Lettings Market Bouyant

Residential lettings are taking off according to leading estate agents. The sales side of the business is under intense pressure – it’s estimated that 7,000 estate agents have lost their jobs – but the lettings and renting business is thriving.

It’s estimated that 15,000 estate agency jobs could go – with worst reports suggesting that house sales have fallen by 50 per cent – but The Times newspaper has carried reports quoting spokesmen for Savills and Foxtons saying lettings are buoyant.

Savills won’t confirm how many estate agents and surveyors they have let go. But it’s known to have closed one office outside London and other closures are being considered.

Jeremy Helsby, Savills chief executive, is quoted as saying Savills is seeing strong growth in lettings.“ There is a new breed of people renting with people who have sold their properties sitting on the fence hoping values will fall further.”

There have been rumours in the profession about the vulnerability of Foxtons – sold when the market was at its peak for £360 million by its founder – because of its high levels of debt. Its new owner, BC Partners, the private equity group, is reported by The Times to be in talks with the bankers who funded the deal by putting up £250 million.

But an anonymous source was reported by The Times as saying Foxtons has enjoyed strong growth in its lettings business.

Upmarket Humberts estate agents collapsed in the summer and Halifax has closed 50 of its estate agencies in the UK. Other smaller firms have collapsed or joined in mergers.