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50,000 estate agents face axe in next nine months
Benedict Moore-Bridger17.11.08
AS many as 50,000 estate agents could lose their jobs by next autumn because of the worsening economic crisis, experts today warned.
Economists said the collapse in the housing markets meant the true figure would be double previous predictions of 15,000 job losses, with some experts forecasting at least 50,000 out of work by next year.
The panic has led to some businesses making desperate attempts to secure their survival, with one estate agent even converting part of his office into a café to generate extra income.
Ben Read, managing economist at the Centre for Economics and Business Research, said the toll of job losses would be shocking.
He told the Standard: "It will definitely be worse. The housing market has dropped significantly more since May and the outlook for the next nine months is pretty ropey.
"Because of the worsening situation in the economy you could easily expect that figure of 15,000 to go up by 50 per cent. The true figure could even be as much as 50,000.
"Most estate agents have let go significant numbers of staff and are working on skeleton staff. I'm sure it will surprise everyone how bad it is."
Mr Read said the fall in house prices and lack of transactions taking place meant inevitable job losses for staff working on commission - either being fired, made redundant, or voluntarily looking for other jobs because of the lack of income.
Gary Anderson, 38, a partner with Davies & Davies estate agents in Hackney, said everyone in the industry was fearing for their future.
"We have let someone go and know other firms have done the same. People are worried - prices are down 20 per cent from last year and still coming down," he said.
"It is very difficult now to buy. People have to put down 35 per cent deposits - it is a hell of a lot for people to stump up. Mortgage arrangement fees costing thousands of pounds are also putting people off."
Emma Whitham, 29, a sales manager with ludlowthompson in Islington, said the slump in the housing market had led to a 50 per cent reduction in properties on their books.
She said: "Prices are lower than they have been for years - we have seen a good 25 per cent drop. Of course people are worried. There is not really a massive amount of job security." The 29-year-old said people were too nervous to buy. She said: "It is so uncertain what is going to happen to house prices.
"From 2006 to 2007 there was a massive boom so people got carried away with what properties were worth. It was not sustainable and that is why we have this problem today."
Gina Mackenzie, director at Hamptons in Islington, said their number of properties for sale had dropped from 331 to 105 in the past 12 months.
She said: "Clients realise the penny has dropped - the market is not the same as 2006/2007... but in sales you have to be good at your job.
"It is harder and there will be more casualties, but maybe they are the ones that should not be in the industry in the first place." She said that some agents had simply "given up". "There is so much lethargy - they act like it is dead and that is madness. It has been a bloody hard year but there is still a market," she said.
Chris Brown, president of the National Association of Estate Agents, said the last few months had been like "Armageddon". Many estate agents were moving into lettings for regular incomes, rather than the high-money commission sales, he said. Others were looking at becoming independent sales advisers.
He said: "The damage has been done, it is make or break. If businesses can't make it pay now, the only other option is to look at closure.
"It is a very, very tough time."
Reader views (27)
Richard,
I read your comment and I can honestly say that you are an absolute fool. You make no sense in what you write and I can truly say that if you are an agent, which I think you are, you must be at the bottom of your profession.
It is not only the bankers that have messed up the economy it is a number of things and all of us will feel the pinch and as for buying up properties I would be interested to know how many you have. I expect just one which is your home.
I expect that you a little chavvy man with a bald head who drives around in a red golf GTI with a personalized number plate DIC 3245. I hope you don't think I am being too hard on you but I have met many people like yourself in my career and you are all alike. UNEDUCATED JOKERS
- Thomas Crampton - Reynolds, Kensington
There really are some sad people out there...'Estate agents responsible for pushing the prices up'??? You lot were the mugs that paid them!!! So much for qualifications...Look at where that got the bankers!!!! A screwed up economy!! Ps were still loaded and will buy all of your properties when you get repossessed. x
- Richard, London-Wimbledon
These bottom feeders have soon changed their tune. These were the same people that were pushing prices up a couple of years ago and earning a fortune in the process. I presume they have put money away for a rainy day....
- Colin Snelling, Melbourne Australia
For all the people who write 'cheap' comments about estate agents - they seem to have time to write ignorant comments on websites all day saying Agents don't do anything for their money........strange.
- Pm, London
Enjoy the re-mortgaging, we will remember when you need us again and we will charge you double ! as you will be desperate to move out of your overpriced piles of rubbish!!!! HA HA HA have a good life and dont spend too much!!your house and life is going down!!!
HA HA HA
- David Snatch, london, uk
The people will devise cheaper, more efficient ways of selling houses than using extortionate estate agents
- Keith Price, Luton, England
Well it still beats living in France, peter!
- Richard, London
Chris, Bristol - i remember watching estate agents secretly filmed by hidden cameras actually "hinting" that potential buyers should "fib" about their earnings when "self assessing" themselves for a mortgage.
You didn't do it for the seller of the property you did it for yourselves and the big fat commission you earn.
You people helped push up house prices and so the population of estate agents grew like a infestation of vermin.
Time for a cull!
- Mike, London
There are hard working, dedicated, moral, ethical and caring people in every profession (even Estate Agency) and to say otherwise is silly and insulting.
- Adrian P, London UK
Couldn't have happened to a nicer more decent bunch of people. What a choker. (Sound of stifled chuckles).
- Jimbob, Kensington
Remember when agents are struggling so are you ,we hope you all enjoy sitting in your overpriced negative equity havens, ps good luck remortgaging when you want to change lenders and find your home is worth 20% less.Not all bad though ,as your neighbour cant sell he will rent instead and we will put in some nice DSS tenants for you. Merry Xmas
- Raymond, UK
Money for jam during the good times. They do absolutely nothing for their money, and do it for an enormous commission. Serves them right - now they'll have to get a proper job.
- Peter Johns, Nice, France
What a bunch of idiots you seem to get commenting on these stories. Estate agents didn’t push the prices, we just did the best job for our clients the seller - how would it have gone if we had got the seller less than we could. The market where we are seems to be picking up a bit now and all you sour grapes doom mongers will have to find someone else’s misery to revel in.
- Chris, Bristol
You need a heart of stone not to burst out laughing.
- Richard, London, London. UK
Together with the lenders, Estate Agents contributed to the property price bubble. What a shame so many people have had to learn such a hard lesson.
- Douglas, Bristol
But on the plus side "50,000 estate agents face axe in next nine months".
- Bob, Cheam
Estate Agents, Bankers I can't take it anymore....ha ha ha.
Hopefully traffic wardens next as people can't afford to drive anywhere and those other vermin called recruitment consultants... oh car dealers would be nice too
Heard theres a few jobs going in Poland, feel free to apply for them now
- Anon, London
Good.
They are hardly worthy of sympathy, besides where i live there are still 6 estate agents in the high street and not one half decent shop.
- Jeremy, London SW1
Yeah that's very sad.....
Hope they put away all that commission from driving the prices through the roof for years with unethical business methods!!
- Paul, London, UK
Only 50,000? shame the vultures who contributed to rising prices have been stung by the very practices they dishonestly carried out.
- Ag, The Village of London
Perhaps now is the ideal time to both introduce [1] formal qualifications for Estate Agents (like they have in the USA); and [2] to end "self regulation" and have them formally regulated by the FSA or some similar Regulatory body; in order to make the industry far more professional and consumer trustworthy?
- Fraser, Telford Park
Poor lambs
- P I Staker, London
It will be interesting to see thes drones with their limited talents on the job market.A wonderful piece of news
- Willy Heckaslike, dover uk
That's so sad init!
- Frederick, London, UK
Nu Labor HIPS report or tax anyone??
- Steveo, London NW1
Tough when you actually have to work to make a living... Champagne anyone?
- John, London, UK
After months of bad news, finally, something to smile about...
- Lb, London
