I have read a lot this week about firms downsizing.
The market is slowing and this is the time when firms will think about what they need to do.
Some firms will start to make staff redundant (if they have not already done so) and my heart goes out to those staff who are put in that position, both staff and business owners.
But as firms of all sizes consider their futures, it is important to be very aware of what not to do, and one of those things that firms could potentially think about doing is reducing fees. Again, I am that stuck record about fees; but remember that the last time we entered into a downturn in the property market after the Northern Rock crash?
Conveyancers did not shoulder as much responsibility as they do now. That responsibility is not going to decrease in a declining market and my fear is that some firms will now reduce their prices (or perhaps even increase the referral fees that they pay to agents) even though the responsibilities we have are greater .
This means that the expansion of firms in a growing market and their subsequent reduction in a slowing market is a spiral. If there is another SDLT break (and I really hope that there is not) or if the Government think of some other way to boost the housing market, there will be a mad scrabbling around to find staff.
Keep prices high – don’t be forced to make drastic decisions to save money.
