Only one in ten new build homes completed in England during 2024/25 reached the open market, according to data published by Alto this week, raising questions about the structural challenges facing estate agencies.
Of an estimated 200,000 new properties built during the period, just 21,261 entered the sales channel where buyers search and agents transact. The remainder were allocated to build-to-rent portfolios, developer direct sales, or affordable housing schemes.
Regional variations were significant. In London, the proportion of new builds reaching the open market stood at 2.12%, whilst the North West recorded 7.51%. The South West, the strongest-performing region, reached 17%.
Impact on estate agency operations
The data highlights a structural reallocation of housing supply that has been developing over several years. Build-to-rent portfolios are typically held long-term by institutional investors, removing properties from the competitive open market permanently. This trend mirrors broader shifts in property finance, with institutional investors increasingly backing multi-property portfolios.
According to Alto’s analysis, agents are losing approximately eight hours per week to tasks that could be automated. This equates to ten full working weeks annually per person spent on non-revenue generating activities.
Research suggests that between one third and half of a typical negotiator’s week in many agencies is spent on administrative work rather than winning instructions. Tasks include chasing solicitors, qualifying leads manually, processing certificates, and managing transaction administration.
Operational efficiency concerns
The analysis suggests that many agencies are responding to market pressures by attempting to increase headcount, when the underlying issue relates to operational processes. The research indicates that core tasks such as creating listings, progressing sales, renewing certificates, qualifying leads, and reconciling accounts often consume significant time from staff who could be client-facing.
In a market with high transaction volumes, operational inefficiencies can be offset by deal flow. However, a structurally tighter market with reduced available stock removes this buffer, according to the analysis.
The data also points to underutilisation of existing customer databases. Agencies with extensive records of applicants, vendors, landlords, and transaction histories possess information on potential future instructions, but many lack the systems to surface these opportunities effectively.
Market outlook
The structural changes in housing supply show no signs of reversing. Build-to-rent development continues to attract institutional capital, whilst compliance requirements for estate agents continue to increase. The challenges facing the sector come as regulatory and administrative burdens across the property sector intensify.
The analysis suggests that agencies with the capacity to streamline operations and leverage existing data may be better positioned to compete for a diminishing pool of open market instructions. The shift towards institutional ownership of new build stock represents a permanent change to the market structure rather than a cyclical phenomenon.
