London lessons: The evolution of Buyer's Agents in the UK and their potential in New Zealand

I recently had the pleasure of a week schmoozing in my favorite old stomping ground: London.

As one of the most desirable and sophisticated property markets in the world it's not surprising that it also attracts and develops some incredible talent. During my seven years in London, I had the good fortune to meet so many brilliant people in the property industry; genuine movers and shakers who work at a global level and are constantly seeking - and seizing - the next trend or opportunity.

I caught up with a few of my old friends and colleagues in the property world, including Marcus Bradbury Ross MRICS of CBRE Private Office, Nicholas Ayre at Home Fusion and Richard Marsh at RM Property Advisors; all incredibly skilled and well-known property buying experts in Prime Central London and greater London. We discussed the commonalities of our clients' needs whether it be London or Auckland, and how they have spent years developing the best practices and processes to help their clients find the right home. It was a good reminder that while the concept of a buyer's agent is relatively new in Australia, and exceptionally fresh here in New Zealand, it has been a well established model in the UK for almost 40 years now.

Today, London's buyer's agents may have a client seeking a two-bedroom terrace in Tooting for £500,000 or a stately home in Hampstead for £5,000,000

The idea of a buyer's agent, also known as a property finder in the UK, has rapidly grown in popularity. In the UK, the practice of representing buyers exclusively emerged in the late 1980s, primarily catering to wealthy international clients and expatriates seeking the creme de la creme of London homes. These early buying agents offered a bespoke service, leveraging their local knowledge and connections to secure some of London's finest properties. Like Martelli & Co Buyer's Agents, the UK buyers agents of 2024 offer services catering to all different requirements and budgets. The themes remain the same: working with buyers who want the choice to have their own representation, want access to more of the market, and want a professional in their corner spotting the red flags and guiding them to the right home for the right price. Today, London's buyer's agents may have a client seeking a two-bedroom terrace in Tooting for £500,000 or a stately home in Hampstead for £5,000,000.

The model gained traction in Australia during the 2000s, driven by a booming property market and increasing competition among buyers. It is no secret that the USA has buyer's agents and sales agents in a large percentage of transactions, though their incredibly high fees, and subsequent fee splits, do raise some eyebrows. Despite the glamorous TV shows exhibiting luxury homes in Sydney and LA, many of the buyer's agents you will meet in these markets today are helping your regular first-time buyer or busy family.

There is no doubt that these same factors will drive interest in buyers agents here in New Zealand, and it's incredibly rewarding to be a part of this evolution.