Property Businesses Face Rising Energy Prices As The Top Challenge, According To New Research

Property sector businesses were surveyed in Monahans’ South-West Market Research Report, which revealed that:

• 50% of respondents indicated their business is in a better position than a year ago, while 25% feel it is worse off.
• Half (50%) reported a turnover increase over the past financial year, averaging 29%, with no respondents noting a decrease.
• The primary challenge cited over the past year was rising energy prices, followed by issues with recruitment/retention, inflation/rising operational costs, and unpredictable customer preferences.
• Looking ahead, 75% expect energy prices to be the biggest challenge in the next 6 months, followed by political events, unpredictable customer preferences, and inflation/rising operational costs.
• A quarter of respondents made redundancies in the last 12 months.
• 25% believe the upcoming election will improve market conditions, whereas 50% anticipate a decline, marking the highest negative outlook across all sectors.

Martin Longmore, Partner, commented on the findings: 

“It seems there has been a lot to be positive about for businesses in the property sector; despite half (50%) experiencing difficulties on account of rising energy prices, it was one of only two sectors (the other being agriculture) where none of the respondents have seen decreased turnover in the last 12 months. Similarly, 25% of property businesses reported an increase in headcount, averaging an increase of 32%, while none reported a decrease.

“However, companies aren’t as positive about what the future holds for the sector, with no commitment from Labour to extend the stamp duty exemption for first time buyers a possible cause for concern. Of all the sectors, property ranks highest (alongside agriculture) for businesses believing the election will worsen market conditions. 75% of property businesses envisage energy prices being the major issue in the coming months, while inflation and unpredictable customer preferences are also of concern. In general, property businesses seem to have faired relatively well over the last 12 months or so, but there is fear on the horizon.”