Though 2021 has so far seen a booming residential property market, it is estimated that over 80,000 businesses operating within the housing sector were in financial distress in the second quarter of the year, which is only 6% fewer than at the start of the year. It is also 24% higher compared to the same time last year.

According to the latest official figures, activity is picking up as creditors, especially landlords, have become more aggressive in chasing debts. Businesses had also taken on unsustainable government backed debts during the pandemic in order to survive.

Inflation

Another factor to take into consideration is that inflation is very much here and will keep growing over the next 12 months, and thus will also chip away at cash in bank.

Also, with an increase of inflation and fears of uncertainty, customers will still want and expect the service, but in the back of their mind will choose to use their money differently. Expect constant arguments and gaslighting to make your life difficult, in order to not pay you what is due.

Ask yourself  -Do you have the energy? Do you have a plan to move away from these customers now and move to happy paying customers for a service they demand and that is very much required in the market?

Bank Closures

There has been a growing trend of banks closing accounts without any explanation. Something to assess is if you are prepared to move swiftly if your bank does this.

We recommend that you host your bank services with various different providers rather than putting all your eggs in one basket. For example, if you have a loan with one bank as well as your current account and savings account at the same bank, what’s to stop the bank from dipping in and taking more than you expect for the loan to be paid off – especially if they believe for whatever reason your company is facing financial distress now or in the future?

They will have a playbook of reasons to cite as an excuse. What will you do? Argue with the bank or take them to court? File a complaint letter? Do you have this valuable time on your hands? This is a very real and possible scenario.

Banks are also exiting retail markets. As cited in the Wall Street Journal, British bank HSBC Holdings PLC announced that it will sell most of its retail locations across the U.S., reducing 148 branches down to 58 and winding down an additional 35 to 40 branches. The remaining locations will be repurposed into international wealth management centers. The bank is repositioning itself from retail banking to focus on the banking and wealth management needs of its high-net-worth clients.

Changes in legislation and AML rules

Legislation and AML rules is something that is constantly changing at rapid speed. Are you up to date with the latest and upcoming changes?
It can be time consuming keeping up with when things come into effect and how it impacts you and this is something a reputable real estate firm can certainly assist with.

Real Estate Management and Advisory

Instead of waiting for disaster to strike why not enroll the services of an expert bespoke and reputable real estate management and advisory firm, such as ourselves.

We can advise and guide you with solutions to help minimise stress and the ordeal that these scenarios bring. Whether its by a quiet conversation that can be had by telephone or face to face, we are here and understand as we have also made the mistakes in the past and navigated our way out and know how to help and ensure success.

Call  us direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.