Marsh & Parsons has slimmed down its operations amid challenging market conditions for prime London real estate.
In 2018, sale volumes in the prime London market fell by 15% as house prices dropped 3.8%, according to LonRes. The number of new instructions fell by 14%, while more prime homes were removed from the market than were sold.
The high-end estate agent has restructured its land and new homes team and closed the division’s headquarters on New Oxford Street.
The move has resulted in a number of high-profile exits, as well as relocations to some of the firm’s high street branches.
A spokesman for the company said: “Marsh & Parsons has conducted a review of its land and new homes team and as a result of the review a decision was taken to end the lease at New Oxford Street, its administrative premises for Marsh & Parsons’ land and new homes division, and accommodate these activities into its front office operations.
“As a result of this restructuring a number of people have left the business.”
The London agent has bid farewell to head of development and investment Charles Holland, who led this business, as well as head of sales Alex Greaves and head of consultancy and strategy Rory Cramer, among others.
COO Helen Sachdev and finance director Chris Brand have also left the business, but the spokesman said their departures were unrelated to the new strategy.
Sachdev has joined housing association Optivo as a non-executive director, audit chair. Brand is working as a consultant for BBC Media Action. His replacement, Rob Edgington will join M&P in March.
M&P will now rely on in-branch agents to focus on land and new homes under the leadership of assistant director and head of new homes Siobhan Staunton.
It will also use external consultants to manage its land and development business. Existing development contracts with Tate & Lyle, Mount Anvil and R55 have already been outsourced to Holland’s newly launched firm Maze Real Estate.
Holland has launched Maze with Sam Aldridge, who has also left his role of residential development and investment consultant at M&P.
Patrick Littlemore will remain as chief executive, after his appointment in April 2018, following the retirement of David Brown.
The M&P spokesman said: “We retain confidence in the long-term health of the land and new homes market and will continue to focus on winning instructions that are attractive to our expanding database of clients.”
The news comes after parent company LSL Property Services, which acquired M&P in 2011, made redundancies across its brands Your Move and Reeds Rains, leading to 47 employee exits.
Since its acquisition M&P has grown from 13 to 28 branches, none of which will close as a result of the restructuring.
Changing strategy in tough London market
Marsh & Parsons has been a key brand in the London property scene since 1856, providing London residential sales, lettings and development consultancy, through its network of in-branch estate agents and its development team, which launched in 2013.
As head of investment and development, Holland was tasked with growing this part of the business, bringing Greaves and Cramer on board in director roles. The team worked with branch agents to offer stock from its new homes and development divisions, moving away from the reliance on off-plan sales.
This was largely bolstered by Help to Buy home sales. But as the government scheme winds down and London prime sales stall, M&P has rejigged the team, relying on outsourced development consultancy and in branch teams.
In full-year company accounts for the year ending December 31 2017, reported in June 2018, M&P posted an EBITDA of £4.3m, down 23% and an operating profit of £3.7m, down 12%.
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