PROFILE
Looking after the staff includes regular
jollies, an annual conference and a massive Christmas bash Looking after the staff also leads to another dilemma – how much growth can a company take without losing the family feeling? “It’s an issue,” says Ivor, “If it got to the size when I didn’t know everyone I don’t think I’d want to do it.” This is clearly a very ‘personal’ agency.
The people matter very much, the company image is also a very high priority. The website is clean, modern, user friendly, their offices are smart, uncluttered and welcoming and their bi-annual magazine is glossy and fun, but informative too. It’s Ivor’s baby. “The magazine has a print
run of 125,000, most of which are door dropped to every property that could conceivably, come onto our books. It doesn’t bring hundreds of instant instructions but I view it as a major element of our awareness strategy and an important differentiator of our brand. I like publishing it, I enjoy the creative element and I like the fact that our managers are also involved in it. It is expensive, around £130,000 per issue, but it works alongside our presence on all the major portals and our business model of lots of smaller branches in key locations.”
The boTTom line Size matters and so does money, of course. London has fared better than many other cities during the last two years, but despite the brave face, many agencies’ sales volumes plummeted, taking pretty profits and turning them into unattractive losses. D&G didn’t escape, but this year will be better, says Ivor, with great confidence. His views on the market are inline with
most London agents; the market is still fragile and the only buyers are those with healthy accounts at the Bank of Mum & Dad. “The average starting price in D&G Land, for a first time buyer (FTB) is £250,000. And they won’t get a mortgage for more than 60-70 per cent, so that means a deposit of £75,000. How many young people have that stashed away?” This clearly increases demand for rented
homes, with the unhelpful effect of rising rents, in D&G land, of 20-25 per cent over the last year. Even D&G’s tiny Pimlico office did 30 new lets in September, a huge increase on the normal demand. “Whether it’s sales or lettings”, says Ivor,
“There is a major problem in London’s housing, and the blame largely lies with the planning authorities. For the last five/ten years they have given permissions for all
44 NOVEMBER 2010 PROPERTYdrum
There is a major problem in London’s housing and the blame largely lies with the planning authorities.’
the wrong type of housing. People used to live in three bed terraces or semis, with gardens and space around them. These buildings worked as real homes, they liked living in them. Now, we have row after row of blocks of tiny flats that no-one wants. They have no infrastructure, shops, pubs or schools. They’re not what people want!” The banks also come in for a bashing;
“They should have been penalised for the mistakes they made. They are making massive profits again but still, they are not lending. And even though we, the public, own them, we have no say in what they do.”
The fuTure The market is set to be busy, but tricky, over the next couple of years, with a double balancing act between supply and demand and affordability and finance. How do D&G plan to hold their market share and “be the most trusted and successful agent in London”? “There will be even more competition”, says Ivor, “London prices mean that property is still a very profitable game and many agents will go to any lengths to get the business. Sellers are attracted by smart agents offering high valuations and they are duped by agents who claim to have ranks of international buyers waiting to buy, even though their property won’t sell to those buyers.” “Is that why you promote your
professionalism and membership of the various bodies; to attract sellers and landlords?” I ask.
“No! It really doesn’t make any difference
at all. People are interested in the highest valuation and the fastest sale/let. They take no notice at all of the logos on the window. In fact, I sometimes question why we do ‘belong’. The professional bodies are antiquated, stuck in the stone age. They aren’t heard by the Government or CLG. They rumble along, doing nothing.” What about the internal point of view,
the benefits from training and recognition? “Yes, the professional bodies offer training, the RICS training is intensive and still highly regarded. And, while we train all our staff internally, last year we were told that to be members of the NAEA/ARLA our offices had to have at least one staff member with the Technical Award in each office. So I, always at pains to do the Right Thing, arranged for every member of staff to study and take the Technical Award. Considerable time taken out of the office, extremely significant financial cost, but worth it, to comply and go further. What happened? Most members of NFoPP took no notice of the demand for qualification, so the time limit has been extended for another year. To say I was furious is an understatement. I was absolutely furious!” “Yes, I can understand that”, said I.
“In fact”, said Ivor, “I’m furious quite a lot of the time these days!” It’s tough, doing the Right Thing.
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