Apparently, "letting is the new sales", the Government missed a trick in 08 by failing to create "a more interesting bank" and the public need to get used to the idea of selling for less (and buying for less, too). Kicking off this year's Rat and Mouse interview series, somebody we've quoted many a time in the past but never before had the chance to chat with, so… so we've been exited about this. Douglas & Gordon's Ed Mead is one of the country's most outspoken and interesting estate agents, an expert on the London market, he's on the board of the Property Ombudsman and he's the man I'd want overseeing the sale of my house.
I love this, from your blog’s “About me” page: “I've been an agent for over 30 years now and have gained a good reputation for saying things as they are. This can occasionally commercially disadvantage me, but really I don't give a t*** as at least I can sleep at night.” The suggestion is that you’re a bit of a lone voice. Critics of the market have long accused journalists and agents of being co-conspirators in propping up the market. Any truth in that?
I know some journalists and some estate agents are arrogant but in the same way King Canute thought he could stop the tide anyone that seriously thinks they can affect the market is mad. Everyone is tired (and it’s partly why people think all estate agents are thick) of hearing agents talking the market up. What’s wrong with giving accurate up-to-date info?
What led you into estate agency?
I got chucked out of Bristol Uni and didn’t have a huge number of options. Luckily I have a brain so have done okay.
Is it a tough job if you’re the kind of person who doesn’t like to toe the line? Or are there circumstances in which standing out a little can be an advantage?
Read the rest of the Ed Mead interview, after the jump.
Depends who you work for. If you are a bit free-spirited, there’s no point in working for Knight Frank. The reason people go to someone like them is the name, not necessarily the quality of the people there. I’ve already mentioned brains, but let’s be honest… with no qualifications needed, this industry isn't for rocket scientists, and so if you are a bit different there’s quite possibly a niche for you somewhere. However, there’s still plenty of satisfying work out there for you if you prefer a safer and more structured environment. I’ve been lucky enough to find a like-minded bunch of people.
To what extent do you think your own high-profile presence has affected the culture of Douglas & Gordon?
I’m not sure it has. There are a few strong characters at D&G and although it just so happens that my particular contribution gives me a high profile they are both happy to recognise its worth to the company whilst completely ignoring me if I’m being a prat.
For the Rat and Mouse, the inherent contradictions and self-deception of the British relationship with property is fascinating and largely inspired the blog. Houses are both hugely emotional purchases and important personal investments. Is it a mistake to think the two can comfortably mix?
Yes, I think it is. Your house is your home and the worst obsession created around property is that which seems to dictate to people that they cannot sell for any less than they bought for. This has been borne out of decades of steady growth and has steamrollered the simple fact that if market prices are down you might sell for less, but you’ll buy for less too. As we know buying anything with your heart is dangerous, and given property purchasing is no different to look at it as an investment is a paradox at best.
Have people’s attitudes to their homes changed during the years you’ve been an agent?
What, apart from waffling on about how much the bloody thing’s worth you mean?
We’ve seen a very slow market and falling house prices (in some areas). But – nationally – houses remain, by most established methods of calculation, unaffordable. The Government appears to think the way to deal with this is to fiddle around with different ways of justifying loans. Are they right?
It’s a market, one which is operating in an unusual new paradigm, but it’s still a market. Inertia has led to low volumes as many stick to what they’re living in with affordable loans. Average values are down c. 20%, which is a lot. Current inflation hasn’t fed through to wages (which is a whole new ball game) and so perhaps the only variable that’ll lead to mark to market trading values will be an interest rate rise. But thank God we live in a free market so it has to find its level. If I was being ultra-critical I would say the last Gov’t possibly missed a chance to create a more imaginative bank whilst bailing them out in 08.
Is the popular image of renting changing, due a change, likely to change?
Yup, letting is the new sales. As someone who rented for over 20 years there’s nothing wrong with it. Gov’t needs to do something to increase private rented sector supply as other sectors can’t keep up. Tax breaks?
I notice that, via your website, you’ll offer advice to people who submit questions. Are the majority about timing and the market? Have you ever been encouraged to comment on the behaviour of other agents?
I rarely comment on other agents’ behaviour as it makes us all look bad. We know who the bad ones are but a combination of human nature (read "greed") and enough gullible new members of the public to believe the bullsh*t means they’ll be in business for a few years yet.
The death of the high street estate agent model has been called a number of times recently (at the hands of the online alternative, sell-by-owner sites, the recession)… how do you see the business in ten or 15 years’ time?
Not much of a difference really. Standards are generally a lot higher, especially in London. There’s always been a section of sellers and buyers who operate below the line but buying a flat is not like buying a car. It’s an emotional process and humans need to stay involved. The English don’t like to talk about feelings or money, and the hassle factors involved in getting a sale through mean you need a [good] agent on your side. Given over 32 years of experience you need all the help you can get.
Finally, it’s a bit of an R&M tradition to end with a favourite estate agency joke. It is – of course – optional, but if you’d like to share…
If you want to see a more expensive property I can show you the same one tomorrow.
Thanks so much, Ed, for your time. It’s really appreciated.
Head over to Ed's website here, or follow him on Twitter here.