing volumes exceeded the 2019 benchmark for two consecutive months in August and September – the first time in 12 months. In other words, even before the mini-budget, the market dynamics were changing. Among many reasons for this, it is likely fuelled to some degree by still-strong prices pitched against a creeping sense of caution as the cost-of-living bites and interest rates on the rise – August alone saw two increases. In addition, Moneyfacts reported that 935 mortgage products - equal to 26% of all available products – were pulled in the 24 hours following the mini-budget, fixed rates have jumped massively from a historic low, pricing many would-be buyers out completely. This has been especially problematic for first time buyers who have saved and budgeted on the basis of low fixed rates that are simply no longer on offer. With demand slowing even before the shock of 23rd September, estate agents will be justifiably concerned.
But while interest rates are in the gift of the Bank of England, just as tax rises from the government are inevitable, there are some ways that estate agents can seize the initiative. Indeed, at Landmark we believe that there are three key action areas in which estate agents can mobilise now, in the face of market uncertainty:
The pandemic taught us to exercise caution when future-gazing; instead, we turn in times of flux to data, trends and tangible insights. At Landmark, we are in a privileged position, sitting at the heart of the property industry and able to review it and its challenges from the ground, backed by the more birds-eye view that our extensive datasets provide. With this multi-faceted perspective, we are able to identify and respond to the issues that matter most to industry players – and provide a measured account of what is really happening in the market amid the noise of newspaper headlines and punditry. Our data confirms that Q3 completions held steady against the previous quarter and that August/September SSTC were similarly strong - we would expect the majority to convert to completions in the Q4 data.
As we continue to respond to market forces and customer pain points through our innovative products and service, the trends data we faithfully collect and publish each quarter is a helpful temperature check for us all, particularly in this tumultuous period for property. Times may be uncertain once again, but with the right data at their fingertips, estate agents will undoubtedly draw on the innovative thinking and resourcefulness that helped them through the pandemic – and will prevail once again.
Download Landmark’s Q3 2022 Property Trends Report for England, Scotland and Wales here:*Landmark Information Group market research, September 2022 (sample: 503 recent movers in England, Scotland and Wales).
Who's looking for you in 2023?
Ben Marley
With a difficult market ahead it’s vital you have the competitive edge in your town. Google searches and your own website will play a hugely important role in attracting new clients - Google estimates 70% of buying decisions are made BEFORE customers make direct contact - so regular good quality customer reviews are essential to help clients find you and persuade them to make contact. If you’re wondering just how much influence customer reviews have over purchase decisions, then take note:
In research conducted earlier this year, 93% of customers will read online reviews before making a purchase, with 47% spreading the word about a positive experience and a striking 95% shouting from the rooftops about a negative experience.
The research notes that consumers not only want to see reviews on your products and services but they also look for the nitty-gritty details in your customer reviews. Potential customers are interested in learning about the experiences and problems past clients have had, how you’ve responded to complaints, consensus on whether or not the product or service lived up to your claims and so on.
In fact, according to the research 97% of participants said customer reviews factor into their buying decisions. And 92% of consumers hesitate to make a purchase when there are no customer reviews.
What I think is particularly important about these stats is they are based on ALL products and services. If you then factor in that buying decisions in the property sector are far more important than the average then you can imagine the scrutiny with which potential vendors, landlords and clients for mortgages and conveyancing will research your reviews.
So needless to say, reviews are very important but how exactly do they influence purchasing decisions? Here are three ways they do:
79% of customers put as much importance on online reviews as they would on personal recommendations
Word-of-mouth has consistently been a critical consideration when it comes to a business’ credibility. However with the widespread accessibility of the internet today and the growing importance of ecommerce, online reviews now carry as much credibility as a personal recommendation from someone you know so think of online reviews as ‘digital word of mouth’. The important thing to remember here is that consumers will trust a review that is both high-quality and authentic. If it seems ‘spammy’ or paid for it’s likely to have the opposite effect and turn customers off.
On average reviews produce an 18% uplift in sales
This stat is based on all consumer goods but the fact is customers are more likely to purchase from a website that has customer reviews than a website that doesn’t. Displaying recent and frequent reviews on your website gives potential customers more confidence in their purchasing decisions and reduces doubts, leading to a higher conversion rate. They will also help strengthen your brand’s credibility and reliability.
86% of people hesitate to do business with a company if it has negative online reviews.
Unfavourable reviews negatively impact your business. A bad review reflects poorly on your product or service’s quality and reliability. However, there’s a very important caveat to consider here: a complete lack of negative reviews will diminish your credibility as well. All positive 5 star reviews looks inauthentic and not believable whereas one or two minor negative reviews actually highlight that you’re a real business. After all, nobody’s perfect!
The less desirable reviews give you an opportunity to let your customer service skills shine. Being able to resolve the issues presented in negative customer reviews can end up having a positive effect on potential customers in the end because it shows you care about your customers. However, leaving them unanswered will only hurt your reputation and your relationship with your customers.
Quite simply, reviews are a critical factor for customers looking for services in the property space. Reviews help build trust between the customer and the business. A large number of regular reviews combined with great reviews help build immediate trust that will ultimately convert more business.
To find out more about how ESTAS can help you navigate the world of reviews and make sure they are working hard for your business.
Contact Us
Want to be an award winning firm in 2023? Taking part in The ESTAS Awards is easy. Simply sign up to use the ESTAS review platform by 31st December. Invite your 2022 clients to submit a review before the review deadline.
Midnight on 28 th Feb is when the window closes for ‘award’ reviews for the 2023 awards. As long as you have a minimum of 15 reviews from sellers & buyers or 15 from landlords or tenants (if you are entering one of the letting categories) your branch will be eligible for the ESTAS Shortlist for 2023.
After our awards audit in March & April comes the second biggest date in the ESTAS calendar. We’ll be hosting our virtual shortlist events every Friday afternoon throughout May announcing every shortlisted firm around the UK.
The biggest day in the UK residential property industry! Once again we’ll be bringing together the cream of estate agency, property lawyers and mortgage brokers to see who has won the most coveted awards in property in 2023.
Previous Newsletters:
The largest annual event for the UK residential property industry took place on Friday 14th October when the prestigious ESTAS Customer Service Awards sponsored by Coadjute were hosted in London. As with last year agents, conveyancers, mortgage brokers and suppliers gathered together [...]
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The findings are based on the responses of close to 500 UK property professionals. The goal was to better understand the relationship between conveyancers and estate agents, what's affecting it, and most importantly what needs to happen to improve it [...]
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