Estate agents are likely to have to make a wave of branch closures over the next 12 months, an agent has warned.
Mark Charter, from Oxford-based Carter Jonas, has predicted a “shake-out” in 2018.
His concerns were prompted by Countrywide’s recent profit warning, as well as figures from the Land Registry that indicate completions have dropped 30% year on year.
Charter said: “First-time buyers have the help-to-buy stimulus and Stamp Duty changes can also lead to them getting on the property ladder but there is an affordability issue further up the chain.
“People cannot afford to trade up and that is contributing to the stagnating market.”
He added that once families factored in all the expenses of moving — and he estimated that it could cost some families as much as £250,000 to trade up to a bigger house with a bigger garden — they were often deciding to stay put.
The removal of uncertainty over Brexit in 2019 could see the market pick up but in the meantime there could be pain for agents, he predicted.
He said: “The market is cyclical and once there is more certainty over Brexit in 2019 the market should start to pick up.
“But over the next 12 months there could be cutbacks at estate agents with some branch offices closing.”
However, in Yorkshire, Dacre, Son & Hartley has announced expansion with the opening of a new branch, in Elland.
It is headed up by franchisee Philip Garnett and will initially concentrate on sales before expanding into lettings.
It is Dacre Son & Hartley’s second franchise, after the first one opened in Morley in May 2016.
Dacre Son & Hartley claims to have roots dating back to the 1820s and has 21 branches in Yorkshire, employing 161 staff.
It launched its franchise business to allow franchisees to take on key towns and cities in Yorkshire where it does not currently operate.
Comments (11)
In answer to marcH, some fair comments and to add to the debate, firstly with a cash strapped Treasury how do they replace £10 billion revenue in the peak times? To the mandarins of Whitehall, what better way of helping the poor by taxing the rich i.e. those wealthy enough to own their own homes! I know…that is in essence what is behind it, despite who it hits, who invariably work hard and borrow up to their eyeballs to provide for their family. Therefore I can’t see a circumstance that SDLT will be removed, until CGT is introduced on your main home!
Your second point, pay on sale rather than purchase works when you have significant equity in your house, but remember the average house price is still around £220k, it will hit those going into retirement and are to live off a fixed income. President Corbyn et al would love those with high value house to perhaps pay a high rate to help the rest of the population…you know the people who have watched their house value go up 25 times in 40 years…although those will contribute via their death duties.
In summary ban all taxes
Plenty of vacancies !
http://purplebrickscareers.co.uk/
I think it’s a case of LPE’s employing LPE’s when you look at some of the OTE differences
In order to get this stagnant house market moving again why doesn’t someone look at the iniquitous system we have in this country where the non-cash buyer has to borrow money to pay tax (SDLT) to the government? Why, when you want to buy your home do you have to pay tax to do so? Instead of constant fiddling with Stamp Duty thresholds for FTB’s which always seems to produce cliff-edges, why not split the tax so that buyer and seller both pay the tax? Or go further and scrap it altogether so only the seller pays. That way, baby-boomers (such as myself) get to pay something back to society on the often huge profits they’ve made on their houses (in my case 25 times increase in value over 40 years) when they eventually downsize – thereby helping those who have not been so fortunate. It could be structured in such a way that there is no net loss to the Exchequer and it might, just might, help clear the logjam in the middle of the market.
A bit out-there but worth a debate? Or have I got it totally and utterly wrong? ‘Likes’ welcome!
just liked what you said marcH
Would be good to talk to you in@agentv.co.uk
Careful Chris Wood…..there could be a law suit heading your way
It won’t be the first time they’ve tried to bully me (or others)
Think he’s spot on with that analysis.
And the agent with the largest closure of ‘offices’ over the past three years is…
…..Purplebricks*! More of their franchises have ceased trading in the past three years than any other single estate agency business in the UK.
*as far as I am able to make out from cross-referencing PBs website, companies house and TPO information.
Am i missing the sacrasm? They have no ‘offices’.
I jus think as older agents are retiring they are not being replaced by the x-emplyees of countrywide like they used to be ( me Included)
Its not the online threat that is stopping young agents entering the industry its the taxes, rates, rightmove costs, and general poor economy that the tories have inflicted on every working class family to stop them moving up the ladder.
i.e. Less units = less money = less of everything.
Oh but they do (despite protestations and adverts to the contrary). Pop along to the ‘find a member section of the TPO website and search under “Purplebricks” with no area selected. Cross-reference the (100 or so) registered ‘offices’ with what the TPO rules state about advertising locations and membership in windows etc and there is another point where PBs’ statements require closer inspection.
Find a member – https://www.tpos.co.uk/find-a-member
Code of practice (sales) https://www.tpos.co.uk/images/documents/rules-codes-obligations/residential-estate-agents/TPOE27-6_Code_of_Practice_for_Residential_Estate_Agents_A4_-_effective_from_1_Oct_2016.pdf