August 2020 Impact of COVID-19 on RICS Professionals Survey

Market activity remains static, confidence largely positive

• 53% continue to experience reduced workload since the start of lockdown
• 52% have colleagues on furlough
• 75% are positive or at least cautiously optimistic for next 12-24 months

Our August survey of RICS professionals on the impact of COVID-19 reveals that workload and new business enquiries remain static since the start of lockdown and around half have colleagues still on furlough. Professionals surveyed across the UK reported challenges with just over half seeing a decline in cash flow, 18% reporting redundancies in their firm and only 7% reporting no effects from the impact of COVID-19.

Remote working is a continuing trend with half of the profession with colleagues mostly home working and just over a quarter with all colleagues working from home. This has sparked innovations across the profession including:

• Virtual inspections and data collection
• Social distancing protocols
• Web based marketing
• Online desk booking facilities
• Investment in online conferencing technology
• Hiring regional specialists
• Investment in cloud data storage
• Enhanced risk assessments

Despite challenges in the business environment the level of concern amongst the profession about the impact of COVID-19 is mixed with 40% equally split between feelings of slight concern and concern and almost 20% feeling very concerned by the immediate impact of the pandemic..

Confidence levels for a longer term recovery are more positive. Around 13% reported feeling very high levels of confidence for the next 12-24 months.  A majority (62%) report feeling cautiously optimistic  with only 6% reporting a very low level of confidence for the next two years.

Core areas of future challenge were cited as:

• PII availability
• Safety implications of COVID-19
• Changes to building regulations relating to high rise buildings
• New approaches to valuation and rent reviews
• Landlord and Tennant disputes
• Contractor claims for project disruption
• Building back better, more responsibly

Through this regular monthly COVID-19 survey of the profession we seek to gain insight into the experience of chartered surveyors from different sectors of the industry across the UK and to provide support in areas of concern.

Support has been requested on the provision of PII insurance, resolution of disputes, guidance on the reopening opening of markets and influence with government to aid the sector during the recovery  in particular supporting SMEs.

We are aware that over the past 18 months, there have been significant issues relating to the Professional Indemnity Insurance (PPI) market, with reduced availability, increase

As part of our support for the profession, and to help ensure the continued availability of adequate and appropriate PII, over the coming two months we are confidentially and securely gathering PII data from RICS regulated firms in the UK. You can find out more and share information here to help us find a sustainable solution.

To help landlords and tenants comply with the government’s new Code of Practice we are offering an Independent Rental Evaluation Service that supports landlords and tenants to achieve a commercial settlement acting responsibly in negotiating ways forward after the COVID-19 crisis and using a third-party mediator to help with negotiations.

Guidance for the profession has been issued on dispute resolution and many other aspects restarting operations after lockdown. Specific guidance and support is available for Small Businesses during this challenging time.

In addition to guidance on surveying safely in the face of the pandemic RICS has also issued guidance on safety assessments of external wall systems for higher rise properties. The External Wall Fire Review form (EWS1) was designed to ensure external wall systems be assessed for safety to enable lenders to make decisions on funding. 

Our government advocacy continues with RICS meeting with Ministers and senior officials with a focus not just on Westminster but on the whole of the UK, with an active programme of engagement with the administrations in Edinburgh, Belfast and Cardiff. In all three nations we are influencing the reimagining of our sectors in the post COVID-19 world. Our priority is to support the profession with RICS placing an emphasis on three main policy areas: housing supply, town centre and high street renewal and sustainable infrastructure. We are leading the direction of Build Back Better through our influence on Renewing the UK’s housing stock, Repurposing of the high street and Regeneration of our infrastructure to offer sustainable recovery from the pandemic and development of greener more vibrant and socially valuable communities in the longer term.

Further information on our ongoing government advocacy activity can be found here.