Abstracts » Real estate industry

Gloom in the boom

Article Abstract:

The growth in the London, England, residential property market has not led to increased profits for some of the larger agencies, such as Knight Frank FPDSavills and Hamptons. The competition for business is very intense particularly as there is a shortfall in high quality property. Hamptons International has introduced marketing via the Internet and incentives for staff to help increase business. It claims a 40% share of sales of all houses worth more than 1 million pounds sterling. FDPSavill's profits from its land and property department have not increased between 1997 and 1999.

United Kingdom, Knight Frank, Hampton International, FDPSavills

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Conflict in the air

Article Abstract:

There has been a suggestion the four UK property agents, which have joined forces with US firms, may put their relationship with their clients second to their need to make profits. There is also concern they will be more interested in co-investment than receiving fees. Some clients point out they would change firms if they found there was a conflict of interest. CB Hillier Parker, Richard Ellis St Quintin, Jones Lang La Salle and Healey and Baker have all been sold to US firms.

Analysis, Conflict of interests (Agency), Conflicts of interest

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Jersey encourages agents offshore

Article Abstract:

Moves by the Jersey parliament to allow limited liability partnerships to register there may encourage some of the top property agents in London, England, to move their operations offshore. This would allow partners to avoid the dangers associated with unlimited liability, and would protect the culture of partnership. Some agents may wait a while to see if the UK government will make a similar move.

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