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Estate agents Humberts 'is on verge of collapse'

Robert Lea
16.05.08

Fears were growing today that London estate agency Humberts is on the verge of collapse.

With the property market in a slump, hundreds of sales personnel around London and the South-East could lose their jobs.

Humberts, which has 88 offices and more than 700 staff, has been dogged by problems. Businessman Jonathan Vandermolen has reportedly been petitioning for the company to be wound up as he claims he is still owed more than £1 million from the sale of his estate agency firm to Humberts.

Last year, the company made a £17 million loss, which cost chairman Tim James and chief executive Max Ziff their jobs. Since then Humberts is believed to have been seeking a buyer.

The company's shares were today suspended on the London Stock Exchange at 3.25p, valuing it at just £2 million. Two years ago, Humberts shares were trading above 100p each, valuing the firm at around £70million.

In a Stock Exchange statement, Humberts said it had asked for its shares to be suspended "pending clarification of its financial condition" and was looking at "a potential restructuring".

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It is a difficult time for Estate Agents. Some are bound to fold - the larger chains like Countrywide and Connells have huge overheads and Divisional Directors on big salaries. I am sure they will still get paid while they cut the newspaper advertising instead! It is time for Estate Agents to understand that they cannot over value anymore - no matter that they need the instruction for their targets. Be realistic and honest with your clients about what their house is likely to sell for. If they are buying AND selling its all relative. I am saddened by the news about Humberts - but perhaps they overstretched themselves and didn't see things changing.

- Karen Dumine, Bath

As an agent, I was saddened to hear of the problems currently dogging Humberts. Sure, they're competition, but that only makes for a better marketplace. It is a difficult time for those in my profession, but it's never been a business that can be effectively analysed in the short term. Property prices have gone up close to 300% over the past 8 years so this drop now will only really affect those who bought very recently and probably won't be looking at selling now anyway. As usual, the media have created a self fulfilling prophecy. All we need is a Daily Mail headline to the effect that the property slump is over and things will get back to normal. Oh, Rob, thanks for the suggestion...have you got your coveted fifth star yet?

- David, Stafford

I used to work for Humberts in 2006/7 and left soon after the Farley Group became involved with them. I think they overstretched their resources and grew too quickly through the acquisition route. They are a great agent with professional and dedicated staff, I wish them all well and hope that the worst does not happen.

- T C Mclean, Grantham, Lincolnshire