Government needs to clear up commission confusion

Last month, the UK government announced a general lockdown to protect lives in response to the COVID-19 pandemic, with multifaceted consequences that have impacted our work and everyday lives. RICS has responded by seeking to protect our institution, members and standards within the industry, while ensuring adherence to all government advice. The natural and built environments are integral to all aspects of the economy, and chartered surveyors contribute to all sectors, whether through valuation, commercial or residential lettings, infrastructure projects, and management of our natural capital.

Isolation and self-distancing are short term measures that have the potential to have a long-term impact on the property industry, especially sales and lettings. A key component of recovery will be to ensure that consumer confidence is maintained. Without consumer confidence, we will not see the movement needed to stimulate and reinvigorate the property industry. However, before sales and lettings can recover, the current workforce must be maintained.

We support Propertymark’s ambition to encourage the government to look at the wage structure of those working within lettings and estate management. They tend to work on low base wages which are supplemented by commissions. Due to the current limited activity within sales and lettings, employees within the industry are being punished financially.

Government needs to look at commission-heavy industries and update their offer appropriately. The government updated their Job Retention Scheme guidance to include compulsory commission, however, the use of the word compulsory could potentially exclude those working within lettings and agency. We urge HMRC to clarify this position or re-examine the policy to include all industries that may be adversely affected through non-inclusion of commission in pay equations.

We must protect workers and ensure that they can support themselves in this unprecedented crisis. Government has done so much to address the sudden uncertainty that COVID-19 inflicted, now they need to continue to provide clarity regarding wages for the maintenance and recovery of the industry and its workforce.