2016 Home Moving Trends Key Findings

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Thank you for your interest in the Property Academy. We provide information, insight, ideas and inspiration for individuals in the property industry. We passionately believe that every individual and company, no matter how experienced, should have the opportunity to fulfil their potential and be the best that they can be. Our aim is to encourage, challenge, motivate and inspire those who strive to achieve this. In this document you will find key findings from the largest independent Home Mover Survey to help you make the best decisions in your business. We have also included top ideas that Property Academy Mastermind Members have shared with us over recent months and hope that these offer food for thought.


HOME MOVING TRENDS SURVEY 2016 KEY FINDINGS 14,530 people selling their home or investment property in 2016 took part in the Property Academy Home Moving Trends Survey. Participants engaged with single office estate agents through to the corporate estate agents and every size in between from different parts of the country.

Did you put your property on the market for sale...

19%

When I found a property to buy

81%

Before I found a property to buy

Property Academy 2016

Did you visit estate agents' websites before inviting them to give a valuation?

44%

56%

Yes No

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Did you read reviews on your selling agent?

40% 60% Yes No

Property Academy 2016

If yes, did these influence your decision to appoint an agent?

42% 58% Yes No

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Did you visit the office of your selling agent?

Yes, prior to selling

32%

Yes, during the selling process

34%

No I did not visit the agent's office

34%

31

32

33

34

35 Property Academy 2016

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Have you changed from one estate agent to another?

24%

76% Yes No

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If yes, what was the key reason for leaving the original agent?

Poor service

56%

They recommended unqualified/ unsuitable buyers

14%

Lack of communication

22%

Unhappy with valuation/price changes

8% 0

10

20

30

40

50

60 Property Academy 2016

Did you consider selling your property through an online agent only (one without a high street office)?

30% 70% Yes No

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What would be the primary reason for using an agent with a local office over an online agent? (Tick one.) Value local presence

17%

Ability to meet face-to-face

35%

Their local knowledge is important

38%

It's more convenient

10% 0

5

10

15

20

25

30

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What would be the primary reason for using an online agent without an office? (Tick one.) Cheaper fees

74%

Easier to deal with

6%

Recommended

11%

More innovative

9% 0

5

10

15

20

25

30

35 Property Academy 2016

Did the stamp duty land tax affect your budget?

30% 70% Yes - I wanted to buy within a specific stamp duty land tax banding No - it did not affect my budget Property Academy 2016

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Have you had an online viewing where the agent showed you round the property in real-time?

8%

92%

Yes No

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Would you consider viewing online prior to a physical viewing in future?

40% 60% Yes No

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How did you choose your conveyancer/solicitor?

Estate Agent recommended

40%

Friend recommended

20%

Previous customer

28%

Searched online

12% 0

5

10

15

20

25

30

35

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Has the decision for the UK to leave the EU impacted your decision to move? 4%

Yes - I delayed until the outcome

7%

Yes - I think property prices have decreased Yes - IÂ think property prices have increased

2%

Yes - I decided not to move

2%

85%

No - it has not impacted my decision to move 0

15

30

45

60

75

90 Property Academy 2016

We will continue to reveal additional findings and what this means for you within our groups, at our live events and also within our free four-i newsletter.

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four-i is the perfect start to my week! It always arrives at 7am every Monday morning, packed with great ideas, wisdom and insight. KEVIN EllIS - lAND & NEW HOMES NETWORK

Are you missing out on our free four-i weekly? We send it out first thing every Monday morning to give valuable food for thought for the week ahead, so don’t miss out on getting four-i monthly direct to your inbox - absolutely free! four-i monthly was launched last year to provide Information, Insight, Ideas and Inspiration to those in the property sector. It is packed with interviews with industry leaders from all sectors, and articles, book summaries, agents tips and much more to excite and challenge our subscribers.

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MEMBER TIPS Every month our four-i newsletter includes a Mastermind Member tip of the month, here are a selection from previous months: rise by 20%. This can be a blended fee including conveyancing, FS as well as the commission charged. Raise your fee from 1.25% to 1.5% and this will offset a 20% reduction in transactions. Improve FS and conveyancing conversions as well and you’re ahead. 8. Y ou should also consider different methods of marketing. Reluctant sellers can be tempted by marketing their property discreetly – indeed, the Josh Phegan line comes to mind – “look, if we had a buyer at £XXX,000 could I mention your place or should I sell them something else?”

Cometh the hour… By Peter Knight

9. E ncouraging offers will be crucial to getting transactions up and this requires intense vendor management – weekly calls to discuss changes in the market is the recipe for greater acceptance when a low offer is made.

After 9/11 an article in the NY Times stated: “Don’t rebuild, reimagine” and whilst comparing BREXIT with that awful act of terrorism some might feel is inappropriate, I cite the idea that this is a moment, perhaps forced on us rather than chosen by many, to “think different” as Steve Jobs would have it – let’s reimagine what our future can be rather than seek to repair and restore what has come and now gone.

10. Finally, there is a silver lining – lettings. Many landlords will defer selling so there should be less churn plus rents are likely to rise too.

“Uncertainty is the only thing to be sure of” said Anthony Muh of Citigroup and so called “Black Swan” events now seem increasingly regular and should be expected. This is a turbulent period of time yes, but many great things have happened during challenging moments – and will again now I believe. Innovation dies during comfortable times of complacency only to be turbocharged when the dark stuff hits the fan. But let’s deal with the here and now first. Many, indeed too many, forecasters are saying the property market will see a short term reduction in transactions and a fall in prices. And of course the more people say this is what’s going to happen then it will become a self-fulfilling prophecy.

So what can you do? 1. Your teams need to get closer than ever to their clients. They need to understand their motivation to move and work with those who feel they have to. The 3 D’s, Death, Divorce and Debt will continue as will the more positive life stages of Birth, Marriage, New Job – it’s really important to identify who the most motivated sellers and buyers are and make sure you’re helping them move and they’re not going to someone else. 2. Whilst not helping immediately, it’s really important to keep in close contact with those less motivated too – the market will return and if you’ve kept them informed and shown real interest in their situation they will return to you when they’re ready.

So having dealt with the actions you can take to influence what else? Well “necessity is the mother of invention” and now is as good a time as any to properly look at your business and to make changes for the longer term benefit. 1. Take a real hard look at your team – are they all A* people? If they’re not at least A grade, then tough times are a good time for a clear out. 2. Are your overheads under control? After people the next biggest expense is marketing – are you getting a proper ROI on every marketing £? Now is the time to cut those projects that appeal to the ego, to cut the strings of those mediums that once delivered but are now well past their sell by date. 3. Now is not the time to order the flash new motor nor to take the once in a lifetime holiday. Look to see if you’ve got excesses anywhere and tighten the belt – but only where appropriate. 4. Continue to invest in your best people and keep your radar tuned for future recruitment. How you deal with your best people now will determine their loyalty when the good times return. 5. Train your people like never before – pass on your experience and provide the reassurance they need. 6. L ook at your incentive and recognition programmes. Can these be overhauled to ensure people are focussed on the right activities for the market conditions? 7. Look at different models. Can functions be combined, can your call centre/central support do more? 8. Is it a time for fixed fee models to be explored? Or perhaps performance related bonuses etc.?

4. Are people really wanting to put their lives on hold? I doubt it very much. Clients need to be thinking about the other than financial consequences of not moving – not getting into the right school area, living in a cramped environment, etc., plus what goes down will come back up – it’s a timing issue. 5. Last week I was offered a 5 year fixed, interest only mortgage at 2.15% – and potentially rates might come down even further. These are once in a lifetime mortgage deals and considerably offset a price reduction.

The temptation for many will be to batten the hatches down and hope the storm will pass. Instead why not tighten the hatches yes, but keep on deck steering the ship on a steady course. “Smooth seas don’t make skilful sailors” – these are the days when the best have the opportunity to prove themselves and to learn even more for future benefit. Response to BREXIT* IMPLEMENT PLAN/ TAKE ACTION

SHOCK

PLAN

RESPONSE

DENIAL

6. If you or your clients are waiting for a market when they can buy cheaply, with prices then rising, with low interest rates and a huge selection to choose from then they’re dreamers. That market has never existed – our job is to highlight the pros and cons of a market and make sure that our clients make an informed decision.

EXPLORE

ANGER SELF BLAME

UNDERSTANDING

OTHERS

INERTIA

LIVING IN THE PAST/ FEAR OF LOSSES

7. I f it’s tougher for the best agents, then spare a thought for the poor ones and cut-price merchants… they’re going to have a really hard time of it. Now is the time to attack your weaker competition – you need a specific plan for each. These plans should include raising fees – if you were budgeting on 10 transactions a month and now anticipate 8 then your fees need to

PERFORMANCE

3. I F prices fall then this is the best time to trade up as the net difference reduces. You must make sure your team are properly trained to discuss this with clients.

ACCEPTANCE

1

FORWARD THINKING/ FUTURE GROWTH

*Based on Kübler-Ross

This is an adaptation of the “Change Curve” by Kübler-Ross. It highlights the stages people will go through following a major incident such as the referendum result. The key is to get through to ‘acceptance’ as soon as possible as only then can you progress.

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You can tap into advice and expertise that you wouldn’t otherwise be able to get hold of.

Raising your profile

Networking, Networking, Networking

Your aim is to become the face of your business – it’s about being visible and getting noticed for the right reasons. To do this you must regularly attend business and social events that will help to get your face known. You can then help to build your reputation as a knowledgeable and reliable. You are also more likely to get more leads and referrals as you will be the one that springs to mind.

By Frank Webster Business Networking is a really valuable way to expand your knowledge, learn from the success of others, tell others about your business and arguably above all else attain new clients. As much as I have tried to embrace social media since its integration into day-to-day business life to gain new business, I will let you into a secret… good old fashioned face to face human contact is where I have gained and still procure virtually all of my ‘new business’ and ‘key contacts’. There’s no substitute for it. For many there is an inbuilt fear factor (all very British) and a hesitation about walking into a room full of strangers and saying ‘hi…I’m Frank Webster (well you would possibly change the name!) ‘I am genuinely interested in doing business with you’. But I can tell you that it really does work. I’m not a great fan of breakfast networking clubs (though I have tried them) and quiz nights but if they work for you then great – no, for me, its the organised business to business ‘summer drinks’ or ‘meet the team’ or plain simple ‘open house’ out-of-office-hours events. I can assure you I could have and perhaps should have been heading home to my family after a hard days work – but its all about making the effort. So, I highly recommend networking as a way to gain new clients and to build a sustainable business. I’ve tried to hone down my ‘top tips’ from getting the best out of networking:

Positive Influence A tip, often not given a second thought, but one that is worth considering, is that the people that you network with and keep in touch with do influence who you are and what you do; so it is important to be surrounding yourself with positive, uplifting people that help you to grow and thrive. Networking is great for this.

Increased confidence By ‘pushing yourself’ to talk to people you don’t know, you will get increased confidence the more you do this. As I said earlier, it will feel strange at first, you will feel nervous and you may well run out of things to talk about. But you will adopt your own style and have your own words and ways of starting the conversations (and indeed ending it if the person you are talking to is boring the pants off you!). Networking is great for helping if you (or a member of your team) slightly lack that extra confidence – it really pushes that person to grow and learn how to make conversations. They will make lasting connections with people they don’t know – amazing! I was certainly not confident when I started networking; in fact it completely petrified me! But as I do it more, the more confident I get and the easier it becomes, and the more benefit I get from it.

Friendship

Generation of referrals for increased business

Lastly, and by no means least, many friendships form as a result of networking because you will mostly be like-minded in that you want to grow your businesses and naturally strong friendships tend to form. Some of my strongest friendships have been started from networking.

This is the most obvious benefit and the reason to participate in networking activities and to join networking groups.

Business growth is very dependant on talking to people and making connections.

The great news is that the referrals that you get through networking are normally high quality and most of the time are pre-qualified. You can then follow up on these leads and turn them into clients. I find you get much higher quality leads from networking than other forms of marketing.

Oxford, where the majority of my working career has thus far been focused, is quite a closed community with its ‘Town & Gown’ divide (less so these days) and it has taken me years to build my connections, but now I look back and can realise the fruits of my labours.

Opportunities A group of like-minded business owners offers an abundance of opportunities! There are always lots that come from networking. This is where the benefits of business networking are huge! Joint ventures (one such example led to 28 new apartments to let, an opportunity to furnish them and considerable PR, aside from the obvious and long-term fee); client leads; partnerships; speaking opportunities;… the list goes on. You do need to make sure you are focusing on the right opportunities and these should align with your business goals.

Connections Some say ‘knowledge is power’! True, but I say “it’s not WHAT you know, but WHO you know”. This is so true in business. If you want a really successful business, then you need to have a great source of relevant connections in your network that you can call on when you need them. You can’t do it alone! Networking provides you with a great source of connections, and really opens the door to talk to highly influential people that you wouldn’t otherwise be able to easily talk to or find. It’s not just about who you are networking with directly either – that person will already have a network you can tap into as well. So ask the right questions to find out if the person you are networking with knows who you want to know.

Advice It also gives you the opportunity to get advice from them on all sorts of things related to your business (or if you are getting on really well) even your personal life and obtaining that important work-life balance.

The Local Expert… By Rachel Ritson A concept that has resonated for me throughout Property Academy sessions is that as high quality, full service Estate Agents, we want to be known as the ‘local expert’, offering relevant advice and support first, before we can expect something in return. At Grisdales we have embraced this idea and one way we have achieved this is by hosting regular advice evenings, for the buyers, sellers, landlords and tenants in our local community. This has been very successful in terms of reinforcing our existing client relationships, as well as bringing a new audience through our door, who get a taster of our business before engaging our services. In terms of lettings, our Investor Evenings have worked particularly well. We offer advice to new and existing landlords regarding the best areas to invest, potential returns and discussing all aspects of the process, along with Buy to Let mortgage advice from local advisors. Building those relationships at the advice evening before a potential landlord has even bought a property, has been very successful for us.

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We have a number of landlords in our portfolio, who went on to buy with other agents and came back to Grisdales to use our lettings service, rather than our competitors’. We’ve now extended this onto our website, which includes an Investment Properties section, filtering out specific properties we believe are great buys, offering good yields. Our recent ‘Dressed for Success’ event was a real winner for sellers. We invited a qualified House Doctor who gave hints and tips on decluttering and preparing your house for sale. We also had representation from a couple of local furnishing businesses and our own staff who discussed the importance of first impressions and preparing your property for the valuer’s photographs and the positive impact this can have. Targeting our pending market appraisals and recent unsold fall-throughs with this event was a great way to get back through the door with relevant conversation, and highlight how proactive we are as an agency. Our next event will focus on first time buyers, many of whom are very daunted by the process and appreciative of advice and support. Our aim is to build those relationships at the start of their propertypurchasing journey and keep them for life, eventually finding them their retirement home! Short term gains from these events have been a significant number of instructions and new relationships from the evenings. Longer term, we’ve been drip-feeding the name of Grisdales as the local experts in our area and building trust and respect within the local community.

six principles of persuasion FOR ESTATE AGENCY

Mastermind Group Member Tip By Jonathan Hudson As a business owner I often feel pulled in lots of different directions trying to separate (not always successfully!) working “in” and “on” the business. The Property Academy allows me to refocus every two months for the next 8 weeks and helps me achieve my “on the business” goals and be held accountable by my peers. Sometimes it’s the smallest detail picked up from a discussion topic or from another peer during a coffee break that can make a big difference to my business. For example, speaker Mark Robb’s staff engagement survey, which helps me get a better understanding of how we owners measure up in a number of factors, or a tip from a peer who has really mastered the use of video to enhance their marketing and stand out from the crowd. The latter is something we are now using successfully to reach an ever-morecrowded marketplace. One thing I have heard time after time, more than anything else within the Mastermind group, is to remember how important your team are. Great team members are hard to find, so looking after the good ones, treating them well and keeping them happy as well as providing a clean and uplifting working environment, will ensure that they stay longer and are more engaged. More importantly, your customers will receive a better level of service and become advocates of your brand.

By Malcolm smith

Lessons Learned from Learning to Jive for the Strictly Agents Giving Charity Ball!

Based on Robert Cialdini’s six principles of persuasion, Malcolm highlights how each principle is relevant to the estate agency industry: Authority – We need to showcase our authority from the

very first touchpoint. Are we coming across as authoritative in our marketing? What statements of authority do we have? Are we stating our experience, areas of expertise, qualifications etc.?

Reciprocity – How can we give something of value to prospective customers for free? Additional value encourages a prospect to reciprocate. Are we offering free step-by-step guides? Free events or coffee mornings? All of these build engagement with an audience, and in social psychology, create a desire in people to repay the favour. Rapport – People buy from people they like. How can they like you before you even meet? The use of language is important here, so using their name with words like ‘you’ and ‘your’ will help build rapport before your first face-to-face. Commitment & Consistency – A key element of

persuasion is to obtain people’s commitment, perhaps by taking a deposit, or even something as simple as completing a form or a tick box. A small element of commitment early on is very powerful. A part of this principle is remaining consistent in your actions and processes, as no one trusts inconsistency.

Scarcity – Scarcity sells and is a powerful way of influencing

By Nicky Stevenson In order to complete a short, 90 second dance performance last Friday, I put in 77,400 seconds of practice, and I learned more than just the Jive routine itself… On 20th May, Peter Knight and I were on a train back to London after a meeting in York when he mentioned the plan for this year’s Agents Giving Ball. It was to be themed Strictly Agents Dancing! What a brilliant idea, I thought. There were three dance competitor spaces left, and before I knew it, I had signed up to compete at the glittering event taking place on 30th September in London, not really knowing what I was letting myself in for! From 18th June through to 30th September, all of the competitor dancers were doing what we could to fit in a lesson with Wright Rhythm in Enfield. There was so much to learn! It seems like a dream now; I am so pleased I did it. It really was a once in a lifetime experience to feel like a Strictly Come Dancing star for a night, and I loved every second of the evening. Hours of work were put into the routine by every single dancer, and it was over in just 90 seconds!

others. Language such as ‘a rare opportunity’, a ‘unique location’ or ‘last 3 remaining’ are all ways of using scarcity.

Which leads me to my first key lesson from this whole Learning to Jive experience – practice really is the crux of it all.

Social Proof – This principle is to offer proof of previous

1) Practice Practice Practice

happy customers. Anything compelling you can use; reviews, testimonials and case studies will provide you and your business with social proof.

For a 90 second performance, I had 5 hours of training with Wright Rhythm courtesy of the Agents Giving Rightmove grant, with an additional 12.5 hours which I arranged myself. I reckon there were about another four hours or so of practice at home in the run up,

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totalling about 21.5 hours of practice and learning altogether!

3) Persona

Everyone competing had to practice as it was new to us all. Over time I got the basics of the routine, but I still needed lots of practice to build on this. For instance, where to look, facial expressions, the positions of my fingers, so many small details that needed to be perfected. It was hard to remember it all! Even once the routine was finalised, we had to practice faster and faster in time with the music… Practice, practice, practice.

I did not envisage wearing what amounted to a small leotard with sequins on it, and shaking my bum in front of hundreds of peers and clients! The dancers said to me that I need to forget ‘professional Nicky’ and become someone else when I am dancing. The routine was danced to Christina Aguilera’s Candyman, and so from then on in the dance studio I was ‘Christina’…

How often in business do we practice some of the things we do every day? Phone conversations, pitching face to face, conducting viewings… All really important elements of our business. The customer changes. The expectations change. The market changes. Are we practicing the different tactics needed to address these changes? The worst thing is to leave a meeting or finish a conversation forgetting a particularly important question or point you wanted to make.

It is not just the dancers who believe in the power of your persona. I was lucky to see Amy Cuddy at an event this year; she has had 36,553,406 views on her top TED Talk video ‘Your body language shapes who you are‘. Amy is one of many social scientists who believes in the power of non-verbal language, not just in influencing others, but influencing self… ‘Fake it until you become it’ is what Amy believes, and that tiny tweaks in our posture and body language can lead to big changes in how we think and feel.

When the market changes, do our valuers, negotiators and managers know how to handle these new challenges, concerns and conversations?

I had a change of mind-set each time I entered the dance studio as my persona became ‘Christina’

Practice really does make perfect. Once the questions and key points have been perfected, why not have a checklist so it can be looked back on reviewed and improved over time? After every dance lesson Charlie (my dance partner) and I recorded where we got to on our phones, and reviewed in our own time so we were well prepared for the next lesson.

Now I know there will be situations in the future where I feel uncomfortable, there will be times where I need to ‘Power Pose’ (as Amy puts it!) to think and feel more powerful, and it is interesting to see that there is some serious research into how our non-verbal language governs how we think and feel. I will now be more mindful of the impression my non-verbal communication is giving not just to others, but myself.

It’s all about practice and we are never too old to learn new ways of doing things for a better outcome.

What impression are you giving yourself with your body language? The whole experience was brilliant, a great success for the charity, and I know everyone that took part had an absolute ball on the night!

2) Persistence I know I was not the only one who had second thoughts after signing up to this challenge! It took a lot more time than I had anticipated and took out most of my Saturdays over the summer. I persisted however, going over the same dance steps over and over…. Every now and again I just needed to remind myself why I was doing it! Which was of course to raise money for the Agents Giving charity, and I didn’t want to let down those who had kindly sponsored me. Personally, I had set out to learn something completely different and I didn’t want to let myself down either! Sometimes in life and business it can be the easy option to give up, but the feeling once you have achieved what you set out to do just erases all the previous negativity around it. I am now so pleased I persisted with learning and performing the Jive, and whilst my straight 8 score was not enough to win, I feel like I achieved by massively stepping outside my comfort zone! It was Viktor Frankl who said:

mastermind Group Member Tip By Peter Lawrence After spending the day with Josh Phegan at his Property Academy Mastermind session on 28th September, a couple of things really hit home for me. First, the importance of re-introducing a daily structure back into the teams, and second, bringing back prospecting sessions in order to motivate them and set a positive working environment to keep them passionate in a tough market. For too long we’ve been worrying about external factors affecting the business and what our competitors are doing, when in fact what we should be concentrating on is the way we engage with our own clients and manage the abundance of data we already have. By sticking to structured prospecting sessions, each with a clear focus, the negotiators have found themselves more confident when farming existing data and maximising every opportunity.

To persist with a goal, challenge or set back, it is so much easier to carry on if you have a Why, and it begs the question of is your Why big enough? Is it communicated enough? Is it enough to get you through the challenges that lie ahead? You can learn more about starting with Why in the excellent TED Talk by Simon Sinek Video on Youtube.

We have structured their days into 45 minute sessions, interspersed with time out and away from their desks to recharge ready to tackle the next viewing, valuation or prospecting session with fresh enthusiasm. The resulting effect is one of our highest ever instruction months to date – so something must be working!

Get a member tip in your inbox every month four-i - FREE weekly and monthly emails aiming to provide Information, Insight, Ideas and Inspiration to those in the Property Industry. propertyacademy.co.uk/four-i-newsletter Page 11


PROPERTY ACADEMY MASTERMIND MEMBERSHIP You don’t have to be lonely when growing your business

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Helps me change the way I look at myself, my time, my business, everything! Paul Broomham – Jones Robinson What a great ideas session to help my issues within my company.. Sarah Mains Sarah Mains Residential The group is fantastically chaired. Attending the meetings allows for shared experience and reminds me to take a step back. Jamie Coronna, TLC London I own my company individually without co-directors so don’t have a boardroom to discuss decisions – well, I didn’t until Property Academy. Matt Nicol – Nicol & Co

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