Agents plan cutbacks amid housing market concerns - claim

A significant number of estate agents are planning cutbacks in the coming months to cope with the cost of living crisis, research suggests.

A poll of almost 700 estate agents by media provider Giraffe360 has revealed that 41% plan to make cutbacks due to financial worries stemming from current market uncertainty.

Of those making cutbacks, 28% said they would reduce operating cost, a fifth would cut third party costs staff numbers or reduce marketing and advertising spend while 13% would reduce office numbers.

In contrast, 59% said they are not planning any cutbacks and another 73% said they still believe it’s important to invest in their business during tough times in order to win instructions. 

The largest area of focus was creating a good first impression on listings as well as good public relations and grassroots advertising such as leaflets and billboards. 

Additionally, a third of estate agents also plan to take on additional tasks in-house to cut costs such as their property media and floorplans instead of outsourcing them for a higher fee. 

The survey asked agents if they were worried about their business from a financial point of view with the market entering a period of uncertainty. 

Just 9% stated they were significantly worried, with a further 28% feeling somewhat worried about what lies ahead.

However, 64% remain confident, stating they were not worried about what’s to come. 

Mikus Opelts, chief executive of Giraffe360, said:  “While we’re yet to see the full extent of any market downturn truly materialise, many agents are already planning for what’s to come and this pre-emptive approach to a cooling market is no doubt the reason that so many remain confident in their business from a financial standpoint. 

“For the large part, this preparation centres around cutting the fat and streamlining their day to day operations, but at the same time, many also realise that in tough times it’s important to invest in order to win business. 

“This doesn’t have to be done via expensive radio or TV advertising campaigns and really revolves around going back to basics and creating top quality property media and PR to showcase the true values that a business holds at its core. 

“Of course, creating high quality property media can be an expensive endeavour when done via a third party provider, not to mention the fact it often comes with a long turnaround time.  

“However, those that are willing to take on the mantle themselves will find that, with the right equipment, they can produce industry leading photos and floorplans themselves and for a fraction of the cost.”