Urgent call for solicitor estate agents in Scotland to be given equal business rates relief

Urgent call for solicitor estate agents in Scotland to be given equal business rates relief

With lockdown measures extended by at least another three weeks in Scotland, ESPC and its member solicitor estate agents are calling on the Scottish government for parity across the UK for solicitor estate agents accessing the business rates relief scheme.

The differences in approach between the Scottish and UK governments have meant that while estate agents in England receive full business rates relief and have access to a £25,000 grant per branch, estate agents and solicitor estate agents in Scotland have been excluded from the Scottish scheme, leaving small family run businesses particularly vulnerable.

This means the income of ESPC members and other estate agents across Scotland has dropped significantly, and this is unsustainable. Many of these agents are small local businesses on the high street, providing employment and services across Scotland’s communities.

Ron Hastings, director of Hastings Legal, a solicitor estate agent based in the Borders, said: “From a promising start and record sales in the first quarter, including an all-time record for sales in March we have seen business for April completely dry up.

“There has been a dramatic fall with no new business to provide income to run the business in the months ahead when we finally reopen in whatever fashion that is allowed. Restaurants, pubs and the hospitality sector in general have had to face the same challenges – fixed costs still the same but no income. However, they don’t have to pay any rates for the next 12 months so that’s one expense they don’t have to face whereas most businesses like ours do.”

Michael Maloco, senior partner at Maloco + Associates, a Fife-based solicitor estate agent, said: “As a successful provincial firm, every week we are closed means we are seeing a drop in fee income of about 85 per cent or £15,000. That is unsustainable, of course. Like most other firms with a high dependency on property, our biggest challenge cash flow wise will come in late June, July and August when the dozens of homes we ought to have sold during the period of lockdown and the resultant conveyancing will not be there to settle depriving us of another £100,000 – £125,000 worth of fee income, in my estimation.

“That will be exactly when all of the payment holidays, deferments and reductions negotiated with suppliers will be coming to an end. Without some form of assistance as being enjoyed by estate agents down south, some of these local Scottish businesses may not survive.”

Paul Clancy, property director at Clancys Solicitors & Estate Agents, a family-run business in Edinburgh, said: “As a result of the present lockdown conditions, we have closed both of our offices and have all staff working remotely from home. We have had to invest in further equipment in order for our team to work remotely. Our offices shall remain closed so long as the Scottish government advice continues that the general public should stay at home.

“As our office is not being utilised nor should it be in operation during lockdown conditions, we firmly believe solicitors and estate agents offices should be included in the business rates relief scheme as it can be clearly demonstrated our business cannot function as normal at present.”

Lauren Daly and Fiona Ford, directors of Ford Daly Legal, a Fife-based solicitor agency, have had to furlough many of their staff, but many of their overheads remain in place.

Ms Ford said: “We’re doing everything we can to save our family business. Having just recovered from the impacts of the 2008 financial crash, we now find ourselves right back there, in terms of the challenges we face.”

Paul Hilton, CEO of ESPC, said: “Despite recent assurances from the Scottish government about the funding options available to businesses, the fact remains that there is a significant disparity in support for this sector in Scotland and England. Solicitor estate agents are reliant on property transactions for income, and therefore require significant support in order to make it through the coming months.”

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