Agents on skeleton staff as job levels cut to the bone

OVER 300 estate agency offices have closed in the last six months, and 200 more are likely to fold in 2009, according to research carried out by Property.

The figures show that the number of estate agencies has dropped from a peak of around 1,500 in 2006 to between 1,100 and 1,200 with the number expected to drop below 1,000 by year end.

The fall-off started around 18 months ago, says one industry source, but it has really accelerated in the last three to six months, with many agencies simply not opening again after Christmas.

Getting a fix on how significant job losses have been in the industry has been tricky.

Predictably, both professional bodies insist that their members will be less affected than others.

Last December Fintan McNamarafrom the IPAVestimated that 25 per cent of jobs in the sector had been lost, but says that firms are trying to retain expertise by employing people on a part-time basis.

Alan Cookefrom the IAVIsays that so far 36 members have taken up the offer of deferred fees for unemployed agents.

In the IAVIend-of-year survey members reported job losses at 23 per cent in 2008 and forecast a further 9 per cent loss in 2009.

The greatest level of redundancies was in Connaught with a 33 per cent loss of jobs in the property area, and further job losses of 19 per cent in the region this year were predicted – this would mean that over half of estate agents in the province were set to lose their jobs.

So far it looks like the predictions are ringing true.

One agent in the west of Ireland stated that most firms have reduced staff numbers by at least 50 per cent, adding that many firms are now down to a skeleton staff.