I speak to lots of businesses across the property sector, I’ve had different feedback on how the market has been. Lots have reported that property sales have been particularly challenging throughout the year, particularly as we have got close to each Brexit deadline. For example, we’ve seen the lowest October rise in house prices since Oct 2008 (https://www.theguardian.com/business/2019/oct/21/lowest-october-rise-in-uk-house-prices-since-2008-financial-crisis)
Of course, uncertainty over Brexit has been the key reason we have seen this affect on the market.
This has also caused a number of property developers to push back launches throughout 2019 as they also wait for a decision in Parliament that will bring some confidence to the market.
How this affects the labour market…
As everyone presses “pause” the labour market also stalls. Less opportunities are available so fewer people are moving to new companies.
Despite the fact there are fewer opportunities, we still have a very “candidate-short” market. However, although finding top quality people for your organisation is still extremely difficult, there is less competition for candidates right now as businesses wait to see what happens in Westminster.
Creating a backlog…
This is creating a backlog. The development launches that have been postponed are still there. Companies growth plans are waiting to be realised, they have just been put on hold for a decision.
What happens when the damn bursts?
Once some sort of decision is made – whether it be the current deal presented by Boris Johnson, or a slightly tweaked one from Jeremy Corbyn, or referendum between one of these deals and remain. Then EVERYONE will be looking to hire, ALL at the same time.
This will mean finding, and even more importantly, securing top quality people will be even more challenging than it is right now. There will also be upward pressure on salaries and the offers required to secure those people.
Therefore, the savvy business leaders will be looking to snap up the top talent that is available right now before everyone is in the market.
Just as in property, the time to be active is when demand is down. That’s the time to maximise your investment.