APC Series: Know your market

Jen Lemen looks at market awareness for students and APC candidates. Why is it so important to know your market? How can you ensure that you are up to date and can advise clients diligently and professionally? Rule 2 of the Royal Institution of Chartered Surveyors’ Rules of Conduct says: “Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.” The crux of the matter is that you must only undertake work where you have the necessary knowledge, skills and resources to do so. RICS says that you must maintain and develop these throughout your career, through continuing professional development and ensuring that you are up to date with the latest professional, regulatory, legal and technical standards. Being market aware is, therefore, a key part of ensuring that you are professionally competent. Ways to become market aware There are a number of ways you can keep on top of the market, five of the best of which are highlighted here. 1. Read the property press Reading a good quality newspaper (or a range of newspapers to understand a range of political and economic perspectives) and the property press is a great way to build your market awareness. Personally, I read EG each week and receive a daily email news summary. I also read specific press for my area of practice, focusing on the retail market and property development. You will need to find sources of information relevant to your area of practice – ensure that they are valid, reliable and accurate. I also read a number of peer-reviewed journals for the latest research into the property industry, alongside watching YouTube videos, listening to podcasts and reading blog articles written by eminent industry figures. Find what interests you and it will pay dividends in terms of your market awareness. 2. External networking Networking is a great way to meet like-minded surveyors and gather market intelligence and knowledge. Events come in a wide variety of formats, including RICS Matrics, events run by local solicitors, regional property associations, wider RICS events, business networking organisations, Chamber of Commerce meetings and CPD events. Attend a variety of different events to see what you enjoy most. Don’t be afraid to get chatting – everyone is anxious the first time they attend. If they know someone already at the event, ask them to introduce you to someone you know or just introduce yourself and say that you are new to the event. I have found that almost everyone is friendly and will be happy to get you involved. 3. Internal networking Your own firm and colleagues are an excellent source of market awareness. Speak to colleagues in other departments to learn about cross-selling and lead generation. Ask more senior colleagues to mentor you or introduce you to other colleagues or different lines of work. Building your experience, client experience and contact base will help to develop your market awareness, as well as your career prospects. Don’t neglect this form of networking. 4. Online forums There are some excellent online forums, including those hosted by the RICS, the Surveyor Hub Community and LinkedIn. Meet other surveyors, discuss market issues and raise your awareness of what is going on in the industry. Don’t be afraid to share your views, but do ensure that you are posting responsibly and respecting client confidentiality. 5. Client contact Get involved with your own clients – or ask to be included on a wider variety of client instructions. Being client facing is an essential part of becoming a chartered surveyor – this includes managing your own clients, holding client meetings, reporting to clients and agreeing new instructions. You will build your market awareness from speaking to clients and understanding their objectives and businesses. Ensure that you respect client confidentiality, especially if a client discloses information that is not available publicly or within the wider market. Hot topics Now you know how to build your market awareness, what types of things do you need to know more about? Here are five current market issues you should be aware of, though precisely what you need to be aware about will depend on your area of practice. 1. Interest rates Interest rates have a key role in making markets, influencing demand, supply, financing and investment. Know what the Bank of England base rate is and how it has moved historically, together with how it might move in respect to the UK’s inflation target in future. Having an idea of how interest rates affect the market (and your clients or area of practice specifically) will help you to give diligent, professional advice. 2. Market rents and yields You need to have a robust understanding of market rents and yields for the markets you work within. This will be backed up by accurate, reliable comparable evidence – but a wider understanding of trends will help you to analyse properties and advise your clients accordingly. 3. Wider market factors There are many market forces that affect property prices, for example political climate, natural disasters, taxation and new legislation. Being aware of these will help you to tailor your advice and ensure that clients are aware of potential risks or rewards that they may encounter. For example, if you are involved in advising on the hospitality sector, being aware of a new business rates relief scheme or increase in VAT on food sales would be key market awareness. 4. Property development If you are involved with advising on a client’s property asset, it is prudent to have awareness about new development or renovations in the local area. Drive and walk around the area to pick up market awareness, as well as looking on the planning portals and reading the property press. It could be helpful to find out about the specification or ESG credentials of these schemes, or perhaps the rents, yields or values being achieved. 5. RICS guidance Being aware of the latest RICS guidance and best practice for your area of work is essential. This could include the latest RICS recategorisation of professional guidance, eg professional statements becoming professional standards. Many hot industry topics are subsequently accompanied by new RICS guidance. Being aware of this will help you to advise clients diligently and professionally. It is recommended that all surveyors read the RICS Rules of Conduct competence case study. Jen Lemen BSc (Hons) FRICS is a co-founder and partner of Property Elite Photo by Absolutvision/Unsplash