Estate agents in London face worrying year
According to recently released reports many of the estate agents in the London area have been selling an average of less than one property per month, as the housing downturn continues its downward spiral.
Moreover, many industry officials have predicted that the outlook for estate agents in this area could get far bleaker over the course of this year. Figures show that the number of properties that were sold in September were down two thirds compare to the same period the previous year.
It is thought that hundreds of estate agents in London may have sold just one property or less per month. Officials have said that it is likely that many estate agents branches could end up closing over the course of the year of the downturn continues at this pace.
There are thousands of estate agents working in the city, and with so few properties selling many could go for long periods without selling any property, and could eventually have to close their doors for good.
The low level of activity in the housing market has seen house prices driven down even further, which means that even where estate agents do make a sale the level of commission that is made on the sale is less than it would have been previously because the amount of the property sale is less. House prices are expected to continue falling, which could make this problem even worse for estate agents.
Many estate agents were hoping that the drop in property values would bring some good news in that it would help to increase activity in the housing market with first time buyers finally considering getting onto the property ladder. However, difficulties with getting a mortgage have resulted in many first time buyers still unable to get their foot onto the first rung of the property ladder.
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