Property

How will the cost-of-living crisis continue to impact the property market?

With both consumers and business leaders feeling the impact of the cost-of-living crisis, the big question being asked is how it will continue to impact the property market and what business owners in the sector can do to stay savvy?

Property Reporter
4th August 2022
Question 901

Alongside the ongoing issue of house prices, and the question of price drops, especially after the big rises we’ve seen, low stock markets and difficult recruitment space, agents are tackling lots of challenges. Couple this with big rises in wage bills, increased operating costs and inflation pressures that the UK hasn’t experienced since the 1970s and business owners need to find the right ways to help them save time and money.

Cloud-based CRM solution for the property industry, Openview, part of iamproperty, shines a light on the impact of the ongoing cost of living crisis and demonstrates that the right investment can help agents to succeed.

Inflation recently hit a fresh 40-year high of 9.4% and is expected to continue to rise, causing the cost of essentials to spiral and, in turn, having a direct impact on those running a business, living and working in the UK.

Industry changes caused by inflation

High inflation doesn’t just impact consumers, but businesses too – and in particular small and medium-sized businesses, which account for most agencies in the country.

Adam Rackham, Openview’s Operations Director, said: “Inflation is not limited to just our personal lives, but it directly impacts Estate Agents too and the way they are able to conduct business.”

“The cost-of-living crisis is already impacting the property market and is putting pressure on agents’ already squeezed margins. To combat this, but keep a high quality of service, agents need to make sure they are investing in the right places, to help them to save time and money.”

Investments to help agents succeed

The cost-of-living crisis is set to continue to rise and put more pressure on UK businesses and households. However, savvy investment choices will help agents take more control and successfully grow their businesses.

Investing in the right kind of places, including software and online tools can make room for growth and manage costs by streamlining processes, generating efficiencies, cutting down on admin tasks and improving productivity.

Rackham said: “When money is tight, it’s a time to box clever and spend wisely. Agents might be looking at ways of cutting costs, but working smarter, faster and better could actually bring more rewards in the long term. So it’s about choosing the right automated processes, and the right software, to reduce workload and free up agents to do what they do best.

“That, in turn, will help to generate more leads and instructions and, ultimately, more profit for an agency.”

Rackham continues: “Investing money into the right places can help to build back any money that businesses might feel they are losing out on. The right software can grant agents with more exposure and a greater pool of would-be clients during a time where the economy is changing and creating challenges.”

He concludes: “PropTech services are here to automate labour-intensive processes, freeing up more time for growth and offering the best possible customer experience.”

“They can also increase business opportunities and give agents back that most valuable of things – time. This alone can make a dramatic difference when it comes to growing a business.”

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