With the current credit crunch, high commodity prices and a downturn in the property market, the future for estate agents is not looking too good.
So what does this mean for our London Estate Agents?
House prices in London are continuing to fall. The property market fell further last month, dropping by another 1.5% in October according to the Lands Registry, making an 8.6% fall compared to October-to-October figures for London.
London Estate Agents are suffering as targets are unrealistic and commissions are squeezed. Many Estate Agents have let go of a significant number of staff because of current economical factors.
In October the number of transactions came to a standstill, however in November we see reports that transactions have magically increased compared to the previous month (October), as cited in the Telegraph. November’s performance shows how erratic the business can be, with predictions for December not so optimistic. Estate agents will be working hard over the festive season to meet tough targets, fearing for the worst.
An estimated 50,000 Estate Agents nationwide will lose their jobs by next autumn because of the worsening economy according to experts cited in the Evening Standard. Agents in London are fearful in the short term future and are preparing for a rough ride in 2009.
For now estate agents need to sit tight and hope that Christmas can bring in a few surprises, but until results for November are published we can say that due to house prices falling, estate agents are hurting.