This week, London-based real estate crowdfunding platform, Property Partner, has reportedly laid off 29% (13) of its employees. According to Business Insider, the recent cuts have taken Property Partner’s employee headcount from 44 to 31.
The funding portal revealed that the decision was made as a way to improve “efficiency and streamline” its cost base. CEO and founder, Dan Gandesha, shared with the media outlet there has been a growing theme of “caution and more active management” of costs across the global startup community.
Gandesha’s full statement about the layoff reads:
“It is always extremely difficult to lose talented and highly-skilled staff but across the global startup community there has been a growing theme of caution and more active management of costs, beginning late 2015. We are closing 13 job roles in support services to improve focus on our core business proposition. For example, we will shortly be launching a globally innovative ‘bidding-engine’ feature that takes us yet closer to our vision of a Global Stock Exchange for Residential Property. Our balance sheet remains strong, our team, Board and shareholders committed, and we are all as passionate and confident about the future as ever.”
Gandesha also noted the decision to layoff the employees was made before and irrespective of the Brexit vote. Following the UK’s shocking decision to leave the European Union (EU), he reflected upon the UK property market and the ramifications of the referendum results:
“Britain simply doesn’t have enough homes. Supply is constrained by things like planning rules, lack of public investment, skills shortages, even the availability of raw materials. Demand is further boosted by domestic population growth and the low cost of borrowing. This simple disconnect between supply and demand has driven prices and will continue to provide upwards pressure over the medium to long term.”
Gandasha accepts the short term volatililty but envisions a solid market once things settle down:
“So, while “Leave” has won the day, we believe that for the UK housing market the watchword is “Remain”. It is going to seem like a helter-skelter for all markets for the next few months, but the medium and long-term prospects for UK residential property remain strong. In the end, people need somewhere to live.”