For some in the UK property sector, redundancy means a fresh start and a new opportunity. Noella Pio Kivlehan reports on the experiences of three people who decided to strike out on their own
Everyone is aware that the UK property market is suffering in this recession, and that the sector has seen many redundancies.
The good news is that, according to the EGi jobs tracker, job losses in the sector fell dramatically during May for the first time this year.
Redundancies peaked last July, when they almost reached 3,500, but have been falling steadily ever since.
The sector is not out of the woods yet (see p70), but there is a growing sense of optimism.
Key to this is the ability of those who have been made redundant to take a leap of faith and strike out on their own. Many are setting up their own agencies.
From London to Leeds, the entrepreneurs behind three new surveying firms tell their stories.
Nico Marshall-Lee Self-employed, London
After nearly six years at King Sturge, I was disappointed when I was made redundant. I had relatively little control over the situation, given the rapid decline in the availability of finance for development, and so I looked to take some positives out of the situation.
It is important to keep a flexible approach and an open mind with regard to all opportunities. The reality is there are very few suitable positions out there, so I felt I had to crack on under my own steam, using all my contacts and experience in different markets.
I am now working for myself out of a friend’s office in Covent Garden (the company name has yet to be decided) and am concentrating on broking investment opportunities across all sectors, including residential, while also aiming to do some consultancy work.
I hope to land a deal and secure some regular income in order to survive long enough to continue working independently, or, together with one or two close associates, set up an office.
The main problems so far concern phone and IT issues and the control of expenses. However, I have received a huge amount of support from virtually everyone I know in the industry, including clients and agents.
A number of acquaintances have become new or prospective clients, particularly in sectors that are new to me, such as out-of-town retail investment. This, I think, is a good area of opportunity. The retail sector is struggling right now, but I’m it sure will bounce back.
Some central London agents get a nose bleed when you mention a building any further west than Hammersmith but I have worked in the regions and so I have an understanding of sub-£10 per sq ft.
Clearly, I am on a steep learning curve in terms of new business, but a key obstacle is motivation. You can wake up on a Monday and wonder what the week holds in store while not having much actually in hand. It is important to knuckle down and get on the phone then, by the end of the day, you will already see the week taking shape.
In five years’ time, if I am not working from my yacht in the Med, then I would hope to be working with one or two friends or colleagues, or alternatively, with a niche firm or other entrepreneurial business.
CV
2003 to date King Sturge; Exeter and London
2001-03 Chesterton, Exeter office; commercial
2000-01 Alder King, Exeter office; commercial
1998-2000 Prebon Marshall Yamane; financial markets intermediary/broker on the interest rates options desk, London
David Watson WSB Property Consultants, Leeds
It was a big decision to leave Lambert Smith Hampton, as I had been there nine years and had enjoyed every minute of it. But I had always wanted to run my own business.
Duncan Senior of CB Richard Ellis,Carl Smith of Christie & Co, and I saw an opportunity to establish a company thatwould aim to offer clients a director-led service.We thought therewas no better time to set up a new property consultancy than at the bottom of the market.
For us, the biggest fear was notabout starting the new business, butabout leaving the old one – giving up the security of a regular pay cheque and all the benefits of working for a national practice. However, the feeling we got once we took the plunge was incredibly liberating.
The biggest positive so far has been the overwhelming support we have received from our clients and fellow surveyors. This support is encouraging as it helps us toknow that wedefinitely made the right decision. Many months of forward planning and preparation went into the business, which was launched in May.
CV
2000-01Year-out placement with Lambert Smith Hampton in Leeds, doing office agency work
Nov 2003 Started in investment
Apr 2005 Promoted to associate director
Feb 2007 Promoted to director
March 2009 Resigned and setup WSB Property Consultants
Heather Smith Heather Smith Commercial, London
After I was made redundant from Knight Frank I was grateful for the change in pace and for the time to think about the obvious opportunities I could explore.
Even though the property market is sluggish, occupiers and investors still require guidance and are happy to pay for this. It also became apparent to me very quickly that clients wanted me to continue to advise them. With this obvious support, my decision was very easy.
I am surrounded by people who have started and run their own successful businesses, so I was undaunted by the prospect of doing so myself. Still, I have concerns. I worry about meeting the expectations of people who have put their trust in me. I am solely responsible for ensuring my clients get the best possible results. I also worry about having enough time to do everything I want to.
So far, I have had no large problems at all. Generally , everything is straightforward, although sometimes things take longer than you anticipate. Occasionally, something that in theory is straightforward suddenly becomes more complicated – my first mail merge springs to mind.
A big positive was the appointment – my first – by Aviva Investors to market Derby House in Newbury. I was so pleased to have such a prestigious client and instruction. To win a brand new client, find a suitable property and negotiate a deal is the ultimate satisfaction for an agent, but to do this for your own company achieves another level of satisfaction entirely.
I have learnt so much on lots of different levels. For example, I’ve learned that mail merging is not necessarily a dark art but that it does require concentration.
In five years’ time my position, financially, will be equivalent to my Partner package at Knight Frank. With a bit of good fortune, it might become significantly better.
CV
1998 Joined South East office agency team at Weatherall Green & Smith
2000 Qualified as MRICS
2002 Joined Donaldsons to help establish office and industrial team
2003 Promoted to associate
2006 Joined Knight Frank Thames Valley agency team
2007 Promoted to partner
Jan 2009 Established Heather Smith Commercial
