You're absolutely right Mighty Mouse, it's the appeal to sellers. Sellers and landlords love to be shmoozed into believing their house or flat is with the best, most prominent, agent in their area. It's all BS though because, as you point out, most prospective buyers and renters are initially made aware of properties over the internet.

Agency fees for selling an average house (say £400k) is around £6000 and fees for an £1800 per month rental could be up to £2000. So, with this scope for generating income, the £500 or £600 per week rent they'd have to pay for the advantage they get from that prominent shopfront becomes relatively insignificant.

Small retailers, coffee shops and launderettes in SE23 just cannot get anywhere near that level of potential for turnover and profitability.

In my opinion, estate agents fees have become more like some form of tax. I mean, maybe 7 years ago they did X amount of work to sell a property for £250k to earn £3750 but now inflation has sent the property's value up to £400k they earn £6000. So their charge has increased by £2250 for doing the same work whereas the rent overhead in their old shop (let's say £300 per week), will have increased very little (maybe by £100pw).

I rented my house through a local agent 2 years ago for £2300 per month. It was on Rightmove for a day-and-a-half before it was spotted online by someone in France; and they came over and took it straight away. At the end of their 12 month tenancy I decided to try to get it onto Rightmove myself. I found a firm called VISUM.co.uk and I put it with them at a cost of £53 for getting it onto all the top property portals PLUS credit referencing prospective tenants PLUS letting agreement. Guess what - it went live on Sunday afternoon, I had a call Monday morning, viewing on Monday evening and it was occupied that Saturday - and the tenants have extended their 12 month stay!