YOPA has raised £16m in equity fundraising, with Savills taking a minority stake.
Savills has invested a “substantial amount” in so-called ‘hybrid’ online estate agency YOPA Property.
YOPA has raised £16m in equity fundraising, with Savills taking a minority stake.
YOPA brings together buyers, sellers, its own agents and customer service teams on its website but also has a network of local agents across the UK – hence it defines itself as a 'hybrid' estate agency.
Using the service people can sell their home for a fixed fee of £780.
Jeremy Helsby, Savills group chief executive, said: "We have followed the rapid advance of the online 'hybrid' estate agency model over the last year.
“This investment broadens the group's access to the UK residential sector by enabling us to take an interest in the high volume segment of the market, comprising over one million transactions annually, to which Savills has had little exposure to date.
"We have been consistently impressed by YOPA, whose technological edge, dedication to transparency and focus on the client at the heart of the sales process all resonate strongly with our core values and the way we do business."
YOPA will continue operating independently under its existing brand name.
Daniel Attia, co-founder and chief executive of YOPA, said: “We are immensely proud to have received investment from such a well-established company.
“Savills is the UK’s leading brand in property services with substantial global operations and is known for its entrepreneurial spirit and commitment to innovation.
“Their support, and that of our other investors, puts us in a great position to supercharge our growing market share.”
In response Russell Quirk, founder and chief executive of online estate agent eMoov, predicted the hybrid sector accounting for 20% of all estate agency transactions by 2020, up from 5% currently.
He said: “The alternative, better value, better service proposition offered by the likes of eMoov and other hybrid players has been gaining traction and credibility at a significant rate.
“When a long-standing incumbent like Savills wakes up to the realisation that they must invest in such a disruptive proposition in order to prevent themselves from becoming obsolete, despite it being the antithesis of all they stand for in terms of high fees, then you know that the inflection point is on the horizon.
“It also demonstrates that homeowners themselves support this new method of selling and the more consumer-friendly proposition it offers, although this is hardly surprising.
“You only have to look at the scale of growth in the sector to see why Savills have sat up and taken notice. I predict that the hybrid sector will account for at least 20% of all estate agency transactions by 2020, an increase from 5% currently.
“eMoov alone are now 130% bigger than this time last year and with a tech platform and a team that is leading the space. The future of the consumer property industry is set.”
