Traditional estate agents are continuing to dominate the market and are resisting the move towards private sales, new research has revealed.

In its Estate Agents and Services Market Assessment 2007, analysis firm Key Note said that most people are still opting to sell and buy property through agents, with 19.7 per cent of people having sold and 19.8 per cent having bought using an agent in the last seven years.

"Private sales bypassing agents have not caught on: estate agents, helped by effective marketing, have consolidated their position," the firm explained.

Key Note also forecast that the sector was changing dramatically, commenting: "Estate agency is transforming from a retail service for occasional customers to an asset-management service for continuing clients."

It added that letting, financial and property services were likely to become key for agents in the coming years.

Retail giant Tesco has reportedly been exploring the possibility of launching its own estate agency arm since it closed the online private sale portal it opened earlier this year.

According to Key Note, the firm''s "entry into the estate agency market in summer 2007, as an additional shop window, should benefit the property market overall".