Broking London: How the Brokerage Model is Transforming the UK Property Landscape

 
01/07/2025
5 min read

In 2025, London’s residential property market is experiencing a quiet revolution—one that’s redrawing the lines of how estate agents operate, how deals are brokered, and who truly represents the buyer and the seller.

A recent Bloomberg headline put it bluntly: “London gets a taste of New York’s cut-throat real estate culture.” And it’s true—what was once a rigid, corporate-dominated industry has rapidly morphed into a dynamic ecosystem powered by independent brokers, hybrid models, and tech-savvy agents willing to upend tradition in favour of freedom and flexibility.

But what does this mean for buyers, sellers, and the wider property industry? And where does regulation fit into this rapidly evolving space?

The Rise of the Brokerage Model in the UK

Historically, London’s property market has been dominated by large, traditional estate agencies with rigid hierarchies, branded shopfronts, and standardised commission structures. But that model is being chipped away from the inside out.

In recent years, many of the most talented agents have left these corporates behind, often just after receiving their annual bonus, to strike out on their own or join new “brokerage model” firms. Unlike traditional estate agencies, these broker-led firms offer agents:

  • Autonomy over their own client lists
     
  • Flexible working conditions
     
  • Higher commission splits
     
  • Freedom to represent buyers, sellers, or both
     

And it’s working. Brokerages such as DDRE Global, founded by celebrity agent Daniel Daggers (and featured on Netflix’s Buying London), are leading the charge. But DDRE is far from alone. Others making waves include:

  • The London Broker
     
  • Moveli
     
  • London House
     
  • eXp Realty
     
  • AZ Real Estate
     
  • Harding Green
     
  • Tedworth
     

These firms operate on different terms, but the philosophy is the same: the agent becomes the brand, not the shop window.

What Makes the Brokerage Model Different?

The brokerage model is designed to empower individual agents to act as trusted advisers at every stage of a client’s property journey. This often includes:

  • Acting as both buying and selling agents
     
  • Negotiating commission splits directly with other brokers
     
  • Setting custom fee structures
     
  • Operating without a centralised office or corporate oversight
     

This flexibility allows agents to serve clients more holistically—but it also introduces potential conflicts of interest, especially when representing both sides of a transaction.

And while the new model is exciting for many, it raises a crucial question: Do clients understand who is representing whom?

Buyer Representation: A Grey Area

Traditionally, UK estate agents act for the seller, not the buyer. But in today’s London market, it’s increasingly common for a selling agent to expand their role to help buyers find other properties—even if those properties aren't listed by their own agency.

This trend means that:

  • Agents may receive a “split fee” for introducing a buyer to another agent’s listing (typically around 0.5% + VAT).
     
  • Buyers may not always be clearly informed that their “agent” is being paid by the seller or another party.
     
  • The line between buying and selling agents has become increasingly blurred.
     

A YouGov survey commissioned by First In The Door found that 49% of property buyers wrongly believed that estate agents represent both parties equally.

This confusion is not just inconvenient—it can lead to misaligned expectations, conflicts of interest, and legal disputes, especially in high-value transactions.

The Call for Regulation

With new brokerages appearing on the scene and independent agents flooding the market, calls for regulation of property agents have grown louder.

Although the UK has long resisted strict oversight of estate agents, momentum is building. The 2019 Lord Best Report outlined a path forward, calling for:

  • Mandatory licensing and qualification of estate agents
     
  • Greater transparency around fees and commissions
     
  • Stronger consumer protections
     

In November 2024, Housing Minister Matthew Pennycook reaffirmed the government’s commitment to revisiting the Lord Best Report. And just last month, during committee discussions on the Renters’ Rights Bill, Baroness Taylor of Stevenage confirmed that the government will soon lay out its full position on property agent regulation.

If the Renters’ Rights Bill passes into law this year, we may finally see regulatory reform take centre stage.

Why Many Agents Welcome Regulation

Surprisingly, many of the best agents in the industry support regulation. Why? Because it would:

  • Weed out unqualified or unscrupulous operators
     
  • Create consistency in how clients are represented
     
  • Reinforce professionalism and trust
     

For reputable agents already operating transparently, regulation would level the playing field and help build long-term credibility with clients.

Transparency Around Fees and Roles Is Critical

In a deregulated environment with evolving agent roles, transparency is everything.

Clients should never be left wondering:

  • Who is my agent really working for?
     
  • How is my agent getting paid?
     
  • Are there commission-sharing agreements I’m not aware of?
     
  • Am I being represented in the negotiation process?
     

Clarity here is not just good practice—it’s a legal and ethical imperative.

Implications for Buyers and Sellers

As a buyer or seller navigating the new world of brokerage-driven property sales in London, it’s essential to understand your rights and protect your interests.

Here are a few practical steps:

1. Ask the Right Questions

  • Is this agent representing me or the other party?
     
  • How are they being paid?
     
  • What happens if another agent gets involved?
     

2. Get Agreements in Writing

If you're retaining an agent to represent you as a buyer or seller, make sure there's a clear written agreement outlining:

  • Duties
     
  • Commission terms
     
  • Exclusivity (if any)
     
  • Disclosure obligations
     

3. Know Your Legal Position

Remember: even the most charming broker is a businessperson first. Make sure you understand:

  • Your contractual obligations
     
  • When you might owe commission
     
  • How disputes can be resolved
     

Case Study: Sotheby’s Goes Hybrid

Interestingly, even traditional real estate powerhouses like Sotheby’s have begun adopting elements of the brokerage model. Over the past two years, the brand has revamped how its agents are paid and given them greater freedom to run their books and manage deals more independently.

This shift suggests that the broker model is not just a trend—it’s the future of the industry.

What Comes Next?

The evolution of property broking in London is still underway. But it’s clear that:

  • The brokerage model is here to stay
     
  • The market is becoming increasingly complex
     
  • Buyers and sellers must be more informed and cautious than ever
     

With the government likely to address regulation in the coming year, this is a pivotal time for the property industry.

Navigating Property Deals in 2025? Let Parachute Law Be Your Legal Anchor.

Whether you're buying a luxury flat in Kensington or selling a period home in Hackney, the landscape of estate agency is more complicated than ever. Don’t enter the London property market blind.

At Parachute Law, we offer:

Clear legal reviews of estate agency contracts and broker agreements
Representation for buyers or sellers to protect your interests
Dispute resolution services for commission or misrepresentation claims
Advice on dual agency situations and potential conflicts of interest

Call us at 0207 183 4547
Email: thelegalteam@parachutelaw.co.uk
Visit:www.parachutelaw.co.uk