Junior-level agency salaries leap by 25% since lockdown lift
Salaries for qualified surveyors joining UK real estate agencies have rocketed by as much as a quarter since the country’s pandemic lockdown restrictions ended, according to one recruiter – piling pressure on businesses as the economic outlook now darkens once more.
Matthew Evans, a director at Management Recruitment Group, said base salaries for qualified surveyors up to associates in agencies have recently risen by up to 25%, pushed up in some fields by a shortage of talent. A newly qualified surveyor could now potentially earn more than an associate did three years ago, he added.
“The dramatic rise has been apparent since returning from Covid lockdowns,” Evans added. “Before this, salaries were rising, albeit less dramatically.”
Salaries for qualified surveyors joining UK real estate agencies have rocketed by as much as a quarter since the country’s pandemic lockdown restrictions ended, according to one recruiter – piling pressure on businesses as the economic outlook now darkens once more.
Matthew Evans, a director at Management Recruitment Group, said base salaries for qualified surveyors up to associates in agencies have recently risen by up to 25%, pushed up in some fields by a shortage of talent. A newly qualified surveyor could now potentially earn more than an associate did three years ago, he added.
“The dramatic rise has been apparent since returning from Covid lockdowns,” Evans added. “Before this, salaries were rising, albeit less dramatically.”
The latest Salary, Rewards and Attitudes survey from recruiter Macdonald & Company found the median salary for the UK real estate market rose by 15% to £64,345 between 2020 and 2021, a sharper rise than seen in Asia, Europe or the Middle East.
As companies consider cutting costs ahead of a potential recession, many will be eyeing recent wage inflation as a significant driver of rising costs. At Savills, which has claimed it will be better placed than rivals to weather any “tricky” markets, staff cost inflation was highlighted as pushing the underlying profit margin down to 5.7% over the first half of this year, from 7.1% a year ago.
Recruiters speak anecdotally of sharp increases in both base salaries and bonuses. One, who asked not to be named discussing individual cases, said they had seen the salary for a recently qualified surveyor rise from £33,000 a year plus a company car to £45,000, a car and a £10,000 signing bonus.
Joanne Cuckson, director for real estate executive search at Summit Search & Selection, who acts predominantly for fund management firms, said: “The battle for niche talent has resulted in a substantial rise in salaries for those with sought-after expertise over the past few years – in particular, professionals within the residential and regeneration space.”
She added: “Diversity has remained a key priority for our real estate clients, resulting in one of our talented, director-level, female development candidates recently receiving four highly competitive job offers at the same time, almost doubling her total salary package.”
Several of the largest agencies have said new hires are likely to be paused as they get to grips with the impact of an economic slump.
Emma Giamartino, CBRE’s global group president, chief financial officer and chief investment officer, said the agency expects a slowdown in the third quarter and a recession in the final months of the year, continuing into 2023.
“We are already taking steps to limit new hires, eliminate non-client-related travel and entertainment, and reduce other discretionary expenditures,” Giamartino said on a call to discuss the agency’s second-quarter results. “And we are prepared to go further if we decide more reductions are needed.”
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