The number of estate agents and auctioneers in the UK has fallen by 8,600 in nine months, according to employment data analysed by prime London agency Jefferies London, as the sector increasingly adopts artificial intelligence for administrative functions.
Data from Statista shows the workforce declined from 62,400 in the final quarter of 2024 to 57,700 in the first quarter of 2025, before falling further to 53,800 by the second quarter of 2025, representing a 14% reduction.
The decline coincides with wider adoption of AI technology across the property sector, particularly for process-driven and back-office functions. The shift mirrors broader changes in the UK estate agency sector, where firms are reassessing operational models.
Automation of routine tasks
Jefferies London, which has developed an AI assistant called J.E.S.S.E., reported that the system handled more than 3,000 enquiries during the first three months of 2026, managing sales calls, buyer qualification and viewing bookings. The firm estimates the technology saves each agent approximately 10 hours per week.
Despite the broader industry trend, Jefferies London has increased its own headcount by 30% in 2025 and plans to nearly double its partner agent numbers by the end of 2026.
Chief executive Damien Jefferies said: “There is a growing perception that AI is going to replace estate agents and, in many parts of the industry, we’re already seeing businesses reduce headcount and lean more heavily on technology.”
He added: “We built J.E.S.S.E. because we wanted to give our partner agents every possible advantage, not because we wanted to replace them. It takes care of the more repetitive and time-consuming parts of the job, allowing our partner agents to focus on the things that matter most, namely building relationships, advising clients and negotiating deals.”
Market implications
The workforce reduction raises questions about the future structure of the estate agency sector, particularly as economic conditions and interest rate uncertainty continue to affect the property market.
While AI adoption may reduce operational costs for agencies, the data suggests a significant restructuring is underway, with technology increasingly handling tasks previously performed by human staff. The emphasis from Jefferies London on maintaining human involvement in higher-value transactions indicates a potential bifurcation in the market between automated and relationship-driven service models.