CLAIM: High St agents face double threat of rising costs and stiffer competition

Traditional estate agencies are waging war on two fronts as they face higher staff costs and increased competition from the growing number of ‘personal’ agents claims Property Experts founder Sean Newman (pictured).

He says recent legislation such as the Budget and The Employment Rights Bill are paving the way for a tougher year on the high street.

Financial pressure on traditional agencies

“The 2% increase in employer national insurance contributions, the rise in the national minimum wage and the threat of additional workers’ rights will combine to put more financial pressure on traditional agencies.

“Some may think twice about taking on staff while others might even be considering job cuts in order to balance the books.

“Rents and business rates are also going up as are property portal subscriptions. This is bound to lead to cost-cutting which means less marketing, less training, cheaper, less-experienced staff and a higher chance of redundancies than wage increases.

I believe that many agents will see the writing on the wall.”

“I believe that many agents will see the writing on the wall and decide to move to self-employment sooner, when it suits them, rather than wait until they are forced into it.”

And Newman’s self-employed agency network has reported a record season of sign-ups.

He says: “The world is changing and if estate agency businesses don’t change with it, they will find themselves perfectly equipped for a world that no longer exists.

“My advice to small agency business owners is to offer a self-employed model, get rid of offices, employed staff and other costs.”