Author: Antony Antoniou

Antony Antoniou MAPD, has been involved in property for over two decades, in developing, sales and rental. With an inherent love of property and a comprehensive knowledge of Northampton and the surrounding area, he is well placed to deal with all aspects of the sales process, from sourcing, valuing, marketing and sales progression.
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Agents Jobs At Risk: furlough scheme must be longer says industry chief

Agents Jobs At Risk: furlough scheme must be longer says industry chief

Agents Jobs At Risk: furlough scheme must be longer says industry chief
 
A high number of agents across the country have been furloughed in recent weeks and are now at risk of losing their jobs if the scheme is not extended beyond the end of May.
 
That’s the view of a senior industry figure – Jon Cooke, chief executive of epropservices which is the parent company of Fine & Country and the Guild of Property Professionals.
 
Cooke warns that while many agency chiefs have made their companies as lean as possible, with the housing market on ‘ice’ and transactions plummeting, many will have to make tough decisions at the end of May if the scheme is not extended.
 
Furloughing, under which the government pays some 80 per cent of staff pay for a three month period under the Coronavirus Job Retention Scheme, was announced a month ago and applies for three months from the start of March.
 
“With a large number of staff furloughed and salary costs greatly reduced, many estate agencies have been able to hunker down and ride out the storm for the short term” says Cooke.
 
“However, during this month, many businesses will be looking at their financial situation and making the decision whether they will be able to keep staff on their payroll beyond the end of May. That is unless the government extends the job retention scheme, a decision that would be essential to a large segment of the industry.”
 
He continues that while the government could start to ease constraints on our freedom of movement as we head into summer, it will likely take some time for the economy, and more particularly, the property sector to bounce back.
 
“Unlike other sectors such as pubs, cafes and restaurants, that should see a relatively fast recovery once restrictions are lifted, the sentiment-driven property sector will take longer to find its feet and will need more support from the government” cautions Cooke.
 
“While it seems that the majority of agents’ transaction pipelines remain intact, delays caused by the lockdown will mean that it will take a while before those transactions are completed and the revenue streams begin to flow once again. If restrictions are lifted on June 1 and transactions resume, it will only be late summer that agents will start to see the fruits of their labours.”
 
This echoes a prediction by Zoopla market analyst Richard Donnell, which we reported on Tuesday, that agents’ revenues would be hurt for some months to come even if the Coronavirus lockdown ends relatively soon.
 
Jon Cooke continues: “There is no doubt that the government has already been crucial in helping estate agents and the economy tread water during the crisis – but if the taps are turned off, the industry and the property market will take a substantial knock. We urge the government to continue taking measures to protect the industry and job roles that will be needed to get people moving again.
 
“Moving home has knock-on advantages to other aspects of the economy, so action taken by the government to reignite the property market after restrictions have relaxed will have a positive impact on the financial health of the country as a whole.”
 
And he concludes that while the government has already forecast an estimated cost of £40 billion to cover the cost of the initial three-month furloughing scheme, “failing to take further measures to protect the industry would be far more financially damaging.”
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Searches: councils slammed as dangerous over face-to-face visits

Searches: councils slammed as dangerous over face-to-face visits

Searches: councils slammed as dangerous over face-to-face visits
 
A trade body has reported some council search departments to the government for refusing to provide email details and forcing search agents to have face-to-face meetings.
 
The number of transactions has of course fallen markedly but the Council of Property Search Organisations says fewer than eight per cent of search requests in recent weeks have been affected by Coronavirus restrictions, and property searches have continued to be available in all but 24 local councils.
 
“However there are some local authorities that have refused to email information to search companies, insisting instead that search agents still have to visit their offices” claims a CoPSO statement.
 
“The vast majority of searches are ordered via a search agent and we are delighted that in over 90 per cent of cases CoPSO members are able to serve their customers without any problems” says James Sherwood-Rogers, the body’s chairman.
 
“It’s frustrating that there are some councils who are forcing search agents to make unnecessary journeys at a time when the rest of the country is doing everything they can to protect the NHS and save lives by reducing journeys and staying at home where possible” he continues.
 
CoPSO has now written to the Competitions and Markets Authority and to the Ministry of Housing, Communities and Local Government to complain about those local councils not supporting the movement restriction guidelines, and says it may publish a ‘name and shame’ list of them.
 
In addition it is unhappy that a small number of authorities have increased or introduced new charges for providing search information during the Coronavirus crisis.
 
“Local authorities must act within the law and not use this crisis to flout competition rules and increase costs for home movers, especially at a time of so much uncertainty for home movers and the wider housing market” says Sherwood-Rogers.
 
He adds that there are only 24 councils currently unable to produce a search at all, due to the closure of an office holding essential records.
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Love it or loathe it? Help To Buy to be beefed up after lockdown

Love it or loathe it? Help To Buy to be beefed up after lockdown

The controversial Help To Buy scheme looks likely to be expanded in breadth and extended in duration to help kick-start the housebuilding industry after the lockdown.
 
Currently the scheme helps buyers of new build homes with an equity loan worth 20 per cent of the value of a property; it is due to be phased out between spring 2021 and 2023.
 
It’s been widely reported that the housebuilding industry and its trade bodies have told the government they fear a long-term slowdown will impact on new build volumes; Savills estimates that work has stopped on sites which could accommodate some 200,000 new homes.
 
Meanwhile the former head of the civil service and permanent secretary at the Ministry of Housing Communities and Local Government is also urging Whitehall to beef up Help to Buy.
 
Lord Kerslake told the Housing Today magazine: “I think the challenge is going to be to restore confidence after what has been a big health and economic shock. The sort of things you’ll be looking for is where the government can give confidence to the market, particularly on build for sale, with things like Help to Buy… I think they should at least be putting it on the list of things to be talking about.”
 
Help To Buy has had a mixed reception in the months leading up to the virus outbreak, with critics suggesting that many of its buyers did not need the financial assistance it gave, and that the single biggest effect of the scheme was to inflate the stock market value and profits of many of the country’s largest housebuilders.
 
Supporters say it has helped large numbers of purchasers – the majority of them first time buyers – on to the ladder in better quality homes than they would have bought without the intervention.
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Agents quit Rightmove in new spurt of publicity for OnTheMarket

Agents quit Rightmove in new spurt of publicity for OnTheMarket

Two agents have quit Rightmove and taken to social media to give their reasons.

One is the 12-branch Andrew Craig agency which serves Tyneside, Wearside and County Durham handling sales, lettings, auctions, property management, conveyancing, surveying and mortgages.

In a tweet posted by OnTheMarket the agency – which has quit Zoopla as well as Rightmove – says: “I have cancelled my contracts with both Rightmove and Zoopla to fully support OnTheMarket because we think it’s the best value portal by far and because it’s agent-backed.”

And another OnTheMarket tweet quotes Simon Fisher of the three-branch Absolute Sales & Lettings agency in Torbay as saying: “We cancelled our contract with Rightmove just before their offer of a deferred payment scheme. We decided they hadn’t looked after agents and had become too far removed from what they set out to do.”

The OnTheMarket website says: “More and more agents are saying that OnTheMarket is generating a good flow of quality leads at a reasonable cost. As agents review their portal choices, many have cancelled other higher cost portal contracts and many are signing up to list with OnTheMarket.”

The most recent update on OTM’s members came from the portal in Christmas week last year, at which point it said it had “over 12,500 agent offices” – there has been no more recent update.

The latest defections come as the Say No To Rightmove campaign, set up by Robert Sargent, chief executive of the Acorn Group, has reached some 1,100 branch members.

Sargent’s company has 36 branches across London and the south east and spends close to £500,000 on fees to the portal.

The portal debate has become increasingly heated since the start of the Coronavirus lockdown with disputes over the varying offers made to agents by Rightmove, Zoopla and OTM and challenges by newer portals such as free-to-list Residential People and yet-to-launch sites called OpenBrix and Homesearch.

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PropTech Today: Ignore 2024, discover 11 home truths happening now

PropTech Today: Ignore 2024, discover 11 home truths happening now

On April 4, EAT published a piece titled: ‘It’s 2024: what will the industry look like, post corona-virus’. To me, this was a completely irrelevant article and there was simply no point in reading it – although well over 3,500 of you have done so.

Okay, let me retract the word ‘completely’ but, at this time, we should be concerned with what the industry will look like on June 24 not 2024. That is what is currently important to each and every one of you. This will be a date where more will be known about the initial short-term impact of this tragic situation we all find ourselves in. 2024 is currently irrelevant.

Let me start with a light-hearted observation. I think we all recognise that the status quo has been blown away. We are seeing, on the one hand, many adopting a much more technological and collaborative aspect of our business and home lives.

Virtual viewings are booming. Virtual house parties, discos, pub quizzes and poker evenings are commonplace. We are learning new ways of communicating and working.

On the other hand, we are all becoming more traditional. I suspect many of you will be baking bread at home, some will be growing seeds.

Others might even be investigating how to make pasta and start drawing again. We have been going out for family walks (when we are not trying to work out how to balance home and work). Doing jigsaw puzzles together – and the occasional game on the Xbox or PlayStation.

What is changing is the middle ground, the status quo. We are upskilling our knowledge of the traditional and the technological. The normal has disappeared. The way we have always done things has changed. We are gaining a sense of control that has been missing for some time.

I wanted, therefore, to use this column to give you some home truths on what I see as happening today. Some you may like. Some you may not. Whichever way, this is a mish-mash of thoughts and feelings I have at the moment and not in any particular order.

1. Technology is forcing us to rethink what we actually ‘do’

There are positives to come out of this situation – I felt this was an excellent and practical example of some changes that are coming into effect right now. Property management is changing, viewings are changing and so are planning meetings and Merger & Acquisition discussions. A positive look at some possible changes.

2. Furloughing is only a short-term positive step

This is where it takes a turn. Furloughing for me is not a positive step. Understand what this really means. Yes, it is putting the role into hibernation. You will get paid for not doing a great deal. Great. But coming out of that hibernation doesn’t mean you spring out of bed. The business landscape will come out of hibernation at different times; it will be sleepy and sluggish for a considerable period.

I can’t help but think there is going to be a huge wake-up call (no pun intended) for a lot of back and front office staff in the next eight weeks. It will not be pretty.

3. What you do during your furlough will define the next steps in your career

If point two comes true, steps you take during your furlough will mean the difference between having a career and not. Some of you will quite rightly be celebrating your paid time off. A well deserved break, no doubt. But, don’t relax. Learn a language, learn a new skill but always have one eye on your career. What will you do to advance it (or change it completely!?).

People will ask you questions like ‘How did you spend your furlough?’ in future interviews. Investors will quiz PropTech people on how they changed their business plans in this period. Having an answer and showing what you did will show leadership and ownership and that you understand the opportunity presented.

4. A new portal is not the answer

Articles I have read this last week are delighting in new portals launching. 2,500 branches are interested in Homesearch, apparently (interested means nothing, by the way) and Openbrix, 18 months in the making, is nearly ready. These are not going to be able to compete for the foreseeable future with Rightmove, Zoopla or OnTheMarket, if ever.

They are missing the point. It isn’t just about pricing. It is about what that pricing gives access to. A £155 per branch subscription model till 2025 will still be expensive, especially with no audience for a considerable period of time. We all know that. Despite the challenges those existing portals all face, they are still going to be the leading marketing channel – whether you like it or not – for some time.

Having said that, these existing portals need also realise the pricing models in place now will not reflect the new normal coronavirus is creating. They need to adapt, and quickly, because of factors I will now discuss…

5. Offices will shut

Yes, home working is tough. Yes, we may want to shut our children in a room and lock the door. Yes, we may want to work in our pyjamas. Yes, we may miss our co-workers. But we are in control. We have flexibility. We have time. Most will realise the benefits of working with more flexibility.

High streets will never be the same again as agents finally realise there is a better way (and they have an excuse to work differently).

6. Brokers and self-employed agents will become the norm

With inevitable layoffs, these models will quickly become more normal and accepted. Consumers will want to work with individuals and won’t think twice because of what has just happened. Service will become the absolute essential aspect of any home transaction. Purchases will be a far more personal experience between the buyer, vendor and ‘agent’.

7. Online agents and iBuyers will struggle

I might suggest there will be a short-term blip of possible survival here for these models. People will panic and want to shift quickly or lockdown will mean they realise now that their home is not fit for purpose. They will realise (like baking bread and making pasta) they can self-serve and want to try. They will also be craving for the certainty that an iBuyer model gives them.

This will be shortlived as they will firstly want human-to-human interaction and feel reassured about decisions being made. iBuyers will not be operating at this time. The algorithms used to predict price viability will simply not be built with pandemics in mind. They might, however, be ready for the next one…End of story.

8. Management should be showing leadership

This is the time where you will see whether there is true leadership in your organisations. Firstly, they should have been decisive, transparent and guided you through the first process of what is a difficult situation. Now, they should be sitting back and thinking. If we started again, how would we build the best ‘estate agency’.

There has been no better time for people to take their brains out of their everyday business operations and reflect. How is this going to change the organisation? Are our fees reasonable or do we need to change how it all works? How are we going to look after this has all settled down?

Estate agents should no longer be carbon copies of each other. Like political parties, they need to be clear of what they offer and why. They need to share their values and why people should work with them.

9. What is the purpose of membership organisations now?

As a founding director of the UK PropTech Association, I know this is something we have taken seriously ourselves. What is the purpose of the association? What is our role now? Many of you pay membership fees to these organisations to help you. What are they doing for you now? It is going to impact them as much as it will be impacting you. Already some are starting to show their true colours, perhaps – read this about ARLA.

At the UKPA, we realised this is the time the property industry needs us most as digital transformation has been pushed from a 10-year process to a 10-week process! The question you need to ask your associations is what their relevance is now? How are they going to help you and what guidance can they give?

10.  Conferences will simply not happen in 2020

ARLA has made decisions as referenced above – it will be a slow car crash of a PR disaster for many conferences if they continue this way. We have to realise that there will not be any conferences this year.

If they do go ahead, by a small miracle that we come out of this okay and are not 6ft under, I might suggest the value proposition is no longer the same. Meetings will be cautious, numbers will be down and so the opportunities for being an attendee or exhibitor is just not there this year.

11. There is no better time to be a friend to your customers

Aside from all the difficulties we are all going to face, there is no better time to prove that you care. Over the past number of years, you will have helped people to move – whether renting or buying – a process that is the most stressful period of their lives along with death and divorce.

This is no doubt going to be another stressful time for them again. Why don’t you simply see how they are getting on? They will be at home. They might appreciate now, more than ever, a simple call to see how they are. If you are helping out in the community, tell them about it, see if they want to help to.

Above all else, this is a time to come together. A time to reflect, realise things won’t be the same and to create a new normal that, while it might be tricky for a period, will benefit you in the long-term. Therefore, this isn’t about 2024 at all. Quite the opposite. Lets focus on June 24 first and make sure we all get there.

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How will the economy survive the current crisis?

There is no doubt that the current crisis, is one of the greatest tests our economy has faced in decades. There are without doubt, many small to medium sized businesses that will suffer greatly, despite the drastic steps taken by the chancellor to lessen the blow. Personally, I feel that rents, rates & interest should have been suspended during this period, to minimise the damage of this terrible situation.

However, moving forward, the question we may all be asking ourselves is, how will the economy cope with this? What will happen to the property market when it is brought out of deep-freeze? Despite the alarming figures suggested by many media sources, this is not the same as the banking crisis of 2008. The banks are in good shape, borrowers are not in negative equity and there is a very large number of businesses that have been able to continue operating though this crisis, albeit at a skeleton level.  The manner in which the nation exits from lockdown may have serious implications on what happens within the first few weeks, which is of paramount importance.

There are also factors at a greater level that once again, may save this island nation of ours. Whichever side of the fence any of you may have been during the charade that was Brexit, I would hazard a guess that even the most ardent of remainers must now be doing their sums and breathing sighs of relief (quietly of course) that the prospect of our economy being shackled to the chains of a financial abyss that may well be Europe after this, will be safely independent.

After the financial crisis of 2008, money poured in to the London market from countries outside of the EU because were WERE NOT part of the Euro, indeed, we were a safe haven. Most rising property markets are ‘bottom-up’ markets, that is, property at the bottom rises and pushes prices up throughout the market. The ripples that begin at the bottom in London, work their way upwards and outwards, not only throughout London, but gradually throughout the whole country. However in 2008, this was not the case, it was a ‘top-down’ rising market, investment from the top, raised the prices at the top end of the market in London, which for the first time , worked their way downwards pulling prices upwards. This is without doubt testament to our wonderful currency, the faith in our first class national credit rating.

It is without doubt, that if the forthcoming weeks and months are handled correctly, which I am very confident of, not because of party politics, but due to faith in the fiscal policy of those in charge, that our economy will not just bounce back, it will actually REBOUND.

Therefore, the issue we currently face is to get through the current crisis safely and to use this time to re-connect with our families, to re-connect with that which is most important and also to prepare to re-start our nation and recover, socially, commercially and financially.

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First ‘virus’ survey shows sellers expecting a five-month delay

First 'virus' survey shows sellers expecting a five-month delay

What is thought to be the first survey of sellers since the start of the Coronavirus outbreak suggests that they anticipate a five-month delay to their plans.
 
This means that the usual spring market surge may take place in late summer, assuming restrictions allow something like normal business to resume.
 
A survey conducted for online mortgage firm Trussle by polling organisation Censuswide shows that 49 per cent of those planning to buy decided to stop looking for a new home as a result of the lockdown.
 
However, fewer sellers pulled the plug with just 20 per cent deciding to halt proceedings on the sale of their home.
 
Overall, both would-be buyers and would-be sellers expect to defer their property plans for an average of just over five months.
 
“With the government’s latest plea discouraging buyers from moving house, It’s entirely understandable that people are putting off their housing plans” says Trussle chief executive Ian Larkin.
 
“At a time of financial uncertainty, it’s a good time to think about your personal outgoings. We know that people could save an average of £4,100 per year just by switching their mortgage to a better deal.
 
“During these uncertain times, people are taking steps to protect themselves financially. Reducing mortgage payments, the biggest monthly outgoing most homeowners will face, is a priority for many.”
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How to keep your buy-to-let afloat AND help tenants in the lockdown: From rent cuts to mortgage holidays?

“A Long Time Ago … In a Galaxy Far, Far Away…”
Landlords are eligible for three-month mortgage payment holidays
But should you offer tenants who are working from home a payment holiday?
Does offering a rent holiday place you in breach of your mortgage contract?
What legal documents do you need if you agree a rent holiday?
 
The coronavirus lockdown has caused severe financial strain for millions of people across Britain, prompting unprecedented financial aid packages from the Government for businesses and individuals alike.
 
While mortgage payment holidays of up to three months are being offered to both homeowners and landlords, who may struggle to keep up with repayments during the lockdown, renters have been told they will be able to stay in their homes during lockdown even if they fall behind with payments.
 
Meanwhile, the Government has officially asked landlords ‘to show compassion and to allow tenants who are affected by this to remain in their homes wherever possible’.
 
What does this mean for landlords in practice though? Should you be proactive with tenants and offer them a temporary rent holiday, knowing that they may be suffering?
 
From speaking to landlords and letting agents, This is Money knows that many are actively trying to help their tenants through tough times and willing to do what they can for those whose finances have been sideswiped by coronavirus.
 
On the flipside, how should you react to tenants asking for a rent reduction when you know full well they’re still working full-time from home and your checks when they moved in showed they had a big salary and lots of cash?
 
What should I do if my tenants want a rent reduction?
There’s no right answer to this but everyone agrees that the most important thing to do is talk to tenants to understand why they need a reduction.
 
Steve Harriott, chief executive of the TDS tenancy deposit protection scheme, says: ‘Under the new guidelines tenants are still liable for their rent, however, if they are facing financial hardship there is support out there.
 
‘It’s really important during this unprecedented situation that the lines of communication between renter and landlord are kept open.
 
‘Now is the time to be having an honest and frank conversation about rents and financial concerns, working together to put a rent payment scheme in place.’
 
Angus Stewart of online buy-to-let adviser Property Master argues that in most cases, it will make sense to agree to a rent reduction temporarily.
 
‘If they ask for a rent reduction it would be logical to look favourably on it if they have been a good tenant in the past,’ he advises.
 
‘If you can still afford to cover that loss for a couple of months it is a sensible thing to do as the last thing you want at the moment is an empty property.’
 
Jeni Browne, sales director at buy-to-let specialist adviser Mortgages for Business, says they have been talking to many landlords over the past fortnight and the most frequent approach is to defer rent payment rather than offer tenants a waiver.
 
The view from lenders is along the same lines. Bob Young, chief executive of specialist buy-to-let lender Fleet Mortgages, says many landlords, where possible, are already helping.
 
‘Providing temporary help, especially if they’re good tenants, is likely to be the sensible option for most landlords,’ he adds.
 
Will I be in breach of my mortgage contract?
In ordinary circumstances, it’s possible that allowing your tenants to pay less rent than agreed in their tenancy agreement would breach your contract with your lender. But these are not ordinary circumstances.
 
Young’s view, as a lender, is that you should be fine to agree a temporary rate reduction with your tenant if they require it.
 
Stewart agrees: ‘This is an exceptional situation and it is likely your lender would rather have some revenue from you than none. In these difficult times it is hard to see a lender wanting to enforce any breach of contract against you if you have explained the situation and are seeking to make some sort of payment.’
 
David Cox, chief executive of ARLA Propertymark, suggests where a rent reduction is essential, landlords, tenants and letting agents should again undertake the affordability check on the tenants’ finances that happens during the initial referencing stage.
 
‘It’s important to understand what tenants could afford on any reduced or furloughed income,’ he explains.
 
‘It would also need to be made clear whether this is a temporary rent reduction or a deferral.
 
‘If it’s a deferral, a payment plan will need to be set up to ensure the tenant clears the rent arrears that are accrued during this period.
 
‘Additionally, landlords and agents will need to be clear about whether they will implement the interest clauses that exist for rent arrears on most tenancy agreements.’
 
Should I offer my tenants a rent reduction, even if they haven’t asked for one?
 
This is Money has heard several examples of landlords generously offering tenants a temporary rent reduction during the coronavirus lockdown – even where tenants don’t request it.
 
Whether you should offer is really down to you and whether you can afford to.
 
Voluntarily getting into mortgage arrears on your buy-to-let is not sensible and will be costly.
 
Chris Sykes, a broker at Private Finance, warns: ‘Some tenants may have interpreted the government mortgage holiday announcement as a way for their landlord to simply pocket three months of rent, when, in fact, those mortgage payments will still need to be paid in the long run.
 
‘Clarifying this offers landlords a way to communicate with their tenants, understand their current position and potentially offer a reduction.’
 
He adds: ‘Every landlord will take their own approach to managing their tenants’ payments.
 
‘It often depends on a landlord’s long-term plan – and how much they value a tenant as part of this.’
 
Stewart also points out that many people won’t need a payment holiday: ‘There are still many people in secure employment and not in need of a rent reduction.
 
‘If your tenants come to you because they have for example lost their job or suffering a serious reduction in income, then you should certainly consider helping them.’
 
Will I need a legal contract in place?
It should be sufficient to have a letter confirming in writing what you have agreed with the tenant, the amount of rent they will pay and the dates the reduction applies, according to Stewart.
 
‘It is very important to have certainty on both sides and a written and signed agreement will help in this regard,’ says Stewart, who advises that landlords also think about agreeing a repayment schedule to make up any rent reductions or rent holidays.
 
‘For the tenant it may well be better off asking for a reduction in rent as less will build up in arrears,’ he says.
 
Young adds: ‘Obviously if you give a rent holiday you are not protecting your income, and you would certainly need something between you and the tenant confirming the arrangement in writing.
 
‘They may need this as evidence to support a claim for state assistance, for example.’
 
How do I apply for a buy-to-let mortgage payment holiday?
As is also the case for homeowners applying for a payment holiday, the sooner you contact your buy-to-let lender the better.
 
Nearly all lenders are reporting a huge surge in customer enquiries and we’re hearing lots of complaints about the time it’s taking to get through on the phone.
 
Depending on your lender, there may be an option to fill in a request online as a first step.
 
Many landlords have portfolios of properties and may need to make multiple applications for leeway from a number of different lenders.
 
It’s possible that your mortgage adviser will be able to assist you with this, though you should expect to pay something for this service.
 
‘It is absolutely essential to agree in advance any repayment holiday with your lender,’ warns Stewart.
 
‘To simply miss payments without that agreement will adversely affect your credit record.’
 
David Hollingworth, of mortgage broker London & Country, adds: ‘Make sure you understand the knock-on effect of a payment holiday.
 
‘Just because there are no payments made doesn’t mean that interest doesn’t continue to accrue.
 
‘At the end of the payment holiday the outstanding balance will be rescheduled over the remaining term, so payments will most likely be higher and more interest payable over the life of the loan.’
 
Will insurance pay out for rent shortfalls related to coronavirus?
There have been reports that insurers aren’t paying out where rent shortfalls due to coronavirus are given as the reason for the claim.
 
Indeed, both Young and Stewart agree that although different insurers and policies will offer different levels of cover, it’s unlikely that your rent arrears will be covered.
 
Check the small print in your policy document carefully.
 
Keep calm and carry on
While the lockdown continues, all the experts agree that finances will need to be flexible but the message to landlords is not to panic.
 
‘Landlords need to be sensible and use their common sense,’ counsels Young. ‘Some tenants will ask for relief and you’ll need to respond accordingly, weighing up both their and your situation.
 
‘This is likely to be a temporary issue and hopefully both landlord and tenant will be able to work through these issues with that in mind.
 
‘From a landlord’s perspective, investing in property has its highs and lows and you need to look at this with a long-term perspective. Indeed, investments of all kinds have their ups and downs, as those heavily invested in the equities market through their pension schemes have also discovered.
 
‘Property still remains a good long-term asset to invest in, despite what is happening in the market right now.’
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Furlough pay – some agents’ commission can be included

Furlough pay - some agents’ commission can be included

 

 

 

 

 

 

 

 

 

 

The government has amended the eligibility criteria and will allow some agents’ commission payments to be included in claims for Furloughed Pay.

An announcement came via NAEA and ARLA Propertymark which has received clarification from the government. A joint NAEA/ARLA statement says:

The clarification states that agents will be able to claim for any regular payments that they are obliged to pay employees including

– wages;

– past overtime;

– fees;

– compulsory commission payments.

Discretionary bonuses and commission payments however, and non-cash payments cannot be included.

In circumstances where the employee has been employed for 12 months or more, you can claim the highest of either:

– the same month’s earning from the previous year;

– average monthly earnings for the 2019-2020 tax year.

Where the employee has been employed for less than 12 months, employers can claim for 80% of their average monthly earnings since they started work.

The scheme is in place from 1 March 2020 for 3 months and may be extended if necessary. To be eligible for the grant, a furloughed employee must have been enrolled on the company’s PAYE payroll and cannot undertake work for, or on behalf of, the organisation. Staff who are working reduced hours are not eligible for pay to be reimbursed.

Where an employee has been made redundant on or after 28 February 2020, agents can re-employ them, put them on furlough and claim for their wages through the scheme.

A furloughed employee is free to take part in voluntary work if this is in line with public health guidance, as long as they are not providing services for their employer.

Furloughed employees are free to participate in training and this is encouraged as long as it is not part of work to generate income for the organisation within the furlough period.

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Virus crisis will drive more agents to become self-employed – claim

Virus crisis will drive more agents to become self-employed - claim

One of the industry’s highest profile figures has suggested the Coronavirus crisis could trigger many more agents becoming self-employed.

Nicky Stevenson – well known as former managing director of the Property Academy and now on the management team at Fine & Country – says the recent trend of agents moving from corporates to self-employment will not slam into reverse during the crisis.

“I actually believe it will go the other way and that employees, especially those left high and dry, will realise that the security of employment they thought they once had, isn’t quite as secure.

“Generally, people are more motivated by fear than gain, so for many the default is to stick with what’s familiar. On the other side of the COVID-19 pandemic, those that have been left high and dry have less risk and may well believe that now is the opportunity to be their own boss and have more control over their time and earning potential.”

Stevenson – who has previously been an agent at Chestertons, Davis Tate and Keller Williams – says the current necessity of home working will make agents think this is a possible permanent solution to any dissatisfaction they may have had.

“We have already seen a shift in office set ups, with some agents choosing to have one bigger office, rather than various smaller offices in different towns, and sometimes off the high street.

“[Now] the pandemic has forced the industry to embrace certain technology that until now may not have been forefront. I don’t think that ‘normal’ as we know it will be the same again and that every agent will be more tech enabled and experienced in working remotely.

“Now is also a great time to be learning. These ingredients in my opinion, is a great foundation to launch into self-employment” she explains.

Stevenson, who heads up the Fine & Country associate platform, says that business model provides an opportunity for what she calls “experienced, entrepreneurially minded agents” to own their own business without having the overheads of running a high-street or traditional agency.