The ‘brain drain’ among estate agents to online firms is now reversing, says a specialist recruitment firm.
Deverell Smith said: “We have in recent months begun to see a fall-out of candidates who are becoming frustrated with the lack of structure and team support seeking to return to traditional or hybrid agents.
The firm is also reporting a ten-year high in golden hellos paid to top talent.
Deverell Smith spells out reasons why in general agency staff want to change jobs – and money is not at the top of the list.
The top three reasons are cited as not enough market activity; long hours and low earnings; and lack of progression.
The latest Deverell Smith estate agency report says that there has been a “significant drop” in advertised roles for new starters, with hiring activity focused on established, senior professionals.
CEO Andrew Deverell Smith said employers are after mid-level to senior proven talent – and are prepared to pay golden handshakes, now at a ten year fir.
He said: “As competition for these individuals heightens, we are seeing the return of the golden handshakes and we expect this to continue over the next year as employers strive to keep joining base salaries low, reward performance with higher bonuses.
“Employers are seeking consistency and experience from senior employees who can continue to perform in challenging market conditions and who are committed to a long term career in estate agency.”
The report also found estate agencies beginning to break from their traditionally rigid working cultures to offer flexibility and rewards and benefits centred on work life balance rather than financial reward.
The catalyst for change, according to the report, has been prompted by the rise of hybrid and online employers who operate with a more flexible working model.
Deverell Smith is forecasting that as branches consolidate and begin to operate over larger territories, hot desking and flexible working models will be adopted further by traditional agencies.
The report from also covers earnings, saying that the average UK agent earns £45,312. However, this covers roles from trainee up to partner, and regional variations.
In central London (zones one and two), the average sales agent salary is £68,700, and the average lettings agent salary is £54,600.
In Greater London, zones to to six, the average sales agent earns £45,312, and the average lettings agent gets £41,166.
Letting Agent Salaries For Central London (Zones 1 – 2)
| Job Type | Permanent (pa) | Average (pa) | On Target Earnings |
| Trainee | £13,000 – £20,000 | £15,000 | £27,500 – £30,000 |
| Negotiator | £13,000 – £20,000 | £17,000 | £30,000 – £35,000 |
| Senior Negotiator | £16,000 – £25,000 | £20,000 | £35,000 – £45,000 |
| Assistant Manager | £20,000 – £30,000 | £25,000 | £45,000 – £50,000 |
| Manager | £25,000 – £40,000 | £35,000 | £45,000 – £80,000 |
| Director/Partner (multiple branches) | £50,000 – £85,000 | £58,000 | £120,000 – £170,000 |
Estate Agent Salaries For Central London (Zones 1 – 2)
| Job Type | Permanent (pa) | Average (pa) | On Target Earnings |
| Trainee | £13,000 – £20,000 | £13,000 | £25,000 – £30,000 |
| Negotiator | £13,000 – £20,000 | £15,000 | £27,500 – £35,000 |
| Senior Negotiator | £16,000 – £25,000 | £18,000 | £30,000 – £40,000 |
| Assistant Manager | £20,000 – £30,000 | £23,000 | £45,000 – £50,000 |
| Manager | £25,000 – £40,000 | £32,000 | £40,000 – £70,000 |
| Director/Partner (multiple branches) | £50,000 – £85,000 | £50,000 | £120,000 – £170,000 |
Letting Agent Salaries For Greater London (Zones 2 – 6)
| Job Type | Permanent (pa) | Average (pa) | On Target Earnings |
| Trainee | £12,000 – £20,000 | £13,000 | £25,000 – £30,000 |
| Negotiator | £13,000- £20,000 | £15,000 | £27,500 – £35,000 |
| Senior Negotiator | £15,000 – £25,000 | £18,000 | £30,000 – £40,000 |
| Assistant Manager | £20,000 – £30,000 | £23,000 | £45,000 – £50,000 |
| Manager | £25,000 – £40,000 | £32,000 | £40,000 – £70,000 |
| Director/Partner (multiple branches) | £50,000 – £85,000 | £50,000 | £120,000 – £170,000 |
Estate Agent Salaries For Greater London (Zones 2 – 6)
| Job Type | Permanent (pa) | Average (pa) | On Target Earnings |
| Trainee | £12,000 – £20,000 | £14,000 | £25,000 – £30,000 |
| Negotiator | £13,000 – £20,000 | £16,000 | £27,500 – £35,000 |
| Senior Negotiator | £15,000 – £25,000 | £18,000 | £30,000 – £40,000 |
| Assistant Manager | £20,000 – £30,000 | £25,000 | £45,000 – £50,000 |
| Manager | £25,000 – £40,000 | £25,000 | £40,000 – £70,000 |
| Director/Partner (Multiple Branches) | £50,000 – £85,000 | £50,000 | £120,000 – £170,000 |
Local experts sucked into it by the clever adverts as well.
Local guys obviously worked out that a market share of 5 houses in 1 city is rubbish…even if the owners times that figure by 700 towns to make them the largest agent.. no one is making money but the clever fat cats ripping off shareholders.
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Sorry for the external link, but…
Thanks to sain@vision at http://www.lse.co.uk/ShareChat.asp?ShareTicker=PURP for this:
https://trstp.lt/nim9jE
Territory Manager for PB since April 2012 in the US. Really??? Anyway, the review is a gem.
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Dom & Duck
“Local property experts finding that the online side of the fence is not so green”
Discuss.
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Room101,
Sorry, didn’t see this yesterday.
Haven’t read the article but in regard to the title I can speak for PB because I keep a close eye on the number of LPEs.
It seems like for the UK the number of LPEs has been dropping since they peeked around February. However in the last couple of months the numbers seem to have stabilized.
My reading of this after reading comments from the company is that they expected growth to continue as they recruited more agents leading up to the Spring Market but the level of growth didn’t materialise. The fact the numbers are now staying much the same suggests to me that the current level of around 650 is about right for the current market conditions.
In regards to growth in the number of instructions, I saw about a 20% increase in September compared to September 2017. Prior to that it was more like 10%.
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