That said, this is not the case for removals companies who tend to charge differently. For example, if a removals firm has a set fee for a three-bedroom house, then it won’t matter to them if the seller has had to take a lower bid offer from their buyer to sell it. Although this might affect other professionals in the property sector, it shouldn’t impact so much on removals firms. The same goes for man and van drivers who tend to operate at the smaller end of the market, typically helping with student moves or taking on the relocation work for couples with perhaps just a single-bedroom flat to their name.

It is likely, however, removals companies – large and small – will be affected if the housing market plummets and people simply don’t want to move or – worse still – cannot afford to do so. As such, some removal firms are already planning for the coming year with some sort of housing slump in mind. Although no one really knows exactly how things will pan out in the removals industry, inward investment is currently low and likely to remain so for a few months in 2023 at least. Why? Because of the uncertainty about the housing market in the country more generally, removals firms are tending to economise as much as possible already. This might mean not making an investment decision on the purchase of lifting equipment, new vans or even taking on additional members of staff for the time being. This could be a mistake, however, because what the coming housing market changes may mean is that more people move rather than fewer, at least in the short-term.

So, what is going on and what do the latest indicators from the housing market tell decision-makers in removals firms?

Dropping Asking Prices

According to industry data published by Zoopla, the online property marketing firm, house and flat sellers have already started to lower their expectations when putting their properties up for sale. Although some parts of London – typically the ones that had seen the most growth in house sale prices for the last few years – began to see negative growth much earlier this year, according to Zoopla’s figures, the dropping of asking prices has since become a nationwide phenomenon.

In other words, the expected slump in the housing market that has been widely predicted by economists and government statisticians alike for the coming year is already upon us. Zoopla itself says that average house prices are likely to fall by as much as 5 per cent in the coming year. Other reputable sources say that the drop could be by as much as double that. In just the last few months, sellers have typically had to settle for a house price that was 3 per cent below what they had initially marketed it at.

Of course, there would have been some properties that bucked this trend. Nevertheless, the difference between what sellers thought they could get and what buyers were actually willing to pay was quite marked. No doubt, some sellers refused to drop their prices and their properties remain on the market. So, although the 3 per cent figure might set alarm bells ringing in parts of the property sector more widely, it shouldn’t necessarily worry removals firms.

The reason for this is that – by and large – sellers have been realistic. What they have done is place their property on the market and realised that to get the deal over the line, they’ve needed to acquiesce to their would-be buyer’s demand for a lower sale price. In other words, houses have still been sold and people are still, therefore, continuing to move and to require the services of removals firms on the whole.

According to Zoopla’s data, it is the Southeast of England where the greatest adjustments to sellers’ expectations have been detected. That is not to say that house prices have been stable elsewhere, of course, merely that the phenomenon has been most pronounced in the places with the highest population density. What does this tell us? Firstly, it could indicate that house prices in the Southeast have been over-inflated in recent years, a situation that was not sustainable as it was simply too costly for many young people on average wages to get onto the housing ladder. In addition, it could mean that there is more competition in the more densely populated towns and cities of the Southeast. In other words, where sellers have been competing for the attention of a reduced number of potential buyers, only those who have been willing to adjust their asking prices have gone on to secure sales.

Wider Economic Troubles

Many people have put the shift in the housing market in the country down to the disastrous mini-budget that was announced by the then Chancellor of the Exchequer, Kwasi Kwarteng. Although the government’s announcement led to an increase in state borrowing costs and a significant fall in the value of sterling, the statement Kwarteng made may not be the only factor in what is causing the UK housing market to undergo its current significant changes. This is because there is another factor at play which the government may or may not have made worse depending on your point of view. In a word, this factor is inflation.

Of course, inflation is something that has been reflected in the housing market in the UK for decades. Despite a changing trade position with Europe, the credit crunch and numerous other factors, UK house prices have – more or less – seen sustained growth for 20 years. However, this is coming to an end just as the price of commodities is going up. Of particular note is the cost of fuel, something that disproportionately affects removal companies, of course, given their need to keep vehicles on the road. Therefore, off-setting high fuel costs against lower rental and property prices isn’t likely to work out for most business models.

Worse still, the Bank of England only has one lever it seems willing to pull to stem commodity prices in the country – interest rates rises. The baseline lending rate has risen several times this year already. Of course, this means that mortgage rates have also seen significant hikes, not least for fixed-price mortgages. For many in the property sector, it is the rise in interest rates that is most significant and, what’s more, many predict the Bank of England will push them up still further in 2023.

Past Lessons

It is important to note that interest rates were very high in the mid-1990s, at levels far beyond what most economists predict for the next year, at least. Back then mortgage lenders tended to repossess properties when borrowers fell behind with payments. These days, lenders tend to encourage homeowners to downsize to something more affordable instead so they can pay back their mortgages with a lower level of subsequent debt. This may work out in which case removals firms can expect more and more trades in the housing market to take place even though they might be at a lower overall value. There again, some homeowners with unsustainable mortgage payments may look at a less buoyant rental market and decide that moving into rented accommodation is a more affordable way to live. This might not suit all estate agents but it shouldn’t negatively impact on the way removals firms operate.

What may put more of a brake on moving is when homeowners face negative equity. This will mean they are likely to sit it out until such a time that the housing market recovers making it affordable for them to sell up and be able to pay off their borrowing in one go. Of course, when an individual is in negative equity will depend on when they bought their property, at what price and the current valuation in their locality. Nonetheless, the more house prices drop throughout 2023, the more homeowners will fall into this category. As such, removals firms will need to keep an eye on what the market is looking like in 12 months’ time just as much as they are today with regard to future investment decisions.

In short, some volatility in the housing market – such as we are seeing already – isn’t likely to affect removals firms much in the short term because it will mean people move in order to place their household finances on a more sustainable footing. If there is a sustained downturn in prices or there is a bigger than expected drop in demand for homes than is currently being predicted, then removal companies are likely to feel the need to plan for a harsher period with fewer trades and consequent house moves.

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Working as a self-employed van driver is a relatively new concept and offers an excellent and exciting way for anyone with a driving license and a roadworthy vehicle to earn money. More and more people have taken up the challenge of becoming self-employed and working as van drivers, which has resulted in a boom in the supply of delivery van drivers. This means that it can sometimes be challenging for van drivers to find a steady stream of jobs. While the ongoing pandemic has greatly increased the demand for parcel deliveries, the effects are likely to reduce again as the world returns to normality. Luckily, there are several different ways in which self-employed van drivers can ensure that they have a steady stream of deliveries and income. Read on to discover how you can keep your business growing:

Marketing

Many self-employed van drivers forget to think of themselves as businesses and not just van drivers. However, as a self-employed van driver, you are essentially running your own business and should operate it as such. No modern business can function without marketing and nor can a self-employed van driver. There are several different ways in which you can market your services to potential customers and not all of them cost money. Marketing is not always a complicated concept and despite what many people may think, it is possible to do your own marketing without spending a dime. Some of the ways in which you can use the internet to market your services include:

Social Media Marketing

Use tools like Facebook and Instagram to let people know that you offer delivery services. While these social media networks offer paid-for advertising options, it is not always necessary to use them. You can create a page dedicated to your delivery service and regularly place posts that advertise the services that you offer. In addition, ask family and friends to share your posts so that as many people as possible can see them. By doing this, people will become aware that you offer delivery services, which is the first and most important step to getting work. Later, when your business has grown a bit, you can also use paid-for marketing services to reach even more customers.

Have a Good Website

We all know that the internet is the busiest marketplace on earth and a simple Google search is the first thing we reach for when we need something, including delivery services. Having a good website is extremely important because it enables customers to find you and make contact easily. Every website should offer basic information such as a description of the services that you offer and the different types of goods that you can transport. In addition, you should use search engine optimisation techniques to make your website easy to find when people search for it on the internet. While you can easily create your own website with one of the many online website creation tools that are available today, it is often a good idea to get professional help involved. Your website is like a storefront so it should look professional and inviting to potential customers. You should also make it possible for customers to contact you directly through your website so that you can strike the iron while it is hot. First impressions count and your website is the first impression that customers will have of you and your delivery services.

Use Courier Platforms

There are several different courier platforms available and they all have one common goal, connecting self-employed van drivers with customers who need deliveries made. Registering on one or more of these platforms is a good way to gain access to more job offers. Many of the well-known courier platforms charge a small fee for using their service but this fee is well worth paying when you consider the number of delivery jobs that you can pick up from one of these platforms. However, it is important to make sure that you do enough research before deciding on a specific network. Look at things like comments from customers and drivers to make sure that the courier platform has a good reputation and that delivery drivers are treated fairly.

Use Technology as Much as Possible

There are several different applications and tools that are specifically designed to help self-employed van drivers manage their businesses effectively. Being able to manage every aspect of your business precisely is essential because it helps you to build a solid reputation. Applications can help you to plan routes and estimate delivery times accurately which is great for your reputation because it keeps customers satisfied. Applications can also help you to manage your costs effectively so that you can reduce operating costs and increase your profits as much as possible.

Partner with Online Retailers

Online retail is growing at a tremendous pace and this results in a much higher need for deliveries. Partnering with an online retailer and making deliveries on their behalf is an excellent way of growing your business and keeping your delivery van busy. Some of the large online retailers, such as Amazon, are known for partnering with self-employed delivery van drivers so it is well worth your time to investigate this option. You can usually find information about potential cooperation models and job opportunities on the websites of online retailers, which means that all that is required to get started is a little research.

Partner with Online Retailers

Online retail is growing at a tremendous pace and this results in a much higher need for deliveries. Partnering with an online retailer and making deliveries on their behalf is an excellent way of growing your business and keeping your delivery van busy. Some of the large online retailers, such as Amazon, are known for partnering with self-employed delivery van drivers so it is well worth your time to investigate this option. You can usually find information about potential cooperation models and job opportunities on the websites of online retailers, which means that all that is required to get started is a little research.

Browse Through Online Job Boards

Another way of finding delivery gigs is by browsing through online job boards. Many companies that are looking for delivery drivers might advertise on these job boards and it might be worth reaching out to them to check if it is possible to work as an independent contractor. While this option requires a little ingenuity and time, it can be well worth your while.

Be Reliable

It is important to remember that it is often much easier to acquire new customers than it is to maintain existing ones. By delivering consistently reliable services to your existing customers, your business will automatically grow thanks to word-of-mouth advertising. Since no other form of advertising can beat the results that can be achieved through personal recommendations, it is well worth ensuring that your customers are happy to recommend your services to other customers. By ensuring that you deliver reliably, your customers will usually be more than happy to recommend your services to other customers.

In Conclusion

Being a self-employed delivery driver can be a great challenge and a rewarding career choice. It offers flexibility and allows you to be your own boss but it also requires a lot of work in order to be successful. One of the most important aspects of working as a self-employed delivery driver is having a constant and reliable stream of delivery requests. This means that marketing and job acquisition is one of the most important aspects of being a modern self-employed van driver and you should dedicate enough time and resources to ensure that your business grows. With today’s modern technology and the internet, this is easier than it has ever been before and by creating a website and social media presence, you can make it easy for your customers to find you.

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