“Tough decisions lie ahead” says epropservices CEO
Jon Cooke, CEO of eProp Services, parent company of Fine & Country and The Guild, says without an extension to furlough payments beyond May, agents will have to consider redundancies.
A substantial percentage of staff have been furloughed across the property sector and are at risk of losing their livelihoods if the government does not extend the job retention scheme past 31st May.
Jon Cooke, Group CEO of Epropservices, the parent company of The Guild and Fine & Country, says that while many estate agencies have made their companies as lean as possible, transactions are greatly impacted, so many will have to make some tough decisions at the end of May – without an extension to the Coronavirus Job Retention Scheme (CJRS).
“With a large number of staff furloughed and salary costs greatly reduced, many agencies have hunkered down and ride out the storm for the short term. However, 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,” adds Cooke.
Fast recovery
“Unlike other sectors such as pubs, cafes and restaurants, that should see a relatively fast recovery, the sentiment-driven property sector will take longer and will need more support from the government,” says Cooke.
While it seems that the majority of agents’ transaction pipelines remain intact, it will take a while before transactions complete and revenue streams flow again. If restrictions are lifted on 1st June and transactions resume, it will only be late summer that agents will start to see the fruits of their labours.”
“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,” Cooke adds.
“While the government has already forecast an estimated cost of £40 billion on the initial three-month scheme, failing to take further measures to protect the industry would be far more financially damaging,” he concludes.
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