By Dhruti Shah BBC News The number of properties being sold across the UK has hit a 30-year low. So how are estate agents managing to survive?
By Dhruti Shah BBC News The number of properties being sold across the UK has hit a 30-year low. So how are estate agents managing to survive?
Phrases like "would suit DIY enthusiast", "efficient use of space" and "incredible potential" have made them figures of fun.
Phrases like "would suit DIY enthusiast", "efficient use of space" and "incredible potential" have made them figures of fun.
But estate agents - with their unique line in salesmanship - are struggling through a dark period. In September, they sold on average less than one property per week each, the worst since 1978, says the Royal Institution of Chartered Surveyors.
But estate agents - with their unique line in salesmanship - are struggling through a very dark period. In September, they sold on average less than one property per week each, the worst since 1978, says the Royal Institution of Chartered Surveyors.
Halifax Estate Agents has announced plans to close 53 of its High Street branches by the end of 2008, while the Centre for Economics and Business Research has estimated 15,000 estate agents will have lost their jobs by the same date.
Halifax Estate Agents has announced plans to close 53 of its High Street branches by the end of 2008, while the Centre for Economics and Business Research has estimated 15,000 estate agents will have lost their jobs by the same date.
"The agents are carrying out the most sensible course of action and doing what any business would do in this sort of situation," says Chris Wood, president-elect of the National Association of Estate Agents. "They're cutting costs wherever they can. For some agents this is a time of karma - the wide-boys are being kicked out Chris WoodNAEA
"The agents are carrying out the most sensible course of action and doing what any business would do in this sort of situation," says Chris Wood, president-elect of the National Association of Estate Agents. "They're cutting costs wherever they can. For some agents this is a time of karma - the wide-boys are being kicked out Chris WoodNAEA
"Some have to make staff redundant, others are employing part-timers and those that want to survive will have to up their game."
"Some have to make staff redundant, others are employing part-timers and those that want to survive will have to up their game."
He said agents no longer expected to earn high commissions on top of their basic salary because the industry could no longer work that way.
He said agents no longer expected to earn high commissions on top of their basic salary because the industry could no longer work that way.
He says: "When the markets are booming many agents are happy to work for the commission but when they are falling, a lot of junior negotiators have to rely solely on the minimum wage.
He says: "When the markets are booming many agents are happy to work for the commission but when they are falling, a lot of junior negotiators have to rely solely on the minimum wage.
"Plenty of agents have had to take a pay cut and plough a lot more of their own money into their businesses. That can be hard."
"Plenty of agents have had to take a pay cut and plough a lot more of their own money into their businesses. That can be hard."
Estate agent Lesley Gauder, who works for independent company PMIS in Solihull, agrees times are very hard. I'm even considering getting a job stacking shelves at Tesco to get some extra cash Lesley GauderEstate agent, PMIS
Estate agent Lesley Gauder, who works for independent company PMIS in Solihull, agrees times are very hard. I'm even considering getting a job stacking shelves at Tesco to get some extra cash Lesley GauderEstate agent, PMIS
"There are just three of us in the company and we've had to make a lot of cutbacks," she says. "We're considering pulling a lot of our advertising even though this is something we rely heavily on.
"There are just three of us in the company and we've had to make a lot of cutbacks," she says. "We're considering pulling a lot of our advertising even though this is something we rely heavily on.
"The owner is using up the last of his savings to keep us afloat and I'm on half-salary. Some weeks we don't even pay ourselves as we have to keep aside money to pay our rent.
"The owner is using up the last of his savings to keep us afloat and I'm on half-salary. Some weeks we don't even pay ourselves as we have to keep aside money to pay our rent.
"We've resorted to buying cheaper teabags and coffee because the situation is that difficult."
"We've resorted to buying cheaper teabags and coffee because the situation is that difficult."
"I'm even considering getting a job stacking shelves at Tesco to get some extra cash."
"I'm even considering getting a job stacking shelves at Tesco to get some extra cash."
Some agents are fighting back and say they're subscribing to Darwinian principles.
Some agents are fighting back and one chain in south-west London is reported to have abolished its fees on any sale before the end of the year. Others say they're subscribing to Darwinian principles to get through the downturn.
Pay halved
Pay halved
"We have survived so far because we keep reinventing ourselves and putting in the long hours," says Kevin Allitt, managing director of Oystons Estate Agents in Blackpool.
"We have survived so far because we keep reinventing ourselves and putting in the long hours," says Kevin Allitt, managing director of Oystons Estate Agents in Blackpool.
"We're reluctant to start cutting fees but we know we have to be aware of how to attract people back into the market.It's been a very tough year, say agents
"We're reluctant to start cutting fees but we know we have to be aware of how to attract people back into the market.It's been a very tough year, say agents
"I know of people who have downgraded their cars and I've cut my pay by half. One or two people in my office volunteered to take pay cuts too. There isn't any other option."
"I know of people who have downgraded their cars and I've cut my pay by half. One or two people in my office volunteered to take pay cuts too. There isn't any other option."
His workforces has been halved and although he has not had to shut down any of his branches, 20 of his competitors on the Fylde coast have been forced to close.
His workforces has been halved and although he has not had to shut down any of his branches, 20 of his competitors on the Fylde coast have been forced to close.
Ben Brandt of the London property website TheRatAndMouse.com says: "This is going to sort the wheat from the chaff and the estate agents left standing in two years are going to be great agents."
Ben Brandt of the London property website TheRatAndMouse.com says: "This is going to sort the wheat from the chaff and the estate agents left standing in two years are going to be great agents."
Agents are being forced to innovate to survive, he says, citing an initiative by the upmarket agents Hamptons called Hamptons Exchange.
Agents are being forced to innovate to survive, he says, citing an initiative by the upmarket agents Hamptons called Hamptons Exchange.
Smug
Smug
Under the scheme, wealthy buyers at the top of a property ladder can buy a smaller property at the bottom to free up the chain. It's then passed over to the agent's letting department.
Under the scheme, wealthy buyers at the top of a property ladder can buy a smaller property at the bottom to free up the chain. It's then passed over to the agent's letting department.
Even the smaller independents are offering special deals, trying to ease the pain for sellers by negotiating on their behalf to get a discount on the property they want to buy.
Even the smaller independents are offering special deals, trying to ease the pain for sellers by negotiating on their behalf to get a discount on the property they want to buy.
But deals won't be enough because only quality agents offering a consistently good service can expect to survive, says Mr Wood.
But deals won't be enough because only quality agents offering a consistently good service can expect to survive, says Mr Wood.
"The smug ones who give estate agents a bad reputation will find it hard to battle through.
"The smug ones who give estate agents a bad reputation will find it hard to battle through.
"For some agents this is a time of karma - the wide-boys are being kicked out."
"For some agents this is a time of karma - the wide-boys are being kicked out."
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