Abbey properties in the UK - Thesis Example

The main objective is to find out what challenges businesses, then real estate companies face during and as a result of the recession. The paper will as well look at entrepreneurial strategies put in place by small real estate companies in the UK to count the er effect of recession and provide a model that can aid the understanding of entrepreneurial activities practices by real estate firms.

Overview of the company

Abbey Properties is a big, well-founded, independent real estate agency. The agency has been in operation for over 27 years covering areas in North West and Central London. Abbey Properties specializes in residential sale, residential lettings of properties, residential/commercial development of houses, full property management, and management of overseas client accounts. The agency has a team of 17 employees, always focusing on customer service in line with the agency’s aim “to take the stress and anxiety out of your property transaction” (Abbey Properties, 2011). More so, the employees are friendly and well experienced ready to help the clients before and after business transactions to ensure that the clients receive high-quality service. Abbey Properties deals in all types of property and promises to offer unrivaled services (Abbey Properties, 2011). 

Challenges real estate agents face during recession

Market experts in the real estate industry projected that in 2008; nearly 15,000 estate agents lost their work in the  UK then to a recession (Turner 2008; 65). The expert went further to predict that the industry would lose about 40,000 jobs in a period of five years from 2008 (2009-2013) (Newman, 2011; 186). According to the Centre for Economists and Business Research (CEBR), the years during the session and even after the r recession was difficult for the industry.  The only relief for the industry is the understanding that, whereas the property industry is among the first industries to suffer in recesa sion, it also picks up quickly when the economy picks up.

Turner (2008, 67)   asserts that estate agents are viewed as well paid with high fees they usually charge for their services in buying and selling homes. Thus, the public is not likely to offer much sympathy to them, as most of them are facing job losses. Though the real estate industry faced difficult times in the past, the 2007-2010 recession period was worse due to the projected paralysis of the business in which property agents make their earnings.

With many companies cutting jobs, employees are uncertain of their financial future, this results in fewer willing buyers though the number of homes available for sale may be higher than before. Banks as well as other financial is more concerned with where the economy is going in regards to real estate and are taking a close look at the market trends. Thus, they are granting fewer mortgages than approved (Newman, 2011; 187).