Autumn Recruitment Market Update by Anthony Hesse

Recruitment is becoming more challenging

The continuing impact of National Minimum Wage increases and higher employer NICs, together with recent changes to employment law and the possibility of further tax changes in the upcoming Budget, is making businesses more cautious about hiring.

The impact is being felt particularly by younger, entry-level candidates. The cost difference between employing someone with little or no experience and someone proven is narrowing. As a result, employers are increasingly asking themselves: if the initial cost is similar, why not hire the person who can hit the ground running?

The problem is what happens next.

If fewer businesses are prepared to take on and train inexperienced candidates today, where will tomorrow’s negotiators with 12-18 months experience come from?

That is the level of candidate most of our clients want: someone who understands the basics, has some experience but who still has plenty of potential.

We may be solving today’s recruitment problem while creating a much bigger one for tomorrow.

Experienced agents have another option

We are also seeing more experienced estate agents consider moving from traditional employment to self-employed brokerage.

For agents with established networks and strong local reputations, the attraction is understandable: greater control, potentially higher earnings and the opportunity to build their own business.

Not everyone will want to take that route, but if the trend continues it will further reduce the pool of experienced candidates available to traditional agencies.

Lettings recruitment is changing

The Renters’ Rights Bill is also creating questions around recruitment and remuneration in lettings.

Traditional commission structures have often been based on the value and length of a tenancy. As the lettings landscape changes, agencies are having to reconsider how frontline staff should be rewarded.

We are seeing candidates paying closer attention to the balance between basic salary and realistic on target earnings, while employers are looking carefully at how their remuneration structures work in the new environment.

We expect the full recruitment implications to become clearer over the next 6–18 months.

Employers are becoming more cautious

As already mentioned, recent changes to employment law are also contributing to caution around permanent recruitment.

When margins are under pressure, getting a permanent hire wrong is an increasingly expensive mistake. We are seeing longer decision-making processes, greater emphasis on proven experience and increased consideration of temporary, contract and flexible solutions.

The irony is that this can make recruitment harder. Employers want greater certainty before making an appointment, while the strongest candidates are often already employed and difficult to attract.

So, what does this mean?

At the same time, good candidates are looking for greater certainty around earning potential, progression and flexibility before making a move.

That makes it more important than ever to think beyond the immediate vacancy and consider the longer-term talent pipeline.

The candidate you decide not to recruit and develop today could be the experienced negotiator you’re struggling to find 18 months from now.

If you are considering your recruitment plans for the rest of 2026 and into 2027, we’d be very happy to share what we’re seeing in the market and discuss how it might affect your business.