We MUST avoid another boom and bust, urges Spicerhaart boss

| Paul Smith

Don’t be lulled by interest rate freeze

The Bank of England may have put off the inevitable by keeping interest rates at 0.5% for 77 consecutive months – but the only way is up.

And when that happens, we all need to be prepared for the impact this will have on the housing market. Borrowers will feel the squeeze as they struggle to pay the extra on their mortgages and householders will cut back on spending in order to make ends meet.

As someone who has ridden the rollercoaster of the housing market for almost three decades, I know all too well that once interest rates start to rise, they don’t stop. It may be slow at first, but gradually they creep up, stifling demand from those who once may have bought.

That might not be a bad thing in London and the south-east, where demand for property far outstrips supply, but there’s many a market town across the UK that ought to be worried if interest and mortgage rate rises dampen their housing market completely.

It’s something I hope will be considered by the new all-party Parliamentary group that’s been set up to tackle the housing crisis. Let’s hope it’s not just a talking shop. We need radical reforms – and fast – if we’re to avoid the old cycle of boom and bust.

There is nowhere near enough property in development, nothing on the scale that’s required. House builders are still land banking, the planning process is too long-winded even if reform is under way, and we need to be less precious about building on the Green Belt.

I’ve long lobbied on this issue and have spoken many times to housing and planning minister Brandon Lewis. Let’s see more garden cities with decent infrastructure and housing, tax breaks for house builders to encourage more building and incentives for budding grand designers looking to create a home of their own. Let’s see those interest rates remaining low and stable.

Let’s get behind the Government’s attempts to resolve the problem and see what wide-ranging innovative solutions they are proposing. And let’s play a part in tackling the issue. Otherwise it won’t just be the householders that are suffering – our industry will be far worse off too.

The true cost of digital

It’s not just the dairy farmers who need to be worried about operating at a loss. Have you worked out the real cost of promoting your properties online?

Digital marketing is a money pit and bumps up your business costs in all sorts of hidden ways. Try working out the cost of driving traffic to your own website. What does it cost you to get a lead, what’s the quality of the lead and what’s the cost of converting that to a valuation and listing?

Once you add website development costs and portal fees, then add in the time element of social media, email and content marketing – and time is money – plus any display ad costs, video, data analysis and staff training, you soon realise that the true cost of marketing property online is far higher than you think. And that’s not even taking into account traditional marketing techniques.

So where does this leave print advertising in newspapers, magazines and flyers? Will we even be able to afford them if portals keep hiking their prices? Agents have a blind faith that the local paper is going to get them business ­– yet the death knell for papers has been sounded, with their plummeting circulation and awful digital offering.

So what’s the alternative? Is there one? Does throwing more money at digital marketing always equate to more market share?

Inevitably, with increasing numbers of estate agents trying to occupy the online space, the cost of digital marketing is only going to get even higher – at a time when online agents are trying to push down overall fees.

So next time a customer moans about what they have to pay, sit them down with a cup of coffee and explain they’re not the only ones trying to keep up with the Jones’s. We all are too.

Why hide behind anonymity?

It’s great that the internet gives people a voice. I’m always interested to know what people think. But why hide behind anonymity? If you have a view, stand up and be counted.

That goes to the anonymous and alleged ‘ex-member of Spicerhaart staff’ quoted making unfound allegations on another property website about OnTheMarket.

People are entitled to their view if it’s based in fact.

But not when it’s a load of old tosh.

I started my working life as a photojournalist on the nationals. I always thought good journalism meant asking for a response.

If someone has a hidden agenda to bring down OnTheMarket, let’s get it out in the open.

Otherwise you’re no worse than the trolls who give the internet a bad name.

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20 Comments

  1. smile please
    August 17, 2015 at 06:50

    Why in your opinion do people have a hidden agenda to bring down OTM?

    Maybe they do not believe in it? Very arrogant of you to assume that we should all sing it’s praises.

    As for anonymity it’s because some are not into self promotion and also want to speak freely. You are a mouthpiece for a large corporate. You cannot say how you feel on certain subjects through fear of upsetting members of staff, investors, bosses. You have to toe the party line.

     

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    1. PeeBee
      August 17, 2015 at 10:26

      Hi, sp.  Hope you’ve had a good weekend following last weeks’ incessant harassment from your own personal #bunnyboiler?

      To a degree I would agree with you about the anonymity thing – well, I would, wouldn’t I? ;o) – that being said enough people know who “I” am and there are many more on here that I wouldn’t flicker an eyelid if they knew either.  Mores to the point – if I were to post as ‘me’ I would still say the same stuff – it would just have less effect – cos nobody wants to hear the rantings of a Tea-Boy these days…

      Which brings me on to the ‘Whistleblower’ malarkey.  This lad/ladette (I’m guessing the former) is, or was at the time of concocting the piece that got the Landlord down the other pub all moist and jumping around like a springer spaniel on steroids, STILL EMPLOYED by Mr Smith.  Either he hadn’t made his feelings known to his employers;  he was afraid to; or it was fabrication.

      His classic quote on 28 July in response to a number of comments speaks volumes:

      “I am currently looking to leave the company, for a number of reasons, but one of those reasons was the jump to OTM which is generating absolutely nothing.”

      Funny – SIX MONTHS following the “jump” and he is still looking to make his.

      The ‘insight’ that the “Whistleblower” imparted was little more than regurgitation of some of the two-year old objections he would have been able to copy and paste from EAT and here.  In fact, since last March ALL of the sensible and productive debate has been here rather than down the other pub so he would have spent more time here – yet never came to Ros with his ‘scoop’?

      I would suggest that Mr Smith has a right to know who is using his company name as a target and example.

      You know the old saying about glass houses and stones.

      Then again – with an attitude toward the job like his – maybe Mr Smith is best shot.

      Mr Whistleblower would be best suited looking for something outside the industry, I would suggest.

      ” I personally will not work for another agent that utilises OTM.”

      CRACKING reason to join up NOW, sp – save yourself all the chew of having someone like that fill one of your seats for a short time until they leave for “a number of reasons”…

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      1. smile please
        August 17, 2015 at 11:17

        He ha yes i am fine thank you, glad Ros blocked her though as started to water down the credibilty of the site.

        Although we may not as a group always agree at least it shows different thoughts.

        As for the other pub and comments i cannot comment as i rarely visit. However i would say they are entitled to an opinion, and from working at large corporations in the past i know it really is not worth while bring up concerns in the direction the company is headed as you pretty much blacklist yourself.

        As for anonymity i like it as i don’t have to worry about others using my comments against me.

        If you look at the individuals that do use their own name the majority (not all) use it to push their companies be it multi listing sites, online agents, hybrid agents, rate a company site.

        What i would like is a rep from each portal to make themselves known and chip in with comments on threads (not give them their own stories like many of the advertorials). This i feel would be of great benefit and we can see what they are thinking on a human level.

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        1. Robert May
          August 17, 2015 at 11:57

          It takes a brave soul  for a service supplier to post as themselves; the veneer of understanding is usually so thin they would struggle to cope with the inevitable Peebeeing. For others the very thought of bandying words with their customers is abhorrent.

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          1. smile please
            August 17, 2015 at 11:59

            I agree Robert, i do not expect it but would be nice 🙂

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          2. PeeBee
            August 17, 2015 at 13:51

            OI!

            I’m a softy wofty puddytat, really…

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            1. Robert May
              August 17, 2015 at 14:08

              …who takes no prisoners when it comes to service suppliers.

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              1. PeeBee
                August 17, 2015 at 16:29

                …and has a passionate dislike for hidden agendae! ;o)

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  2. No choice
    August 17, 2015 at 08:43

    Mr Smith, you make ridiculous decisions that are based on emotion and not fact/reason, which make your staff’s lives more difficult. Then you expect them to cheerfully give up their identity when they criticise you!

    I think that people at the head of large organisations whose decisions effect the well being of hundreds of staff should behave more responsibly.

     

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    1. new life
      August 17, 2015 at 09:42

      i could not agree more with your comments , staff will always bare the brunt of any corporate decision , as we are dispensable and easy to replace.

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      1. PeeBee
        August 17, 2015 at 13:56

        Staff bear the brunt of any MANAGEMENT decision – whether corporate, independent or whatever.

        And yes – we are.  NO-ONE is indispensable or irreplaceable.

        Worth remembering.

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    2. RealAgent
      August 17, 2015 at 13:56

      So I am interested to know; what ridiculous decisions has he made that as the CEO he doesn’t have the RIGHT to make?

       

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  3. Simon Chan
    August 17, 2015 at 10:04

    This guy is too boring for words.

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    1. PeeBee
      August 17, 2015 at 13:57

      A less boring comment would have been more apt…

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  4. Anonymous Coward
    August 17, 2015 at 10:50

    Don’t know anything about the man, but I wouldn’t work for the company as I know several that have – doesn’t sound like my cup of tea…

    That said, the article he has written is measured, sensible and reasonable. Even the bit about anonymity – just look at my username! I’ll admit that mine’s for fun because I enjoy that kind of thing.

    Interest rates are due to go up – some time. I guarantee that at least 50% of those people that should have been taking advantage of the low rates to either pay down their mortgage or increase their savings have done nothing of the sort.

    When the rates go back up there are going to be an awful lot of people on “liar loans” that are going to get caught again.

    This country urgently needs hundreds of thousands of new homes in places that people want to buy them. We have had 40-50 years of absolutely incoherent housing policy. This is something that the major political parties should collaborate on, not use as a political football

    The cost of digital marketing is already high, but you wait until every agent in your high street is fully SEO’d up AND all multi-channel social media marketing AND all going large on Google Adwords.

    Then the cost of the newspapers will look like a golden age of cheapness.

     

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  5. Gump
    August 17, 2015 at 10:54

    Gump is my nickname, pretty much everyone I know calls me it. Quite possibly born from my love of Dr Pepper and hopefully not because I’m not a smart man.

    Anonymity is a great thing, especially on this forum, you don’t know if your talking to a Junior Trainee Neg, Purchaser, Vendor or a CEO.

    As long as your contributing reasonably, who really cares who you are

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  6. dsprill
    August 17, 2015 at 13:00

    If anyone wants to read it, the article in question is here: https://www.estateagenttoday.co.uk/industry-views/2015/7/spicerhaart-whistleblower-otm

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    1. smile please
      August 17, 2015 at 13:11

      Thank you.

      It does raise some interesting points. And good to hear how staff feel with these choices made for them.

      Are they a real employee or not? – Its not that controversial so i would say yes they are. I am sure many employees do not like many choices management make but that’s part of being an employee! – I bet there are a number of employees in companies where they have not joined OTM and they want management to make the jump but have not.

      You cant keep everybody happy all the time.

       

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    2. Robert May
      August 17, 2015 at 13:33

      I am not sure Ros and Nick need hyperlinks to  old  EAT stories  posted on here.

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      1. PeeBee
        August 17, 2015 at 13:49

        Come on, Robert – you only have to look at the poster’s name to know who it is –  desperate pr effort by inept landlord…

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