Tag: Coronavirus

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Third of agents say some staff will permanently work from home

Third of agents say some staff will permanently work from home

A third of agencies say at least some of their staff will be working from home permanently when the Coronavirus pandemic ends.

A survey by The Guild of Property Professionals reveals that while over 80 per cent of agencies believe a traditional bricks and mortar office will remain important – and that this would continue to form the basis of their business model – there are different views as to what form this would take.

When asked if they would consider a hub style agency in the future with agents working remotely, half said yes while the other 50 per cent said they were happy with their current model and wouldn’t want to change.

The Guild consists chiefly of smaller independent agencies, which according to chief executive Iain McKenzie makes it more likely they will regard a High Street presence as critical to promoting their brand and services, and to help them be part of their community.

“While most said that their office environment would need to be set up differently to ensure social distancing restrictions and health guidelines were adhered to, the majority were hoping to return to their offices and keep their agency model as it was” notes McKenzie.

“Although websites, portals, social media, and more recently virtual viewing and valuation tools, are key elements to the estate agency, many still feel that a physical office presence and being able to interact with the public will remain a large part of their business going forward, even with social distancing measures in place.”

In the short term, he says agencies are clearly open to accommodate whatever changes are required to meet restrictions imposed by the virus crisis.

“Around 53 per cent of members said that they would have fewer desks in their offices, with approximately a third saying they would enable some of their employees to work remotely on a permanent basis. If the last few months has taught us anything, it is that agents need to be adaptable, ready to innovate and of course resilient” adds McKenzie.

He says the Guild has worked with the Ministry of Housing, Communities and Local Government to develop the six-point guide for agents returning to work safely

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Agencies still getting leads and completing deals despite lockdown

Agencies still getting leads and completing deals despite lockdown

It may seem a long time since normal trading took place but many agencies are now finding they are picking up leads and some deals despite the lockdown.

Midlands agency Centrick says it’s seen positive results in recent weeks thanks to what it calls its ‘digital-first’.

Since the lockdown began on March 23 it has edited and uploaded over 140 virtual viewings. All the viewings were filmed before restrictions were put in place and the agency says that it has since had the time to edit and release them.

The agency has also devised a contactless handover so that tenants can sign contracts digitally and collect keys without having to meet face-to-face.

“Despite lockdown restrictions prohibiting people from moving home unless it’s absolutely essential, we are still seeing leads pour in thanks to the marketing campaigns we have in place. By providing services which allow consumers to engage with us while following social distancing rules – such as virtual viewings and instant online valuations – we have been able to find opportunities and keep the business ticking over” explains Andy Butts, Centrick’s group sales and lettings director.

The firm says its commitment to digital marketing has allowed it to continue generating leads, even though a large proportion of the market has been on hold for a number of weeks now.

For example, Centrick generated over 200 rental property leads over the Easter weekend alone. The agency has also continued to generate vendor and landlord leads through its ValPal instant online valuation tool. Many of these leads have come directly from Facebook ad campaigns, while it has also been promoting its hugely successful virtual viewings across social media platforms.

“Centrick is a model agency. It is adapting to a challenging market and still managing to interact with consumers while adhering to the government’s lockdown rules,” says Craig Vile, Director of The ValPal Network.

“The agency’s results show that the market is still active and demonstrate why committing to digital marketing during this tricky period can be hugely beneficial. Encouraging consumers to carry out instant online valuations of their properties can help agents to keep consumers engaged in the moving process now and fill their sales funnel so they can hit the ground running when the market becomes more active in the coming months” says Vile.The ValPal Network is a product of Angels Media, publisher of Estate Agent Today and other Today titles.

Meanwhile John Bray and Partners in Rock, north Cornwall, says it is still negotiating new sales and taking on new property.

“Last week we agreed a sale on a property with a guide price of £275,000. It was empty having recently been refurbished throughout … A local buyer viewed the particulars, and the video walk through, and entered into competitive bidding to secure the property above the guide price. Launch to agreed sale happened in just two days” explains John Bray partner Josephine Ashby.

“Another recent deal involved a brand-new property in North Cornwall. One of the buyers had seen the house, but the other hadn’t managed to visit prior to lockdown. They decided they were happy to proceed on the basis of a video walkthrough and the sale is progressing” she adds.

“Video walk-throughs are becoming common-place for vendors who aren’t happy to wait out the lockdown. Where property is vacant we are able to produce these videos safely, and serious buyers are often happy to buy without visiting the property in person.

“We are also using virtual staging for vacant properties to help buyers get an impression of what the property would look like furnished.”

Ashby says some vendors prefer to put their property on the market under the radar, appearing on the agency’s own website but not on the portals.

“Our web traffic is up 50 per cent since the lockdown, and 80 per cent of that figure is made up of new visitors. Telephone calls are dramatically reduced, but buyers and sellers who call are very serious. We have time to spend talking everything through in great detail.”

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Stamp Duty Holiday momentum builds as law firm joins the call

Stamp Duty Holiday momentum builds as law firm joins the call

A property law firm is the latest to back a call for a stamp duty holiday to help kick-start the housing market after the lockdown.

Collyer Bristow has joined the Royal Institution of Chartered Surveyors, Knight Frank, Home Builders Federation and others in saying that swift action is needed to prevent further damage to the market.

Janet Armstrong-Fox, partner and head of private client property at Collyer Bristow, says: “The residential market is all but at a standstill and will remain so until the current restrictions are lifted. Even then, a slow return to a buoyant market is predicted. Clearly something is needed to kick-start the housing market.”

She continues: “We recognise that this will be a sizeable challenge for government: stamp duty has been a cash cow for HMRC coffers and will come at a time when it will be looking to increase tax revenues following the extensive support offered throughout the Covid-19 crisis.

“Whilst a stamp duty holiday is unlikely, a reduced rate for a set period of time for homes under a £500,000 threshold, and perhaps even higher in London, would provide the stimulus needed to reignite the market.”

But Armstrong-Fox says the action is needed urgently.

“We would urge government to act swiftly in introducing any relaxation of the stamp duty regime as the rumours of such a move may further dampen the housing market with buyers and sellers waiting for fear of missing out on some impending relaxation” she urges.

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Now is the time for agents to go up-market claims Fine & Country

Now is the time for agents to go up-market claims Fine & Country

Fine & Country says now is “a great time” for estate agents to go upmarket and become “the luxury agent” in their respective areas.
 
F&C – which before the Coronavirus outbreak described itself as the fastest-growing premium estate agency brand in England and Wales – is hosting a series of webinars starting this week to push the possibility of agencies moving towards higher value properties to sell and let.
 
Nicky Stevenson, head of the Fine & Country Associates programme, will be leading the webinars which will be open to all agents wondering how to become a luxury estate agent and what a day in the life of a luxury agent looks like.
 
“The market has been massively impacted in recent times and the estate agency business is shifting. With the market currently on hold, this is the ideal time for experienced estate agents to relook at their opportunities, see how they can prepare for the months ahead and how they could take their business/career to the next level and bring in much needed additional revenue when restrictions are eased: says Stevenson.
 
Contributors to the four webinars – the first of which is this Thursday – include Alice Watson-Smith, who has premium property experience in the UK, South Africa, and currently operates in the French Riviera.
 
Others include Jonathan Hansford, last year named as the best overall operator from 325 Fine & Country offices across the world, and the well-known UK industry figure Sean Newman who has been working in premium property for nearly 20 years across the Oxfordshire, Northamptonshire and Warwickshire markets and has over 50 luxury agents across his network.
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Good News: Estate agents’ offices will be first to reopen says newspaper

Good News: Estate agents’ offices will be first to reopen says newspaper

Estate agents’ offices will be in the first category of High Street premises to reopen when the lockdown finally ends, newspapers claim this morning.

Although there is a widespread expectation that the lockdown will be extended for another three weeks, agents’ offices – along with coffee shops and restaurants – are today reported to be the first premises likely to be allowed to reopen in early May.

The claim comes in this morning’s Daily Star and Sun newspapers.

They say the recommendation has been made in a report written for the government by Conservative peer Lord Gadhia and Sir Jonathan Symonds, chairman of GlaxoSmithKline.

They suggest a limited re-opening of Britain’s commercial activities with appropriate social distancing measures until an anti-Coronavirus vaccine is widely available in 12 to 18 months time.

The papers say their report states: “The initial focus for reopening the economy should be on sectors that have the greatest multiplier effects with minimum risks – such as coffee shops and restaurants which support agriculture.

“The property market is another that has wide multiplier effects. We need to avoid a stop-start economy which would sap public morale and damage business confidence yet further.”

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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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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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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.”