The estate agency industry is “asleep at the wheel”, the new owner of Humberts has said.
In a letter to staff from Matt Spence, founder of holiday letting business Natural Retreats, he says that the industry is “festooned in doubt”, with a lack of identity and no true pioneering brand or leader.
He says that the larger brands seem to have no idea how to adapt to changing demographics.
He adds: “It is my view that actually the larger branded agents have a lot to do with the residential market not performing consistently well, yet they are quick to cry into their milk.”
In the letter on Humberts headed paper introducing himself, Spence explains that Natural Retreats bought Humberts out of administration.
Spence himself will be full-time chief executive of Humberts, with Anthony Wild as chief financial officer and Ewan Kearney as chief operating officer. All three hold the same positions at Natural Retreats.
Tim Simmons continues in his role as head of residential sales at Humberts, and Samantha Trott continues as head of HR.
Former boss of Humberts Ian Westerling will be head of new projects. He had actually quit his managing director role in March, but as director returned a month later to oversee the rescue of one of the UK’s oldest estate agency businesses – founded in 1842 – after backers Mercantile Group withdrew their funding.
Spence says of Humberts and Natural Retreats: “Both businesses have similar traits, and while they will remain entirely separate companies/brands, they will be extremely close.”
He says that Natural Retreats – which operates in the UK, mainland Europe and the US – has been grown through hard work, determination and a “never give up” attitude. He emphasises: “Great things only happen through innovation.”
He says that Humberts will become the ‘rural champion’ brand.
First, the plan is to stabilise the business (“There’s a lot to do here!”) and then to open other revenue streams, from land agency to property management and lettings.
His letter strongly suggests that anyone currently with Humberts without the appetite for change should get out now.
He says: “I do know that this may scare some or some may scoff to those that find change unnerving, I give to you a great word –’nervited’.
“This combines nervous and excited (my little girl, Madison, could not say both so this was what she said!).
“Well, I am “nervited” too, so it’s ok! You can’t be brave without being scared. To those that scoff – well this probably isn’t the right place for you . . . change, hard work, a will to never give up on a dream and ambition are not for everyone, and I understand that and that’s ok.
“Companies need all types of people. I know this. Over the last decade I have surrounded myself with people who are far better than me at most things – I am humbled by who I work with and everyday I have to pedal like crazy to keep up –but I promise one thing – I will work as hard as I can, every day, to make this work for everyone who wants to jump on board and I promise to never give in.
“I would rather fail, than to never try.”
Spence says the combination of a high-end rural estate agency and a premium rural holidays letting agency will create a partnership and platform that will be hard to penetrate.
He goes on: “We share the same clients and Natural Retreats boasts plenty of relevant leads (it’s not only Rightmove that can supply them).”
His letter concludes: “As sure as night follows day, disruption is coming to estate agencies.
“We should not make the mistake of thinking Purplebricks is a disruptor. They are an agent without shops. The real disruption is when the entire transaction (including completion etc) is all done online.”
He says: “More change will come in the next five years than has come in the previous ten.”
He says that Humberts and Natural Retreats will together leave the big estate agents behind. The letter also makes clear the new owner’s support for Humberts’ franchise model, saying that Spence is “very committed to this” and that the franchisees are “a big part of our future”.
Comments (18)
Oh dear, oh dear…. How has Mr Westerling retained his job at Humberts, I wouldn’t trust him to run a free knees up in a brewery, awful vision, management and leadership, he really hasn’t got a clue. Humberts lacks creative, innovative people, led by old dinosaurs resistant to change like Nick Evans. It will be sold again within 12 months!!!
I wish Humberts all the best under their new ownership. I’m sure the new owners of the business will be pleased to note that one of their employees saw it fit to share his letter with a media channel. Challenge is surely to root out dis-engaged employees like this. Hats off to Natural Retreats for having the balls to invest in this business as clearly big challenges ahead which aren’t for the feint hearted.
Matt Spence has clearly been very successful at setting up and running Natural Retreats, I cannot understand why you want to diversify. Good luck with your foray into the world of Estate Agency, it is easy to make a small fortune at it, especially if you start with a large one!
I’m no accountant but looking at Companies House Natural Retreats UK Limited reported a loss of £837,158 in 2015 and £1,602,755 in 2016. How is that very successful or am I missing something?
The more proactively you chase chains, the higher your completed sale to initial instruction rate is.
The more interest and viewings you generate for a property, the higher the sale price you achieve.
I know they are generalisations, but the vast amount of times they are true.
The future will be about very high levels of personal service that are efficiently delivered. Does anyone disagree?
I hear where you’re coming from, and our positioning is certainly geared towards high service levels…as well as innovation wherever it makes commercial sense…however I do think Mr Spence makes some very interesting points (even though talk is cheap as we all know).
Yes there is improved conversion for more proactive sales chasing – but is there a decent ROI? How many of us have tried to quantify the return on invest and adapted that part of the service accordingly?
The future being about high levels of service will not necessarily mean face to face personal contact. What does the average consumer find to be most beneficial and convenient – face to face shopping in retail stores…or the faceless but much more convenient and efficient Amazon experience. Sure there is still a place for retail but it’s a sector that has been forced to adapt significantly or go to the wall.
Instead I think the future will truly belong to anyone who can make the process shorter, less complicated and less stressful and find a way of owning the intellectual property of doing so – how that will be best achieved is the difficult bit.
It is interesting to see the comments of a few above.
Estate agency is changing rapidly and I do wonder if we aren’t in the eye of the storm right now…
Everyone got quite animated over issues like OTM and Purplebricks (plus others) supposedly being “disruptors”.
I would say that Matt Spence has a point, wouldn’t you?
If the whole property transaction goes online (including completion) then the job of an agent will be radically different.
I think pinning it down to a 5 year window is a bit strong, given that I’ve been waiting since 1996 for the internet to make a truly dramatic change to things, so I would suggest that 10 years might be more likely, but who knows.
There are two things that it is currently worth paying an agent for:
– access to potential buyers
– chasing the sale and chain through.
Before you all shout at me, yes I know the next statement is not all that agents do, but for the majority of sellers the first translates to “Will I be on Rightmove?”. For a typical, average property on the market at “the right price” being on RM is often “good enough”.
Chasing chains is why really good agents are loved by their clients, but for some weird reason, estate agents throughout the UK almost never mention it – BIZARRE!
Most buyers have their mortgage offer actually in their hands within 2 weeks from application now.
Imagine if solicitors could get searches done instantly – awesome! What about making all the other legal work MUCH quicker too.
The estate agency industry needs to “wake up” to the realities of what the internet really could do for you as well as to you.
HELLO, AC – nice to see you back posting again… even if I’m not 100% in agreement with your post!
(That being said – I’m not in sufficient disagreement with it to make an issue.)
I agree
Oh dear, oh dear, another NON agent background acquisition!! as if a holiday letting company can transform the way we operate overnight?? Rings of a ‘Countrywide’ disaster, where a NON agent at the helm caused mayhem!! full of himself I say!!
Matt Spence is right.
Businesses should be constantly reappraising themselves and be prepared to differentiate and change. Many estate agency operations are living in the past and ignoring the world around them hoping that it will fit in with them and not the other way around!
Change is needed but will not be easy to implement. I remember as a Director at Connells (an original investor in Rightmove) being told that it would never catch on and that emails would only be for a small part of the public! Now, too many agents are overly reliant on both.
Machiavelli back in around 1500 summed up the difficulties of change.
“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than the introduction of a new order of things, because the innovator has for enemies all those who have done well under the old conditions and lukewarm defenders in those who may do well under the new.”
He also said:
“For this is the tragedy of man – Circumstances change, but he does not.”
i make him right in both cases.
Machiavelli was a top man. Much misunderstood. All the very best of luck to the new team at Humberts. Stand by for some creative marketing ideas.
The estate agency industry is “asleep at the wheel”, the new owner of Humberts has said.
At least he is awake.
So refreshing to hear someone mention a platform. Something very few estate agency firms ever bother with.
Good luck Mr Spence but you’re already on the back foot taking on a half dead duck.
Brave talk but you mustn’t get too cocky – you may have to heat a hasty ‘Natural Retreat’!
Thanks for that, it’s always nice when outsiders come along and tell you how simple it is to be an estate agent, let’s see how you’re doing in a year’s time?
Good luck to them, may need it. Sounds like another outsider with no industry knowledge thinking agency is easy.
Still the chap has put his money where his mouth is and saved many jobs. I wish him and All of Humberts the best.