Estate of Affairs: More Agents Than Ever Highlights Need For Tenant Representation
Figures released today show that more than half a million people are currently employed in the real estate sector, the highest level since records began in 1978.
In an announcement that has left many fearful of a second ‘housing bubble’ crisis, the news that an increase of almost 10% in property employment activity has been met with trepidation by many in the industry.
The last twelve months have seen an increase of 77,000 in the number of estate agents, with demand from property regaining momentum after a succession of sluggish years. Areas that have led this revival include East London, where demand for property in the sought-after ‘Tech City’ district has increased year on year.
Hailed as a ‘turning point’ in Britain’s economic recovery by Chancellor George Osborne, there is concern within the industry that the sudden influx of agents will have a detrimental effect on the marketplace. There is a risk that undermining confidence in the stability of the property markets will result in a second crash.
There is also a concern that an increase in the number of brokers will have a negative effect on the position of tenants seeking in secure space, especially in sought-after locations. Shoreditch Office Space, operating as a tenant-representative consultancy, have monitored the East London property market for a number of years.
“Traditional brokers work on behalf of landlords to fill their spaces. This means potential tenants are in a weaker position, and their needs are second to the requirements of the property owner” Luke Francis, Head of Partnerships at Shoreditch Office Space explains.
“The increased number of estate agents, especially in East London where demand is already high and supply currently restricted, will simply put landlords in an even stronger position. Without tenant representation to secure a fair deal, businesses will be forced to pay over the odds and make sacrifices they shouldn’t have to.”
Tech City stands at an exciting point in its development, with household names scrambling to secure space in the latest global skill cluster. With demand in abundance, it is now crucial that tenants are able to secure fair deals on work space in London’s hottest development zone.