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Can the HMO market remain strong despite coronavirus and recession?

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What impact is being felt in the property rental market for HMOs (Houses of Multiple Occupancy, also known as house shares) during this period of coronavirus, and with a recession looking imminent?

Does this challenging environment spell the end for HMOs as some predict? I don’t believe that’s the case, in fact, there is good evidence that the opposite is true.

This is why:

Myth 1 – People won’t want house sharing during or after coronavirus

Although this may seem like common sense, it’s not quite that clear-cut.  In our experience, even during the current pandemic, people are continuing to choose to move into HMOs.

Most of our young professional housemates that I rent to could easily afford a one-bedroom flat, but they tell me they’d prefer to live in a house share for these main reasons:

  1. To meet people

Often people are moving to a new city for work and don’t know anyone and therefore prefer to live, at least initially, with other likeminded people rather than live alone. House shares are a great way to meet people and make friends and have a ready-made social life.

  1. For affordability

Often people are saving to buy their own home and love the affordability of HMOs because they can save more each month than they would if they rented on their own.

  1. For convenience

It’s the ease of moving in and having everything set up already; furniture, white goods, all bills included, internet etc., and fast service if anything goes wrong.

  1. For flexibility

We live in a much more mobile society than ever before. Many people move around the country for work, whether it’s to find a better job, or within their existing position. So being tied to a place isn’t very appealing. HMOs make it easy for them to commit for short periods only.


All in all, we’re seeing the demand for HMOs increasing, not decreasing. 

Myth 2 – HMOs demand will crash if we have a recession

If we are heading for the market dip many financial commentators are forecasting, then it’s likely demand for HMOs will grow, as past evidence has shown that residential rental demand increases in recessions. More people prefer to rent rather than buy in recessions.

In 2017 home ownership in England was at a 30 year low according to the English Housing Survey, the lowest since  1935.[1] The private rental sector has doubled in size since 2004 with 4.5 million households renting, including almost 50% of people aged 25-34 renting their homes.

Research by the Royal Institute of Chartered Surveyors (RICS) research showed that following the 2008 recession there was a continued rise in tenant demand.[2] 

So, although many people state, as though it’s a universally accepted fact, that getting into rental in a recession is bad, they are wrong. Recessions see growing demand for rental property and especially affordable rental property, such as HMOs.

Myth 3 – The HMO market has reached its limit

There is a shortfall in affordable housing. A National Housing Federation and Crisis report conducted by Heriot-Watt University reveals that the UK needs to build 340,000 new homes every year until 2031 to meet housing demand. And at least 145,000 of those homes need to be what’s termed ‘affordable’.[3]

In the 30 years between 1959 and 1988 7.4million houses were built in England. In the 30 years from 1989 to 2018 only 3.3million houses were built. That’s a shortfall of 3.1million homes – over 104 thousand homes a year over 30 years.[4]

So, there is strong demand for affordable housing – and house building is not keeping up. Which means HMOs are becoming ever more popular.

In 2018 the UK Government estimated that there are around 4.5 million people in England housed in around 497,000 HMOs in England and Wales.[5]  It’s therefore easy to see how HMOs can contribute towards alleviating the housing shortage. However, many councils have introduced Article 4. This means that a planning application has to be submitted to the relevant council to change a house to an HMO, even if it will only house for 3 or 4 people, which under the national legislation wouldn’t require planning permission.

It is therefore is becoming more difficult for landlords to create a new HMO. So, the number of available HMOs is not growing as fast as it used to, and yet demand is on the increase.

In my experience, the people claiming the HMO market is saturated have sub-standard properties in the wrong areas or don’t have any HMOs at all – just unsubstantiated opinion. To me, it is clear that the HMO market is buoyant not saturated.

So, if you are a landlord with HMOs or are planning to buy one or convert an existing property, what do you need to do to be successful?

From my experience doing the following will enhance your business:

  1. An attractive workspace

Now that people are more likely to be working from home, having a desk, an attractive work area and fast broadband is important. If necessary, add extra lights to ensure the workspace is well lit, and ask an electrician to add a few extra sockets if needed so laptops, phones and other work paraphernalia can be plugged in and kept charged.

  • Plenty of kitchen storage

Ensure there are enough kitchen units to provide suitable storage and include a fridge and freezer. It’s surprising how many landlords don’t supply enough kitchen cupboard space. So, if your kitchen is small, look at clever ways to maximise the storage space – there are loads of ideas from places like the NRLA and IKEA. Thinking about the little things that make life easier can make a huge difference to your tenants.

  •  Extra wardrobe space

While you can’t change the size of a house without major works, you can increase the storage and make it feel more spacious. Simple fixes like having two wardrobes, or adding shelving (for example, above doorways can be a great way to add a bit of extra storage space) can make a big difference. No one wants all their ‘stuff’ on display, so provide somewhere for them to tidy it away.

  • Exceptional service

This is the one that will make your properties stand out. From the first viewing to moving in, be proactive and attentive. Show your tenants you care about giving them a great place to live. Once they have moved in, don’t think that’s your job done! Look after them, make the experience of living in your property one they will remember and cherish.

If you care for your tenants it makes it much more likely that housemates will want to stay together for longer and also refer you to colleagues and friends. All of which will help you develop a profitable HMO business.

Taking these steps will result in you have fewer voids and your HMO business will be more profitable as a result. By caring

ABOUT THE AUTHOR

Stephanie Taylor is Co-Founder of HMO Heaven and Rent 2 Rent Success. She started HMO Heaven along with her sister Nicky and has grown the property management business to contracts of over £2m in just three years. Her goal is to inspire others to believe bigger, be bolder and be gamechangers for good through the power of ethical property businesses. Her focus is on using property to do good in our community and in the world.

https://hmoheaven.co.uk

https://www.instagram.com/stephanietproperty

https://www.linkedin.com/in/missstephanietaylor

https://www.youtube.com/c/HMOHeaven

[1] https://www.theguardian.com/money/2017/mar/02/home-ownership-in-england-at-a-30-year-low-official-figures-show

[2] https://www.savills.com/research_articles/255800/300939-0/how-uk-residential-rents-behave-in-a-downturn

[3] https://www.showhouse.co.uk/news/uk-needs-to-build-340000-new-homes-a-year-until-2031

[4] https://blogs.lse.ac.uk/politicsandpolicy/housing-crisis-what-should-the-next-government-do/

[5] http://researchbriefings.files.parliament.uk/documents/SN00708/SN00708.pdfmarket.

How your small business can setup a Covid-19 communications plan

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As a small business owner you’ll be very conscious of the impact of Covid-19.  Like the ongoing saga of Brexit it is not just affecting your bottom line, but also the day to day running of your business and the amount of work needed to ensure compliance with ever changing regulations and guidelines.

The easiest way to deal with this is to create a package of tools that will help you stay on top of the changes and the ever-increasing regulation and actions you need to take. For example, Thomson Screening has developed a toolkit to help SME managers and business owners work through what’s needed and how to action it. The toolkit provides training and sample documentation. The good news is, none of these activities is new; businesses do them all the time. What’s different is that now businesses need a specific “Covid flavoured” version.

A good communications plan will be the cornerstone of your successful management under Covid-19. 

Let’s start by reviewing the basic elements your small business needs for effective communication. Any communications plan needs to include the following characteristics:

  1. Understanding your audience
  2. Listening actively
  3. Being clear about what you want to say (simply)
  4. Using the appropriate channel(s)
  5. Making sure your communication is timely.

Before we take each of these in turn and work through how they need to be adapted, let’s add one step: know your trusted sources of information!

The best sites to visit are the most important government websites. These are the first places you will need to check regularly. One of the difficulties at the moment is that there is so much conflicting, confusing or out of date information circulating. Go straight to the horse’s mouth, check the government websites first.

The communication steps and how each needs to be adapted for Covid-19

  1. Understanding the audience your small business needs to address

Under the current circumstances your audience will be much more sensitive to different types of communication, and this will not necessarily be along the lines you may expect.

Essentially, we are talking about people’s ability to handle uncertainty and manage risk and this has nothing to do with their job, their level of education or even their age.  Whether they are staff members, customers or suppliers etc. some people will be very risk averse, some will rely on science or authority, and some will be just the opposite.

Your communications plan needs to be mindful of this and cater to the different needs of your audience. It may need you to say the same thing from three different perspectives to cater to three different needs. The key to getting this right is understanding your audience and you can do this by listening actively. 

  1. Listen actively to the groups that make up your audience

You need to listen and hear what your audience or different groups in the audience (whether internal or external to the business) are most concerned about. For example, is it rules around social distancing? or mask wearing?

You also need to show the audience that you are there, that you are listening, that the measures you are putting in place are to protect them and meet their needs. The actions you take need to be about them – and they need to understand that in your communications. Just acting, but not communicating, can lead to misunderstandings and a break-down in trust.

  1. Clarify what you want to say

You don’t want people to come to work if they have symptoms – so be clear about this and what they should do in this situation. For example, if in doubt, stay home and phone or contact your manager. You also need to ensure that everyone has all the contact details they will need if they are at home and can’t come to the office.

If you need customers or other visitors to wear a mask at all times, or if they only need to wear them in certain areas – be clear about this. If areas within your place of business are off limits to external visitors, ensure they are obviously labelled.

Above all, your communications need to be clear, simple and, if necessary, repetitive. Just look at how the NHS is using simple words and lists of no more than three or four items. Avoid using abbreviations or acronyms. Don’t assume just because you’ve said it once, everyone has heard it or taken it on-board.

Finally, it really helps to give some specific examples and little personal touches: show that you have considered the needs of disabled staff and customers, or perhaps those who rely on lipreading.

  1. Decide on the best communications channels

Even small businesses have many communications channels including your website, Twitter WhatsApp, newsletters, window signage etc. Choose the right platforms for the audience and for the message. Make use of as many channels as you can and be consistent with your messages. Normally you’d be using a slightly different approach in each channel, but in your Covid-19 related communications, it is really important that there is no misunderstanding.

Start by creating a list of all possible “channels”: website, newsletter, sign on the door, customer service team, training materials, Twitter feed, LinkedIn post, everything you can think of.

Use templates as much as possible as this will save time and keep the communications consistent. Ensure anyone involved in any form of comms (from PR to social media, from web editor, to marketing flyers, from poster designs to advertising) know what your Covid-19 messaging is and when and how to include it.

  1. Ensure timely communication

This is where Covid-19 related communications get really tricky: things change very fast (or they may stay the same), which makes it very difficult to plan. You want to make sure you have not left out of date information on any of your communications, and you want to be sure you are always in line with the most recent government or Public Health guidelines. Yet, you cannot spend every hour, every day, checking and updating everything.

Fortunately, there are a couple of tricks and tips you can use. These are not new, they should be familiar to you, and in Covid-19 related messaging they are essential:

  • In electronic communications (websites, newsletters, chats, etc.) use links directly to the relevant government websites. (see list above)
  • Used shared file systems (e.g. Google Drive, One Drive or Dropbox) for templates and drafts
  • Have a log of where these templates are used, to make sure you don’t miss one of them
  • It is an extra few minutes to get everything in one place when you start, but it will pay dividends many times over when you suddenly need to change something.

Once you’ve set everything up, check weekly to confirm that either everything Covid-19 related is still correct and relevant or there are changes that need to be communicated right away. Something as simple as a diary reminder is good for busy business owners.  That way you’ll ensure are ready to communicate any Covid-19 news and changes.

ABOUT THE AUTHOR

Marta Kalas is co-founder of Thomson Screening, developers of the Thomson Covid-19 Test Manager software platform that enables testing providers to scale irrespective of where, how and what test is carried out. Functions include automated reporting at local and national level for bodies including Public Health, Community Health and Employers with data reporting into other systems, as required.

A separate module using questionnaire and risk assessment methodology enables local residents to self-report Covid-19 symptoms with automated reporting to local (or national) Public Health and the ability to automatically push out messaging specific to the individual with symptoms.

Thomson Covid-19 Test Manager is designed to adapt rapidly to fast changing requirements and is fully scalable. The Innovate UK grant enables Thomson Screening to utilise investments made in the core functionality of the company’s products used in the NHS, especially its SchoolScreener Imms product, to rapidly repurpose and deploy the software.

Web: https://workscreener.com/covid-19-test-manager/

Twitter: https://twitter.com/SchoolScreener/

Facebook: https://www.facebook.com/Schoolscreener/ 

LinkedIn: https://www.linkedin.com/company/thomsonscreening/

Sources:

How can you make sure your business is doing its bit for the planet?

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Recently, I went to the premiere of David Attenborough’s new film ‘A Life on our Planet’.

Described as his ‘witness statement’, the film contained a plethora of compelling statistics that defined the devastating problems we face if we do not stop destroying our planet. The film shows the numbers for the rapid increase in global population, the increase in carbon in the atmosphere, and the accompanying sharp decrease in unfarmed natural land.

It is a stark message. By losing the biodiversity of our land, we are fast accelerating towards extinction as our planet struggles with the excess demands placed upon it. The earth has finite commodities, but we are acting like they are limitless.

The film does however end with a ray of hope. Attenborough lays out the steps we need to take to quickly redress the balance and allow the planet to recover.

These steps are simpler than you might think.

  1. Population control – end poverty and increase access to education for all people, which will naturally lead to population control. This, of course, requires global commitment.
  1. Rewild the rainforests to restore biodiversity. Rewild more farmland.
  1. Stop eating meat. For every one carnivore in nature there are at least 100 prey animals, so for 11 billion humans to be carnivores is completely unsustainable. It’s an absolute no brainer.
  1. Abandon fossil fuel in favour of renewable energy. Everyone knows this, but with pension funds and big business still investing in fossil fuels there is a substantial way to go.
  1. Land use. Using less land in more intelligent ways to produce more food, such as vertical and urban farming.
  1. Stop Waste. Period.

So how can businesses play their part?

You might think that most of this list is beyond the sphere of influence of an individual or an individual business, with international action and financial incentives needed for this to happen on a global scale.

Whilst it’s true that international action is needed, we can all instigate actions that make a difference. Some of these involve supporting non-profits in a financial sense, but many of the actions we can take are changes within our own supply chains which are not disruptive or costly. They simply involve making more ethical choices in our purchasing decisions.

A recent Futerra survey showed that 88% of consumers want brands to help them be more sustainable, and many people utilise their purchasing power as a way to make their mark, so it’s also a shrewd business decision to make positive changes within our own business.

  • Education
    Consider donating a small part of your income. Attenborough states that to achieve the eradication of poverty, education, particularly of women, plays a huge part. Camfed, a charity directly impacting the education of women is one such example of an organisation working towards this aim.
  • Rewilding
    Work with the many new ethical suppliers who are themselves making a difference. For example, we work with a tea supplier called Reforest Tea. For one 500g bag of breakfast tea, costing £12, they are able to plant 6-8 trees. Perform your own sustainability audit (there are also individuals and organisations that can conduct this for you, or you could simply do it yourself). For example, it’s now widely known that palm oil is one of the main reasons that the rainforest has been destroyed, so eradicating it in your home, business and supply chain is one way of making an impact.
  • More Plant-based meals
    Obviously as a vegan brand we are hoping that the whole world will eventually refrain from eating meat. But even if you are not vegan, the fact that 65% of all the mammals on this planet are farm animals, their devastating carbon impact and land use cannot be overstated.

It’s simply not sustainable for the 11 billion animals on the planet to eat other animals. But what does this mean for a business or for one that serves meat? And what if your offering is purely meat based, like a steakhouse? Fortunately / unfortunately it means you need to pivot your business model. Although it might feel like your offering is well supported now, it will become increasingly regarded as unethical in the future.

If you have a staff canteen, look to increase the plant-based offerings. Educate your staff about eating less meat (whether that’s avoiding it for a few days a week, or putting less on the plate). If you host events that involve food (whether canapes or a full sit-down), ask your caterers to provide a good choice of plant-based options, or better still (like many companies and charitable organisations) choose to make your events 100% plant-based.

I am not lecturing here, but don’t count on people wanting to continue eating meat in the future like they do now. So now is the time to explore plant-based options that suit your brand, and develop new products that have a lesser carbon impact. Stem & Glory is working on a pilot project with a new business that does carbon labelling for menu items. It may take a while for this to take on, but we predict this will be in huge demand in the future by consumers.

  • Using Renewable Energy
    In pursuit of renewable energy, businesses can make a huge impact by simply moving to renewable only energy sources. There are a number of these now, including the most established Ecotricity and Green Energy. But we can go one step further. Who are your investors? What are their green credentials? Do they invest in fossil fuels? Who are your partners? Who are your landlords? Scrutinise everything. Ask the questions. Take every opportunity you can to bring attention to this.
  • Vertical Farming
    I visited Amsterdam in February, in those heady days before Covid-19. There are some super exciting projects there with vertical and urban farms. They are a big exporter of vegetables because of this. They get a greater output from a much smaller footprint in this way. It’s now also breaking into the hospitality sector. I visited a restaurant called Juniper & Kin which is on the top floor of a tall hotel building. They have a green house on their roof and grow a high percentage of their produce there. There are a number of similar operators in the UK and it’s a hugely exciting space to be involved with. We are in discussion with our landlords about making this happen at our existing and all future sites.
  • Waste. Probably the biggest issue of all.

Food Waste
More than one third of all food produced is wasted. And with regard to fruit and vegetables, it is almost half. In the developing world this waste is largely down to inefficient processing, poor storage, and insufficient infrastructure. In medium and high-income countries (that’s us) whilst supply chains can still be an issue, the behaviour of consumers plays a much greater part. We are simply buying it and not eating it. Much of this food waste could be avoided if it were managed better. The hard fact is, if we managed to reduce the amount of food waste down by just 25%, that would be enough food to feed the 870 million who currently do not have enough to eat.

Packaging Waste
There is a huge amount of misinformation out there on this subject, especially with regards to single use. I watched a short film recently, called Our Planet, Our Business and one of the experts said, ‘there is no such thing as waste, it’s just a commodity in the wrong place at the wrong time’. That really struck me. Packaging is a complicated subject that we’ve been immersed in researching for some time, and here is what we have learned:

  • The only truly sustainable, circular solution for packaging is to use products that are made from 100% recycled post-consumer waste, which are then endlessly recycled. So, we are no longer using single use anything.
  • Compostable is not the answer to the issue of single use, as compostable containers are widely made from virgin materials, which increase the carbon footprint of the product, and do nothing to solve the issue of mass disposability.
  • When the world is truly plastic free, then it may be that recycled packaging which is also compostable could play a part. But, whilst we have such huge amounts of post-consumer plastic waste, the most responsible thing we can do is recycle it. If demand for 100% recycled plastic were greater, demand would also increase for manufacturers to buy post-consumer waste plastic. And so it goes on.
  • Of course, responsible use of recycled plastic products requires education, and we need to invest energy into just that. It’s a big step for us all to make in our heads because plastic has been vilified for so long, but research shows it’s moving away from single use anything that has the greatest carbon impact. The leap we all need to make is to start viewing plastic (and everything else on this planet) as a valuable commodity.

Other Waste
At Stem & Glory, we are currently fitting out a new site in Cambridge. The driver behind our decor is reuse and recycle as far as possible. It’s been great to see that there are so many new products on the market that are composed of recycled post-consumer waste. We predict that this will explode massively in the coming months and years. From table-tops to worktops, paint, flooring, concrete, lights, innovation is everywhere. And it looks completely fab! As part of this process we have also been able to get our entire team on board – from designers to contractors, all are now also committed to the reuse and recycle way of living.

And this is probably the best way we can win hearts and minds to tackling climate change. Never underestimate the contribution that an individual or individual business can play. By changing ourselves we generate spirals of positive influence – the R number of sustainability! The more you make changes and tell others, the more people you will influence for good.

ABOUT THE AUTHOR

Louise Palmer-Masterton is founder of multiple award-winning restaurants Stem & Glory; hip and trendy but accessible plant-based restaurants, serving delicious gourmet vegan food from locally sourced ingredients, 100% made on site. Stem & Glory also offers click-and-collect and local delivery in London and Cambridge.  www.stemandglory.uk 

https://www.seedrs.com/stemandglory

Social Media:

Web: www.stemandglory.uk 

Twitter: @stemandglory
Facebook: https://www.facebook.com/stemandglory/
Instagram: @stemandglory

Linked in: /louisepalmer-masterton

Seedrs: https://www.seedrs.com/stemglory

Notes:

David Attenborough: A Life On Our Planet – is available on Netflix

Our Planet, Our Business: https://www.youtube.com/watch?v=JdWQJq2OkJs&feature=youtu.be

Love your job? Don’t let back pain hold you back

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If you love your job, whatever that job requires of you, it’s important to protect your back. Whether sitting for long periods, lifting objects or moving equipment, our body is designed to be able to undertake these activities. However, a combination of repetition, poor technique or inadequate physical fitness can mean we suffer with injuries that cause pain, ranging from a mild backache to serious pain.

Having knowledge and understanding of how our body works empowers us to make the correct decisions on how best to look after ourselves, whether this is what we choose to eat, how much we exercise or the daily stretch routine that we participate in.

Discs and donuts

Our spine consists of a stack of bones called vertebra and sandwiched between each bone is a disc. These discs are the shock absorbers for our spines and are incredibly strong. Imagine a jam doughnut. The jam in the middle is the nucleus pulposus, the dough around the outside is the annulus pulposus. The sugary coating around the outside is the annular ligament. Together these structures produce a disc that can be squashed in all directions to allow movement of the spine. Holding all of this together are ligaments and a complex array of muscles, which support the central column on bones and discs.

Issues that affect the spine

Pain is most commonly caused by the overuse of muscles. This can cause a deep, dull ache which gradually builds up during the day. This is due to muscle fatigue and is an indicator that the spine and muscles around it can no longer maintain the work you are expecting them to do.

Sudden, cramp-like pain, on the other hand, can be caused due to muscle spasms. This is where the muscles of the back feel the need to spasm as tightly as possible to stop you doing something, in an effort to reduce possible injury.

More severe back pain can be caused by damage to the discs of the spine. Image the jam doughnut between two plates. As you squish the plates together you squish the disc. If, however, you place more pressure on one side of the disc, the central jam can push out towards the sugary coating. In cases of continued pressure this sugary coating can become damaged and the jam and dough can produce a bulge. In the worst cases the dough, or annulus pulposus, is also damaged and the jam, nucleus pulposus, can come outside of the doughnut, resulting in a herniation.

Managing pain

When neck or back pain starts it becomes difficult to move. Our body becomes stiff and immobile either due to muscles spasms or the pain that restricts our movement. The first stage is to try and reduce the acute nature of the pain. This maybe helped with hot or cold packs, or pain medication as prescribed or through a GP. Once pain has started to reduce, some movement will return as the muscles start to relax. Manual therapy can then be used to try to further reduce the muscle spasm, mobilise stiff joints and improve the movement of the spine.

Exercises are, of course, an important part of maintaining health for the spine. They help not only to prevent injury but also for the treatment of injuries once they have started. Tai Chi, Yoga and Pilates are all excellent forms of exercise to maintain the strength of muscles in the spine, your core control. They can also improve and / or maintain flexibility of the ligaments, muscles and joints of the spine and neck.

Posture and manual handling techniques are incredibly important for preventing injury. Lifting incorrectly can add a large amount of pressure on the neck and spine. If this is added to poor spinal health due to poor posture and declining physical fitness, the chances of injury are increased.

Treatment

For disc problems to resolve, the body needs to be given the right environment to help itself. This means that the spine needs to be moving to the best of its ability, with enough strength and control to undertake the activities that are expected of it. For example, a desk-based worker would not need the same strength and control as someone working in a warehouse or garden centre where lifting and shifting equipment is a regular activity. Osteopaths, Chiropractors and Physiotherapists are all skilled and able to provide the correct treatment and advice to try to help with back and neck pain.

In cases where the body is unable to heal itself and manual therapy treatment has been unsuccessful, clinics can recommend IDD Therapy. This form of treatment is a specialised form of spinal decompression, controlled through computers to provide the exact amount of decompression to a targeted area for a sustained period of time. The targeted area means that the specific disc that is causing the issue can be targeted rather than a broad traction throughout the whole spine. The gentle nature of the treatment means that the muscle spasms can be eased to improve spinal mobility and, therefore, proves a far more suitable environment for the spine to heal.

As the pain subsides, manual therapy and gentle exercise can, of course, be re-introduced to help get patients back to full health again.

Preserving your body’s strength and mobility is the key to enjoying a long, enjoyable and – importantly – pain free career. As over eighty per cent of people will experience back or neck pain at some stage in their lives, it is reassuring to know that in most cases in can be helped quickly with conservative management and for other cases there’s IDD therapy, so that, if you are one of those people, you can rest assured you’ll be back at work doing what you love quicker than you think.

ABOUT THE AUTHOR

Michelle McWilliam is a highly experienced Osteopath and Acupuncturist and co-owns The Totalcare Clinic in Botley, just outside of Southampton. The clinic provides Osteopathy for adults and children, Acupuncture, Sports Massage, IDD Therapy, and boasts 48 classes per week of Pilates, Yoga and Tai Chi.

‘Intervertebral Differential Dynamics’ orIDD Therapy is the fastest growing non-surgical spinal treatment for intervertebral discs with over 1,000 clinics worldwide and 34 clinics across the UK. Safe, gentle and non-invasive, IDD Therapy helps patients who need something more for their pain when manual therapy alone is insufficient to achieve lasting pain relief. http://iddtherapy.co.uk/

Facebook: IDD Therapy Europe

Twitter: https://twitter.com/IDDTherapyDisc

What alternatives does your business have to using a solicitor?

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Legal problems in business can be worrying, especially if you do not have the expertise in-house to deal with it.

Of course, for smaller business, the cost of using a solicitor can be financially prohibitive and is not within the reach of most budgets. Solicitors charge fees of anywhere between £150 per hour to £600 + per hour. They can even charge you £500 for writing a letter on your behalf.

You may be surprised to hear that a large percentage of legal matters can be dealt with by non-solicitors. These days there are alternatives to consider such as employing the services of a mediator, a McKenzie friend or a paralegal, so don’t despair.

Recently, the Independent Review of Legal Services Regulation by Professor Stephen Mayson, stated that a survey of statutorily regulated lawyers (solicitors, barristers and chartered legal executives) confirmed that only 20% of the work they do falls within the remit of reserved legal activities (i.e. meaning that they are reserved for solicitors, barristers and legal executives only to perform). Translated to layman’s terms, this means that 80% of all other legal work can be carried out by non-solicitors.

Of course it does depend on the legal issue, but in many cases, finding a mediator will assist you and your opponent to resolve the issues you may have, and is far less costly than instructing a solicitor. Mediators are trained to help and guide the parties to understand and focus on the main issues in order to find a satisfactory solution acceptable to both parties.

Even if your legal issue means taking someone to court, or defending a claim against you, you can do this yourself if it is a relatively small civil claim. To assist you, you can use the services of either a paralegal practitioner or McKenzie friend.

A McKenzie friend is usually a person who will accompany you to court if you are attending as a litigant in person (LIP). Because you are not represented by a solicitor or barrister a McKenzie friend can give advice and support but, more often than not, will have no legal qualifications but will have experience of court matters.  They can be either family members or friends accompanying you to court for moral support, or can be volunteers from charitable organisations. Quite often McKenzie friends do not charge fees but it is currently a growing trend for them to charge a nominal amount to assist you in this way.

Apart from offering you moral support, McKenzie friends can also take notes during any court proceedings, and give advice and help on completing court forms and the court process.

A paralegal practitioner is distinguished from a McKenzie friend since they usually will have a legal or paralegal qualification and may have a Licence to Practise. Therefore, there is often a fee to pay but not as excessive as that of a solicitor. On the whole the fees that paralegals charge are anywhere between £40 – £80 per hour, or perhaps a fixed fee for carrying out a specific task or job.

The kind of cases that you can call upon a paralegal to assist you with are varied and cover a broad spectrum. In fact, a paralegal practitioner can assist with most cases that a solicitor can as long as they do not perform any ‘Reserved Activities’. These activities are solely for solicitors and in some cases, barristers to perform, and include having an automatic ‘right of audience’. This means that solicitors and barristers have an automatic right to represent clients in court and speak on their behalf. This right is not granted to paralegals or McKenzie friends.  However, in some instances, the Judge in a particular court case, can grant such a right, at his/her discretion, provided s/he is satisfied in respect of the competency of the paralegal/McKenzie friend and believe it in the best interests of justice to do so.

Paralegals are not able to act on your behalf to sell or purchase property or land unless they are Licensed through the CLC (Council for Licensed Conveyancers), nor can they offer immigration advice unless they are registered with the OISC (Office of the Immigration Services Commissioner).

Paralegals and McKenzie friends are not regulated by statute in the same way as solicitors and barristers are. This means that anyone can refer to themselves as such. However, there are organisations that are voluntary regulators such as NALP (National Association of Licensed Paralegals) or The Society of Professional McKenzie Friends, that have strict codes of conduct that members must follow.  If choosing to use a paralegal or McKenzie friend it is always advisable to ensure they are members of such a body.

For further information on alternatives to using a solicitor please go to the Legal Choices website: https://www.legalchoices.org.uk/

ABOUT THE AUTHOR

Amanda Hamilton is Chief Executive of the National Association of Licensed Paralegals (NALP), a non-profit Membership Body and the only Paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres, accredited recognised professional paralegal qualifications are offered for a career as a paralegal professional. 

See: http://www.nationalparalegals.co.uk

Twitter: @NALP_UK

Facebook: https://www.facebook.com/NationalAssocationsofLicensedParalegals/

LinkedIn – https://www.linkedin.com/in/amanda-hamilton-llb-hons-840a6a16/

The many shades of grey – taking off the blindfold when it comes to FCA regulation

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Why incubators, accelerators and networks matching investors and start-ups need to be regulated

Financial services regulation is a hugely complicated area. The handbook written to help distil the regulation itself makes the five-part Fifty Shades series look like a novella, with the glossary alone taking up 583 pages. 

This complexity has created grey areas and led to wide-spread issues in the early-stage investment space with many unauthorised organisations conducting regulated activities, either unaware they are doing so or under the belief that they are somehow exempt.

Here we expose the truth regarding the most common grey areas surrounding financial services regulation in early stage investing.

Area #1: I am not regulated, so I don’t need to worry about it.

This is a bit like saying, ‘I don’t have a license to drive, so the highway code doesn’t apply to me,’ and yet it is a real misconception in the market.

If you are an unregulated network or introducer you can be reported to the FCA.  If you are found to be undertaking regulatory activity, e.g. “arranging”  deals in investments, without the required FCA permissions, it is a criminal offence and the individuals responsible for operating the unregulated network won’t just get a gentle slap on the wrist, they might find themselves in handcuffs.  If that isn’t bad enough, any transactions could also be unwound, and you could have to pay damages.

Area #2: I am not giving advice to investors, so I don’t’ need to be regulated.

This is a common interpretation we hear from angel networks and other organisations who help match start-ups and investors. The grey area here is around the word ‘advice’ and how you’re actually interacting with both investors and start-up companies.

Let’s have a look at the term ‘advising’ and what it means from a regulatory perspective.  When we’re talking about equity investment, ‘advising’ falls into two categories:

  • Advising companies about raising investment i.e. providing corporate finance advice to start-ups with regards to matters such as valuation and deal structuring and
    • Advising investors about investing i.e. providing recommendations in respect of making investments.

The definition of investment advice is quite broad, so if you’re running an investment network and you’re not saying to investors, ‘put your money in this deal’ you’re in the clear, right?

Wrong.

While you may not be carrying on the regulated activity of providing investment advice to investors, you may be carrying on a different regulated activity: arranging deals in investments.

Arranging is defined by the FCA as bringing about deals in investments, making arrangements, with a view to transactions in investments, or agreeing to carry on either of those regulated activities.

Here you can see an organisation that brings together investors and start-ups for the purposes of showcasing or discussing investment opportunities that will lead to transaction, is very likely carrying on the regulated activity of ‘arranging’. 

However, there are certain exclusions and exemptions which could apply, so you should obtain advice to confirm your exact regulatory position.

Area #3: Anyone can run a pitching event to help start-ups

Yes, anyone can arrange a pitching event. But. But. But. . .

There are several caveats here that you need to be aware of before you start sending out invites.

You must ensure that the investors you invite are at the right kind of investors. The right kind of investors are the kind with money, right?

Not exactly, because, any marketing which is capable of having an effect in the UK, which involves an invitation or inducement to engage in investment activity, would fall within the scope of the UK financial promotion regime.  Similar to regulated activities, breach of financial promotion is a criminal offence, transactions could be unwound, and you could have to pay damages.

To avoid getting yourself in a bind, ensure any financial promotions are:

(a) issued by an FCA-authorised person;

(b) approved by an FCA-authorised person; or

(c) fall within an exemption from the financial promotion regime.

Area #4: I am only targeting high net worth individuals, so I don’t need to be regulated

There are exemptions that apply to certain classifications of investors and rules around how you can market and interact with each.

One such a class of investors is called ‘Certified High Net Worth Individuals (HNWI),’ who have signed a HNWI statement within the last 12 months.  If you request a copy of the HNWI certificate for each person, then you know that your audience is HNWIs and falls within this exemption.  However, you still have to be extremely cautious not to move beyond making a financial promotion, into the regulated activity of arranging either before or after your event. The exemptions that apply to the financial promotion regime do not generally apply to regulated arranging.

It is not uncommon for networks, post marketing, to help seal the deal by facilitating communication between the start-up and the investor. This is exactly the kind of behaviour that is likely to amount to the regulated activity of arranging and arouse the interest of the FCA.

Area #5: I can promote my equity investment opportunity on social media  

Posting your investment opportunity on your website, via your social media or targeting investors via LinkedIn is likely to fall within the financial promotion regime and will leave you open to scrutiny by the FCA.  Breach of the financial promotion regime is a criminal offence and transactions could be unwound and you could have to pay damages. 

As stated above, under Section 21 of Financial Services and Markets Act 2000 (“FSMA” – a tortuous but important bit of legislation protecting investors), any communication which invites someone to buy shares in their company is a financial promotion and, unless you are confident the communication is exempt or has been approved by a FCA registered firm, it is a criminal offence to make such a communication.

If that hasn’t turned you off, section 755 of the Companies Act 2006 prohibits private companies offering shares to the public, unless various conditions are met, such as making the offer to fewer than 150 people or to qualified professional investors.

To be sure you are not breaching any of these regulations, you may wish to consider two things:

 1. In relation to the financial promotion regime, ensuring any financial promotions fall within an exemption or have been signed off by a FCA authorised firm and

 2. In relation to arranging, ensuring that all investment transactions are arranged through an investment platform which is managed by an FCA authorised firm with permission for arranging, which will also ensure investors go through a proper investor classification and risk awareness process.

These are just a handful of the most common misconceptions that we see. If you feel like you’re groping in the dark when it comes to regulation, there are firms out there that can help. In addition to consulting with a specialist lawyer, regulated firms like Envestors are able to offer Introducer and Appointed Representative status —giving you more than ample cover without having to swallow the cost of becoming regulated in your own right.

It is time for networks working in the exciting world of matching start-ups with investors to take off their blindfolds and submit to regulatory requirements. When this happens and all the players have confidence that investors are fully aware of risks, and importantly that opportunities are ‘clear, fair and not misleading,’ it will mean more start-ups will benefit. This will be excellent to see in the current, challenging environment.

ABOUT THE AUTHOR

Envestors Pic shows: Oliver Woolley, CEO and Co-Founder Envestors Photo by Tony Larkin

Oliver Woolley, CEO of Envestors. Envestors’ digital investment platform brings together entrepreneurs and investors across geographies, communities and sectors – creating the single marketplace for early stage investment in the UK.

Envestors partners with accelerators, incubators and angel networks to provide a white-label platform empowering them to promote deals, engage investors and connect to other networks.

Founded in 2004, Envestors has helped more than 200 high growth businesses raise more than £100m through our own private investment club.

Envestors is authorised and regulated by the Financial Conduct Authority.

Web: https://www.envestors.co.uk/

LinkedIn: https://www.linkedin.com/company/envestors-llp/

Twitter: @EnvestorsLondon

Why the era of passive investing is waning

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When discussing Fintech with bankers in the City of London it is not unusual to hear them say: “Normal folk should not be trading.” This fits a narrative that has become widely accepted: ‘normal’ people are simply not up to making money by investing. They should play safe by putting their funds into a so-called robo-advisor like Wealthify or Nutmeg which will put their hard-earned cash into index-tracking passive investment funds.

This type of investing is often referred to as ‘black box’ investing is a very bad idea. Black box investing involves a computer using complicated formulas to achieve returns in the desired way. However, because an investor may not understand the model (and may not be able to do so), it can lead to unforeseen problems that the investor is unable to react to or even mitigate against. This investment approach also goes against the Fintech trends that are beginning to unfold. It looks backwards to a time when investing was for the elite. However, this is no longer the case.

How can the everyday, non-professional investor get the most out of the markets? Here are some thoughts:

  1. Robo-advisors

Robo-advisors are a class of financial advisers. They provide financial advice or investment management online with moderate to minimal intervention from a human being. They provide digital financial advice based on mathematical rules or algorithms only. Robo-advisors, despite their automated nature, still charge a management fee, often as much as 1% of your funds. That’s £500 on a £50,000 portfolio, per year.

But that’s not all. The ‘passive-investing is great’ mantra has been sung repeatedly over the past 10 years. And it’s worked – as all the markets have been going up. Everyone’s a genius in a bull market. But this won’t go on forever. Remember Michael Burry? The ultra-nerd Hedge Fund manager in “The Big Short” had predicted the Subprime Mortgage crisis that led to the financial crisis of 2008/09. He is now warning that Index Funds are the next massive bubble.

Action step:

With just a little bit of research, anyone can create their own long-term, low-cost multi-asset fund held via a platform, with total costs of below 0.5%. Explore platforms like eToro or IG Index to either buy an index fund that holds a range of stocks directly or create your own.

In order to spread your risk, pick a range of stocks from different industries and decide what percentage of your portfolio you want to allocate. If that percentage becomes higher or lower over time, you can buy or sell respectively to balance it out. Do it once per month and save on the fees of robo-advisors.

  • The trend-of-the-day

When the dotcom Bubble of 2000 collapsed, it took the market over 17 years to recover. Who had been left holding worthless stocks? Mostly the retail investors who had been lured into buying the ‘trend-of-the-day’. The trend-of-the-day today is passive investing into index funds.

For too long, normal people have been pushed into seemingly ‘risk-free’ investments that end up destroying their financial wealth in a crisis but which lack the potential for huge gains.

Action step:

A modern-day investor does not have to run complex strategies to beat the ‘trend of the day’. I personally keep most of my funds in safe, liquid assets but I have about 20% of my portfolio invested in high-risk high-reward assets, like certain tech stocks or cryptocurrencies. This is called a ‘Barbell strategy’ and has become better known in the mainstream thanks to famous author, professor and trader Nassib Taleb, author of ‘Black Swan’.

Most of us panic if our funds are sitting in cash on a 0.1% rate savings account. But having the majority of your money in cash, gold or bonds, means that you are well protected from risk. And you can buy when everyone else is panic-selling during a market crash because you have cash available. The famous mantra “buy when there is blood on the streets” has allowed many famous investors, such as Warren Buffet, to build a top-class stock portfolio at a great price.

  • Advanced trading tools

In normal times robo-advisors give you average annual returns. But when all hell breaks loose, as it inevitably will, sooner or later, I would not want to be sitting in an index fund when everybody is trying exit through the door simultaneously.

Those who went ‘through the door’ before others won’t be the ones suffering. The smart Hedge Fund manager who long ago secured his investment position by buying insurance or setting up stop losses that will sell down his holdings in the event of a crash is able to react to market changes quickly. John Paulson, the famous investor, posted profits of over $2bn during the 2008 Financial Crisis.

Action step:

Small time amateur investors tend to avoid anything more complex than simply buying and selling. By doing so they miss out on major market opportunities. A simple ‘Put’ option can act as an insurance that allows the trader to sell a certain financial asset at a predetermined price: perfect when you want to protect yourself against a market crash.

Moreover, automated trading rules allow hobby investors to trade like professionals with algorithms. Platforms like Coinrule give normal people the tools to build strategies that protect against losses and help to catch market opportunities. By designing and then automating the strategy you don’t need to sit in front of the computer all day or constantly watch the markets. Innovation is starting to provide access to the markets for more and more people. And the professionals are hating it.

  •  Do-It-Yourself Traders need to keep learning

Trading and investing are tough to do. There is no doubt about that. For someone with less time and experience it certainly makes sense to act conservatively in the markets. However, that does not mean that regular people are too dumb to learn to make their own investment decisions. Today, professional traders can make money whether markets are up or down. Non-professionals can do the same.

There is no good reason why today’s markets must remain esoteric to those outside the industry. Behind scary, technical language are actually some simple concepts. Don’t listen to the bankers-in-suits claiming that ‘this is not for regular people’ but only for the ‘Masters of the Universe’.

Most of the problems holding normal people back are related to access. Access to the right trading instruments, the right knowledge and the necessary experience. If you just put your money into a passive fund, you never learn and are forever victim to whatever crisis may hit the market.

Action step:

Read and study the markets. Books like “The Intelligent Investor” by Benjamin Graham, “What I Learned Losing a Million Dollars” by Paul and Moynihan and many others provide great introductions to the topic. Tools like TradingView make chart reading accessible for everyone. Free resources and communities allow normal people to get up to speed and learn quicker than ever. Other new entrants into this sphere are beginning to offer products that allow non-professionals to trade on easy-to-use platforms with a wide range of assets available. The days when you needed to navigate complex, confusing interfaces are truly over.

  • Make up your own mind

Platforms like Robinhood, Revolut or Freetrade have been making an impact in the retail online investing market by offering a smooth user experience, modern interfaces and great accessibility. But when it comes to financial inclusion they don’t go far enough. Famously, Robinhood sells on its user’s trading orders to be executed by high-frequency trading firms like Virtu or Citadel Securities. This puts these firms in a position to place their own trades in such a way that regular people will often end up overpaying. This is a win for the trading firms, but most definitely a loss for you.

On the other hand, despite years of talking about the ‘end’ of cryptocurrencies and the ‘scams’ in the market, everyday people are trading these products more than ever. The need for a market that, at least has the potential for full transparency, fast learning and large opportunities, is there. And it is being made a reality by new tech.

Action step:

Spend time doing your own research and learn to make your own judgements. Just because a new platform is hyped or a market is attacked in mainstream perception does not make it more or less right. Use the platforms and tools that offer full transparency, have the ethics in place that you value and are accessible for normal people.

And finally

Of course, trading and investing involves risk.  Rather than ignoring this fact take time to learn about trading and also take personal responsibility for your finances.  It looks like normal people are starting to buy into this vision in ever larger numbers. And, I for one, think that’s wonderful.

ABOUT THE AUTHOR

Oleg Giberstein is co-founder of Coinrule, a beginner-friendly and safe trading platform enabling you to automate your crypto investments across multiple platforms, helping you protect your funds and catch the next great market opportunity.

Coinrule gives investors, from beginner to pro, access to algorithmic trading without having to learn a single line of code.

Coinrule is both educational and gamified helping deliver financial inclusion for all by giving everyone the tools to compete in a new world of trading.

https://coinrule.io/

https://www.linkedin.com/company/coinrule

https://www.facebook.com/CoinruleHQ/

https://www.instagram.com/coinrulehq

https://www.seedrs.com/coinrule/coming-soon

Apply now for BioAccelerate 2020 – the investment-readiness programme for start-ups

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For start-ups and early-stage businesses it is always a good idea to keep an eye on the opportunities for accelerator programmes and grants that can make a huge difference to their business development.

If you have already incorporate a business or a thinking of taking the plunge in the 

biosciences, food and drink, health, agri-tech and all aspects of the circular economy,  you should look urgently at BioAccelerate 2020.

BioAccelerate, AberInnovation’s flagship accelerator programme for early-stage businesses and start-ups, across the UK, is back for its third year and seeking participants for its next cohort.

Applications are now open, and close on October 14th.

Participation in the programme is free of charge to successful applicants. In phase one there are two £50,000 awards and six £10,000 awards available for the strongest pitches as judged by a panel of experts in business growth on the final day.

Launched in 2018, BioAccelerate is a programme of training and mentoring which helps entrepreneurs and business founders to bring the best ideas within the biosciences, healthcare, agri-tech, and food and drink sectors to market. BioAccelerate is an ideal opportunity for entrepreneurs with a great idea to get the support and help they need to make their dream a reality and create the high growth businesses of tomorrow. With support from UKRI- BBSRC, AberInnovation can now give intensive and thorough investor-readiness support to start ups in food and drink, all aspects of the circular economy, health and agri-tech.

The tailored 13-week programme blends intensive workshops with group activities and hands-on mentoring. BioAccelerate 2020’s first workshop kicks off on Wednesday 21st October 2020.

Six graduates of the programme (as chosen by the panel of judges) will be invited onto the second phase of the programme and given further opportunities to develop their business plans and products. This will culminate, once again, in a pitch day, this time to venture capital specialists and investors. The best two propositions will be awarded £50,000 each to help take their innovation to market.

The 2020 BioAccelerate programme is supported by the Biotechnology and Biological Sciences Research Council (BBSRC), part of UK Research and Innovation.

Brand-new event and conference space within AberInnovation will allow BioAccelerate workshops to take place in a socially-distanced manner and the programme will be delivered using a mixture of in-person and virtual methods. The programme delivery will once again be led by investment-readiness specialists Nurture Ventures.

AberInnovation recently moved into its new £40.5m campus development in Aberystwyth. This has been funded by: The European Regional Development Fund, through the Welsh Government; the Biotechnology and Biological Sciences Research Council (part of UKRI); and Aberystwyth University.

To apply to be of this year’s BioAccelerate from AberInnovation, see: https://aberinnovation.com/en/our-community/bioaccelerate/

About the Author

Dr Rhian Hayward, MBE is CEO of Aberystwyth Innovation and Enterprise Campus (AberInnovation).  AberInnovation provides world-leading facilities and expertise within the biotechnology, agri-tech, and food and drink sectors. Set in stunning scenery between the Cambrian Mountains and the Irish Sea, the £40.5m Campus offers an ideal environment for business and academic collaboration to flourish.https://aberinnovation.com/

To apply for BioAccelerate: https://aberinnovation.com/en/our-community/bioaccelerate/

Registration number: 4797388.
Telephone: 01843 831088
Email: enquiries@speedieconsulting.co.uk
Website: www.speedieconsulting.co.uk