Estate and letting agents could face a growing talent pipeline challenge as new research shows nearly half of the public believe young people need more support into work.
Polling by the British Retail Consortium, conducted with Opinium, found 49% of people think younger unemployed workers should be prioritised for government support, as youth unemployment rises to 16%, equivalent to more than 700,000 people aged 16–24 out of work.
For estate agency businesses, which have traditionally relied on school leavers and early-career hires to build negotiator, lettings and property management teams, the trend raises concerns about future recruitment.
Rising employment costs are a key factor. Increases in the National Living Wage, higher employer National Insurance contributions and tighter thresholds are making it more expensive to hire entry-level staff, limiting the number of junior roles firms can offer.
SHRINKING TALENT POOL
That is particularly significant for agency businesses, where many careers begin in trainee or junior positions before progressing into fee-earning roles. Reduced access at entry level risks shrinking the long-term talent pool.
More than half (53%) of respondents said government should reduce the cost and requirements for hiring under-25s, highlighting growing public support for measures that could ease recruitment pressures across people-intensive sectors.
The issue is already being felt across industries that rely on high-volume hiring, and property is no exception. Agencies are balancing rising operational costs, increased compliance requirements and changing market conditions, particularly in lettings following the introduction of the Renters’ Rights Act.
HIRING IS EXPENSIVE
Helen Dickinson, Chief Executive of the British Retail Consortium, says: “Opportunities for young people are disappearing in front of our eyes. The reasons are clear: hiring is more expensive and businesses costs are soaring.
“The public want decisive action by government to get people – particularly young people – back into work. This is critical for their future, and the future of our economy.
“Instead we see government pushing up the cost of hiring, from last year’s National Insurance hike to poor implementation of parts of the Employment Rights Act. We are sleepwalking towards a jobless generation unless government halts the upwards spiral of employment costs and red tape.”
For estate and letting agents, the implications are twofold. In the short term, higher hiring costs may limit the number of trainees entering the sector. Longer term, it could accelerate a shift towards fewer, more experienced hires or greater reliance on technology to offset staffing gaps.
However, it also creates an opportunity. Firms that invest in structured training, apprenticeships and clear career pathways may be better placed to attract young talent in a more competitive labour market, while building the next generation of agents in-house.
