I opened my first Kinleigh Folkard & Hayward office 43 years ago.
In the time since, that small office in Brixton with just two employees has grown to include 10 business divisions and an extensive branch network across London.
In all of my years in the business, I never could have imagined there would be a day when I had to tell the entire KFH workforce to go home until further notice.
Relocating over 800 staff from two big office blocks and 60 branches was a logistical nightmare but was amazingly executed by our team in the space of a few days.
Technology is more important to our business, and indeed the industry, than ever.
Although already on our roadmap for the year, we fast tracked the rollout of certain initiatives including two-in-one laptops to many and Microsoft Teams to our entire network, allowing us to stay connected across the business and vitally, with our clients and customers.
These decisions will serve us now and well into the future.
Despite this, we’re not firing on all cylinders.
The reality is that the industry will take a big hit and we have made the decision to furlough a large proportion of our team whose roles are impacted by the current Government restrictions.
But it’s hugely inspiring to see those remaining working harder than ever before to ensure that we keep business going and clients and customers happy, and perhaps most importantly, that all of our colleagues have jobs to return to.
Across our 43 years, we have weathered many storms including Black Monday in 1987, the Dot-com bubble at the turn of the millennium, the Global Financial Crisis in 2007 and of course now, the Coronavirus Crash.
During those turbulent times, we have always come out on top by working together and focusing on customers, clients and our people, and we are doing the same now.
With a market share of 9% across the London postcode region, we’ve got great visibility and influence over the property market in the Capital.
From conversations with clients and customers, there is a strong desire to keep deals moving where possible.
I would have expected a complete pause in activity, but our lettings business has been able to continue a relatively normal service via virtual viewings and deferred move in dates, albeit the volume of transactions are down.
As you would expect, we’re seeing far lower levels of sales exchanges and new deals being agreed, however communication with buyers and sellers continues as we are finding so many are motivated to move these transactions forward as soon as possible.
Remaining independent has allowed us to always take a long-term view of the market rather than react to short term pressures – this industry is sometimes hard enough without shareholders breathing down your neck.
It’s also why I’ve sought to create a truly diversified business that is focused on far more than just residential sales and lettings.
In all areas of property management, whether block management or residential lettings, it’s very much business as usual, albeit with deferred inspections and an increased use of virtual meetings.
I believe that employees are the most important asset any business has and it’s why my board and I are particularly focused on retaining our exceptionally talented team and have taken a number of prudent steps to ensure their return.
As of 1st May, we will have over 60% of our business furloughed until the end of June, but of course, should government restrictions be eased earlier, we will reassess this timing.
All employees, whether furloughed or not, are remaining on their full salary, and will receive all commissions due throughout this period.
With immense gratitude from me, the directors and senior management across all operational divisions of the company have agreed to take a substantial reduction in their remuneration for the remainder of this year.
It has been heartening to see phenomenal levels of support from our industry partners and peers – if there is perhaps a benefit to this, it is that we are all in it together and working to find creative solutions to complex problems.
In looking forward (cautiously!), I believe that the lettings market and other areas such as new homes will likely rebound faster.
The sales market will of course recover in time but buyers and sellers will likely require some form of Government support and we as an industry must look to capitalise on this once it comes.
Preparation is of course key – if I could suggest perhaps just one piece of advice, it would be to use this time wisely and plan ahead for reopening, even though we do not have a firm date for this.
The preparation of operational guidelines and instructions to keep your staff and customers safe while transacting will be key to kickstarting activity.
Technology is obviously going to play a leading role in this process.
I, like all of us, am waiting with bated breath to see what possible post-lockdown workplace rules will be revealed on Sunday.
We can expect a phased re-entry to what will be ‘new normal’ operations for our industry, and with that in mind, having some agility in our planning is going to be critical.
It is heartening to already see countries that were ahead of us in this pandemic, including Hong Kong, Singapore, China, New Zealand and even some in Europe, now returning to business.
In the meantime, enjoy the time with your families and stay well.
Lee Watts is the founder and Managing Director of KFH.
A brilliant example of what good looks like.
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Top company, top bloke. Great article Lee
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No histrionics, no chest beating, just great management and leadership, which should be applauded.
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This is a template of how well a leader has dealt with a crisis.
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Well done for remaining independent and this is certainly an example of proper company leadership, looking after your workforce first. Success follows if you look after your team.
Although KFH staff are notoriously arrogant, I admire what they and firms like the Acorn Group have done in London.
No place for corporate faceless organisations in this day and age. It’s all about personal long term relationships and to deliver that you have to have a great team of people with you who share the company’s culture.
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I don’t know if they’re arrogant or not. I’m intrigued about how KFH has been so successful as, from the outside, their offices and marketing are solid but not mind-blowing. Obviously some good stuff happening inside for them to have such a chunk of the mid-market.
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Personally never seen them as being arrogant. A great deal of their success over the years can be attributed to the quality and consistency of their staff.
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A lot of admiration for this bunch, i know they have their knockers in and around town but i think they are one of the better agents out there and a real success story.
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Compare Lee to Tim Martin. Talk about chalk and cheese. Martin couldn’t care less about his staff. All he cares about is reopening to ensure that the gravy train keeps running.
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A first class, balanced and objective piece. I wish you and the firm well.
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