Property professionals have told how the majority of businesses are acting responsibly and sensibly when it comes to the huge challenges and financial pressures of lockdown.
The sector is facing unprecedented changes to the way it operates, with management and consultation services between landlord and tenant replacing the sales and lettings meat and drink for commercial agents.
And the correct steps taken through the coronavirus pandemic are described as giving the economy the very best chance of bouncing back when restrictions are lifted - though the next month is seen as pivotal.
David Garness, managing director of Hull-based commercial property specialist Garness Jones, said his business has had to ‘ramp up’ its property management consultation services since Prime Minister Boris Johnson put the country into lockdown on March 23.
The firm represents thousands of commercial property landlords and tenants across the Humber, as well as further afield, and many have turned to his team for advice on issues such as rental payments and deferrals.
The situation has seen his team “working around the clock” to negotiate over payment terms as manufacturers, retailers and restaurants and leisure operators were forced to shut up shop with no fixed date for re-opening.
Mr Garness said: “These are very difficult times for many businesses, make no mistake about it, but we have been incredibly impressed at how people have been understanding and supportive of others, even when facing huge challenges and financial pressures themselves. We have found that people are being very sensible, and responsible. If you had asked me when we went into lockdown last month what position we’d be in now, I would have predicted many a dispute between landlords and tenants over rents and money owed.
“It certainly has not developed like that though. I think that is down to businesses and individuals who have collectively been responsible and sensible, and have of course appreciated the bigger picture.
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“I also must pay tribute to our team who have demonstrated their exceptional skills at a really tough time.”
Income from transactions is down, but all senior people were retained as Mr Garness knew experience would be valued. “We’ve effectively been working flat out as brokers and go-betweens to help negotiate and find a middle ground, advising on the government support available and planning a way through this, he said. “We are sure people will appreciate our help even more in the long term.”
Landlords have renegotiated rental terms to help businesses survive, switching from quarterly to monthly payments.
Despite the positivity, Mr Garness admitted that should the current lockdown remain in place beyond the current three week extension, pressure on businesses will become more intense.
“We’re in a position of uncertainty and many of the agreements we have come to are of course short term to see people through,” he said.
“If we get another month down the line and we are still seeing businesses unable to trade, many will face further difficulty. What we are doing as a business at this time is making sure we are fully geared up to support people through each and every stage of this.
“From my experience of the past five weeks, it is a challenge I know businesses will do all they can to rise to and emerge stronger.”
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Carl Bradley is a director at fellow pan-Humber chartered surveyors, Clark Weightman, based in Hessle.
He said: “Our day-to-day life has changed quite significantly. Of the deals which we had running and with solicitors, we have managed to complete some, but the majority have been put on pause while people take stock of where we are and where we are going to be. New enquiries are very, very limited and we are having to respect guidelines with viewings and meetings, so we are not out and about all day every day opening doors for people to look at properties.
“Commercial activity generally is much, much more reduced. Our website traffic is running at 30 per cent less than normally expect it to, but interestingly, people are coming on and staying longer.
“We are still providing a service, I’ve been to visit an empty premises on Monday morning. There’s no point launching it this week, it is like putting something on the market on Christmas Eve, but it will be ready, as will we.
“The main focus of the past few weeks has been dealing with clients and what we manage. There was never going to be a good time to lock down the country, but to do it just before rent due on April 1 didn’t give people time to think it through. There was a lot of knee-jerk reaction, with rent not being paid, some tenants ringing up and asking how to deal with it, and other tenants simply stopping payment and communication.
“A lot of time has been spent engaging with these landlords and tenants to make the best of what is a bad job. I don’t think it was over helpful saying landlords couldn’t take action against tenants not paying, as simply not paying doesn’t help anyone. I’ve worked really hard to signpost tenants experiencing difficulties in the direction of the likes of E-Factor, the LEP and local authorities to get the support they need.”
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The man who has had a call for the Humber Bridge toll to be scrapped during the pandemic to amount to nothing, despite further attempts from politicians, said one big change could be sector demand in the long term.
“Now we have all learned how to work remotely, demand for office space may change quite significantly in the medium to long term,” Mr Bradley said. “Whatever happens in the short term is the short term, but further down the line I think there is real opportunity here in the hospitality and leisure centre, that if we have teams working remotely, then whether it is once a week, month or quarter - whatever demand is determined as the right time - I think there will be a need to get teams engaging with each other. Whether that’s together over a coffee, a conference-style event or something more social, it is an opportunity for hotel and conference centres.”
There is also hope that the wider regional property market could make a quicker recovery than large swathes of the 海角视频, with a concentration of energy, food, ports and logistics sectors - all key.
Danny Gough, managing director of MyPad lettings agency, and director of My Agent estate agency, said: “The next 12 months will be interesting for the 海角视频 market but I am very confident Hull will pull through, we always have and we always will.
“Although this is much greater in magnitude, the nearest thing I can compare this crisis to is the 2008 crash. I was always confident Hull would be one of the least-affected cities, bouncing back quicker than similar cities and I was correct.
“In my view, there will be a small down-turn on property sales, affecting traditional properties the most, as regular buyers lose confidence in the housing market. Mortgage lenders have already started to reduce the number of products being offered and have changed some of the lending criteria for new mortgages, this affects the property market on the higher risk properties.
“The high-end properties should not be affected so much and the high-yielding investment properties should also remain fairly stable. The reason being, the sellers of these types of property are not usually in a hurry and will hold out for the right price.
“In the event of a big drop throughout the 海角视频, Hull can make a quick recovery as property values have already been relatively low, compared to other cities.
“Personally, I anticipate a mini-boom in renting, similar to the busy period just after Christmas each year. Many renters will be desperate to move, waiting for the restrictions to lift so they can find their new home. This keeps the investment sales market strong as most savvy property investors look at yield. If the rental market is strong, the investors will be confident in buying more buy-to-let properties.
“Unfortunately, for some investors who made poor investment choices and had not done enough research before investing, these may see their portfolio sink below market value and want to sell. I am sure savvy investors will be keen to grab a bargain.”
Client Jason Coleman, managing director of Iguana Developments, has brought forward a number of significant developments helping in the regeneration of Hull city centre and The Old Town.
He said: “The Glass House in Queen’s Gardens is now a few months away from completion, following the lockdown delay. We took our teams off-site to prevent the spread of coronavirus. However, we are still receiving enquiries from local people wanting to move this year. Some people who were in a position to move before everything came to a standstill are still keen, which is very promising.
“Some businesses are starting to return to work in France and Spain and although things will take a long time to return to ‘normal’, people still want to move. Perhaps we should all take some comfort from this.”