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industry insights   |   Dec 4, 2019

Recruitment Changes in the Lettings Industry

The lettings market has seen some recruitment changes over the past year. The focus is now more on longevity and value of staff, and less on volume and turnover. What does this mean?

Letting agencies see value in experienced senior staff who can perform in a challenging and competitive market. And they want people who are committed to long term careers in the industry. This means higher bonuses based on performance and base salaries remaining low. Over the next year, it’s likely that bonuses will continue to increase.

London’s prime market

Over the past few years, sales professionals moved away from branches in Central London. But in the first quarter of 2018, things changed, and they began to slowly move back. Why? Because market activity has returned.

Letting agent salaries in the capital are higher than Greater London – for the majority of roles. In zones one and two, salaries range from an average of £15,000 to £58,000. And on target earnings range from £27,500 for a Trainee to £170,000 for a Director or Partner.

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Greater London market

Transport upgrades, gentrification, and rising house prices in the capital pushed many renters and home buyers out of the city. So, competition for lettings negotiators saw a rise in South East London – up six percent in roles advertised.

Letting agent salaries in Greater London – in zones two to six – range from an average of £13,000 to £50,000. And on target earnings range from £25,000 for a Trainee to £170,000 for a Director or Partner. Salaries are lower for most roles in Greater London compared to Central London, but it remains consistent for Directors or Partners of multiple branches.

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The online agency markets

This sector has seen a decline in growth for the first time since the birth of online agencies. The focus has now shifted to retention and upskilling in sales and customer service roles. Why? There is staff frustration with the lack of team support and structure, pushing them back to hybrid and traditional agencies.

The lettings market continues to face a talent shortage – mainly because lots of professionals are venturing into different career paths. Variable economic pressures are taking its toll. And the rise of prop tech has also deterred people from entering the industry.

So, letting agencies are improving commission packages and increasing signing on bonuses to compete for talent already in the sector. By hiring people who have a genuine passion for the industry, they’ll be motivated by higher earnings from performance rewards while having lower basic salaries. But this alone won’t attract the best. People also want career progression, collaborative and forward-thinking work cultures and work life balance.

 

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