The timing of technology adoption in the property sector can determine competitive positioning as significantly as the technology itself, according to industry analysis examining the strategic approaches taken by UK property businesses.
Mike Day, managing director of Integra Property Services, has outlined four distinct adoption strategies observed in the sector: first to market, early adopters, fast followers, and laggards. Each approach carries different risk profiles and potential returns for property businesses.
First mover experiences
Rightmove’s entry as the first major UK property portal demonstrated the potential advantages of early market entry. The company established a network effect that competitors have struggled to replicate, creating a dominant market position.
However, first mover status does not guarantee success. Zillow’s iBuyer programme in the US, which attempted algorithm-driven home buying at scale, was withdrawn after the model proved financially unsustainable. The company absorbed the full costs of testing an unproven concept.
Purplebricks entered the market as an early adopter of the hybrid estate agency model, scaling a fixed-fee digital approach nationally before it became mainstream. The company’s strategy reshaped consumer expectations and prompted traditional agencies to modernise their services.
Fast follower approach
Day cited his experience as a director at Connells in 2000, when the company established a conveyancing operation after observing competitor Countrywide’s entry into the sector. Connells opted to manage a panel of conveyancers rather than acquire conveyancing firms directly, avoiding the fixed costs and market volume risks associated with ownership.
According to Day, the approach generated immediate returns through referral fees, faster transaction times, and reduced abortive work, adding millions of pounds to the company’s results.
Many UK estate agencies have applied the fast follower strategy to virtual viewings, AI-driven valuations, and digital onboarding, implementing refined versions of technologies after observing early adopters’ experiences.
Delayed adoption
Smaller high street agencies often delay adopting technologies such as automated anti-money laundering checks or digital signatures until regulatory requirements or customer expectations necessitate change. These businesses typically compete on local knowledge, personal service, and lower overheads rather than technological capability.
Day noted that the pace of change is accelerating with the focus on artificial intelligence, shortening the timeframe between first movers and laggards in technology adoption.
The analysis suggests no single strategy guarantees success across the property sector, with optimal timing dependent on individual business characteristics, customer base, and risk tolerance.
