NEWSbeat
OUTLOOK
Jobs in danger says industry report
C
L
O
SE
D
Moving into 2010, although remain competitive in 2010.
the outlook is brighter, Whether through natural
prospects are you’ll have to wastage or compulsory lay
work harder than ever to offs, job losses are necessary.
survive and prosper. Or at least With the average sales per
that is what industry analysts employee figure down to
Plimsoll, say in their new £56,000, employees need to
report, The Plimsoll Estate ‘buy in’ and contribute more
Agents Industry Report. to the recovery of their
David Pattison, senior companies. if you still have a
analysts and author of the job expect to work much
INDUSTRY LOSSES
2010 Plimsoll Analysis harder in 2010. £265 million
Ditch List 2009
explains, “The recession tore worth of profit has been wiped
through the market in ’08 and from the market in the last
most ’09 like a tornado and year and employers have no
accelerated the rate of change choice but to cut their cloth
Confirmation of the impression another, although Bairstow Eves’ in the market. Aggressive accordingly.”
of estate agents closing on every cull saw the loss of 14 Greater ‘growth at all cost’ operators As for mergers and
high street across the UK has London branches, 10 in the South have been forced to abandon acquisitions Pattison says, “In
come with the publication of East and seven in the East their reckless strategies. all we named 277 companies
Boom and Bust – a review of Midlands. The Halifax axe fell on However, some amazing in our latest analysis that are
estate and letting agents. 16 branches in the South East and companies have come through ripe for takeover or merger
The research was carried out by 9 in the North West, with more the recession largely with a larger parent. It’s a
The Local Data Company which closures likely following their sale unaffected and look set to buyer’s market in 2010 with
tracks 705 centres on a variety to LSL. Bad news for hundreds of make 2010 their year.” many companies still
of market topics. It finds that 142 estate agency staff and even that However, when pressed on recovering from the recession.
estate agents – 15.8 per cent - is not the full picture of the impact what likely changes he Our report has picked some
have closed in the year to October that this recession has had on envisages in the market in great examples of companies
2009. The larger chains have estate agency. There are many 2010 he says, “More job losses that are currently undervalued
closed most branches 171 offices in all areas of the UK where and consolidations sadly. Even because of the recession that
according to The Local Data the branch has remained open for as the market improves there would be good acquisitions.
Company – Halifax lost business but staff numbers have are a lot of companies, large “For struggling companies,
45 branches, nearly 31 per cent of been drastically cut. and small, that survived by the a buy out may be the quickest
its branches. Bairstow Eves lost 44, The Local Data Company says skin of their teeth and they route to get the company back
which is 20 per cent of the total that there are now 9167 estate have to rebuild their profit on an even keel – even if it
number of branches while Your and letting agencies in its 705 margins and efficiencies. means relinquishing their
Move closed 34 and Haart locked tracked centres, comprising 6243 “Our latest analysis projects independence. Inevitably, this
the doors on 25 of its offices. or 68.1 per cent independents and that a further 5,000 jobs will will further increase job losses
There is little evidence that any 2924 or 31.9 per cent multiple have to be shed if companies as new owners would quickly
particular region is worse hit than branch companies. are to get back to profit and look for efficiency gains.”
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ESTATE AGENCY
Foxtons fights on as Jon Hunt writes off £50m
Foxtons has hit America Merrill Lynch and in return for most of the financial position.
the New Year Mizuho, who jointly lent £260 company’s equity. Jon Hunt Their decision to appeal
with all guns million back in 2007. shouldn’t feel the pinch too came after the Supreme
blazing with a Key to the deal was an much as his wealth was Court’s ruling on bank charges,
survival deal agreement with Jon Hunt, the estimated at £660 million. which stated that banks did
with the banks founder of Foxtons who sold The second prong of not need to repay overdraft
and an appeal out to BC for over £300 million. Foxtons’ survive and prosper charges. A Foxtons spokesman
against the court ruling on Jon Hunt has agreed to waive plan was announced on said, “The Supreme Court in
their tussle with the OFT. the £50 million still owed to Christmas Eve, with a plan to the bank charges case has
BC Partners, Foxtons’ owner him by the company. This appeal against a High Court significantly altered the way
will inject a further £50 million concession made the ruling on unfair charges to in which the courts are to
to remain the single largest restructuring deal possible, landlords. If successful, this approach the unfair terms
shareholder, in a deal with along with a further £140 could have a very positive regulations.” The appeal must
their original backers, Bank of million in loans from the banks impact on the company’s be lodged by 29 January.
8 FEBRUARY 2010 PROPERTYdrum
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