How Many Fingers?

It is critical that an advisory agent provides up to date advice to any client when assessing value and marketing strategy. It is the industry in which we hold such expertise and have therefore been asked for relevant professional advice.

Not only are we expected to hold full in depth knowledge of the property industry, but an understanding of all other relevant factors, whether that be internal UK matters or external Worldwide occurrences. Changes in the property market can happen at a pace and can have an immediate effect on values, strategy and viability – just ask any agent about the effect of the Liz Truss mini-budget in September 2022!

When speaking with clients during our many years of providing advice on agency matters, you can normally cover the salient points from the fingers on one hand – the current and significant matters which hold a relevance to the marketing and valuation.

However, since late 2022 and into 2023, it occurred to us that one hand was not sufficient and can briefly outline our considered points in today’s market.

1. Rise in interest rates - property is effectively ‘married’ to the cost of money, whether that be development finance, the cost of borrowing for a mortgage or simply your business overdraft.
2. Cost of living – recently risen to record levels, but starting to peg back to relatively sensible levels, albeit fragile. It directly affects the retail and restaurant provision.
3. Ukraine War – whether we like it or not, any world war affects the UK and who knew previously how important the area was to our economy.
4. Brexit – it still haunts us to this day with the availability and increasing cost of certain labour in various sectors, plus the seemingly reams of extra ‘red tape’ with import and export of goods.
5. Pandemic – we tried to not mention it but most businesses are still dealing with the impact and future operational plans. Hybrid working is here to stay for sure and occupational requirements are under stringent review.
6. UK Government – potentially a change of government on the horizon and the modifications that inevitably occur when this happens. It doesn’t endorse stability and it has been 13 years since the last Labour control – unlucky for some!
7. Utilities – the huge jump in utility costs directly impacting business and no sign of reducing in the near future. Some costs have doubled or more!
8. Retail habits – the effect of the internet has been prevalent for some years and expedited since the Pandemic. Peoples shopping habits have changed and the High Street needs to adapt quickly or face the consequences.

There could be more, but you get the point. There are numerous factors which bear relevance to market conditions and any appointed advisor must be aware of these when giving professional guidance.

Make sure you speak to a trusted and knowledgeable agent – speak with Graves Jenkins.