Category Archives: Property News

Construction, News, Property, Property News

‘Outstanding’ workers clock up 50 years with housing developer

A HOUSING developer has praised the ‘outstanding’ work of two employees who have dedicated a combined total of 50 years to the company.

Mike Hillbeck, 64, and Stuart Brown, 55, have both worked for Russell Armer Homes, based in Kendal, Cumbria, for 25 years and have helped develop the excellent reputation of the long-established company, which celebrates its 60th anniversary this year.

Mike joined Russell Armer as a site manager, and he has overseen the creation of thriving communities through the construction of hundreds of new homes.

The first development he worked on as Site Manager was a 45 unit project at Esthwaite Green, in Kendal, in 1996 and he is currently leading the project to build 78 new homes in Oakfield Park, in Kirkby Lonsdale.

Mike said: “Everybody always wanted to work for Russell Armer Homes because of its great reputation, and I’m pleased to have been able to work here for so long. Russell Armer is a brilliant company to work for, and I love working here.”

Stuart was employed by Russell Armer 25 years ago as a buyer for the company, and he has worked his way up to the integral position of Sales and Purchasing Manager.

His role involves a wide range of responsibilities, including advising on the specification of homes and which products are used on housing developments.

Stuart said: “Being someone who has always lived locally, I am proud to work for a company which makes a big difference to the community by building a quality product and bringing top range homes to the area.

“I am passionate about making sure we build the right products in the right places, creating great communities in the process, and that is something we definitely achieve here.”

Earlier this year, Russell Armer Homes, which was established in 1961, was acquired by Penrith-based homebuilder Genesis Homes in a deal which brought together two of the leading housing developers in the North West.

The amalgamation has created excitement among staff about what the future will bring for both companies.

Stuart said: “Combining the experience of the Russell Armer team with the innovative ideas from Genesis Homes can only be a winning formula.

“I’m looking forward to the challenge of becoming Group Purchasing Manager and playing my role in bringing together the expertise within both companies.”

Mike and Stuart were presented with gifts and mementoes as a thank you for their long service during ceremonies organised by the Russell Armer management team.

Managing director Nicky Gordon said: “We are so thankful to the long service Mike and Stuart have dedicated to the company, and they have played crucial roles in developing Russell Armer Homes into the well-respected company it is today.

“We owe a great deal of gratitude for their excellent work ethic, outstanding quality of work and high level of expertise, and we can’t thank them enough for the great jobs they do day in, day out.”

In addition to work being carried out at Oakfield Park, in Kirkby Lonsdale, Russell Armer Homes will be constructing new houses at Meadow Rigg, in Kendal, and in Halton, Lancashire.

Photos

Stuart Brown (left) and Mike Hillbeck have both worked at Russell Armer Homes for 25 years.

 

News, Property, Property News

How to choose the property development project that is right for you

By Ritchie Clapson CEng MIStructE, co-founder, propertyCEO

Small-scale property development offers something for various tastes, but if this is something you are thinking of trying, be careful not to bite off more than you can chew. There are risks.

Small may be easier and less risky, but will it make you enough profit? This is where you need to do your own maths. You’ll be targeting a minimum of 20% of the GDV (gross development value – the amount your units will sell for) as your profit, and it will take you on average 18-24 months to complete a small-scale development end-to-end. So, as an example, to make an average of £100k a year, you could do one project every 18 months that produces £150k in profit. That equates to a GDV of £750k, which in development terms is very small. Or you could do two even smaller schemes with a GDV of £375k apiece. Simply decide how much you want to make and work out the size of developments you will need to do. You will quickly spot that you do not need to do mega-developments to make a very decent living, but the math works equally for those aiming for more significant returns. A big attraction of property development is that what represents a small project in industry terms can be quite literally life-changing from a personal income point of view.

When considering what should you build, you need to be thinking about reducing risk (again). Building a £1m luxury house is riskier than building five £200k flats because, if the house does not sell, then you are left paying interest on all the money you borrowed, but if just one flat does not shift, at least you will have already paid back your funders by selling the other four. Also, I would urge you to build for the ‘need’ market, rather than the ‘want’ market: this means 1 to 2-bed flats, or houses with up to 3-beds. 5-bed detached luxury houses look nice, but they are a non-essential purchase and can be more difficult to sell in a tough market.

Find out where the demand is in your target area and who will be buying. Downsizers? Young professionals? Families? They each have different requirements for location, transport links, local amenities, and home design, and your local estate agents will be a valuable source of guidance. Build for your customer and never for yourself, and always focus on your bottom line. You may think those gold-plated taps look amazing, but if they dent your profits, go for something plainer. After all, you will not be living there.

Risk crops up again when it comes to planning. Since planning permission will generally be required for most projects, it would be great if the English planning system was ultra-modern, well-resourced, speedy, and completely free of any doubt or subjectivity. Unfortunately, the opposite is true. Although the recent Queen’s Speech announced a draconian overhaul of all things planning-related, my preferred route is still to avoid it as much as possible. I have seen many planning applications get terminally stuck, costing their developers both time and money. Luckily, we have a weapon in our armoury that can make life a lot easier, and it is called Permitted Development Rights (PDRs).

PDRs allow us to change the use of a building without the need to apply for full planning permission, and such is the government’s frustration with the lack of homes being built currently, they have seen fit to significantly extend the PDRs available in 2021. From August, you will be able to convert a wide range of properties into residential, many for the first time, without applying for planning permission.

Ideally, you want your project to be within an hour’s drive from home. While you will not be spending much time on-site, you will still need to do your research and due diligence before buying. Having to travel the length of the country is a bind, plus it makes for a more distant relationship with your contractor, which is a disadvantage. If you do not find a decent project within an hour’s drive, then you have not been looking properly.

For the new or inexperienced property developer, choosing the right project can often present something of a challenge, but small-scale property development is now seen as a highly attractive option for those becoming disenchanted with the buy-to-let model.

 

 

ABOUT THE AUTHOR

Ritchie Clapson CEng MIStructE is a veteran property developer of almost 40 years and co-founder of propertyCEO, a nationwide property development and training company that helps people create a successful property development business in their spare time. It makes use of students’ existing life skills while teaching them the property, business, and mindset knowledge they need to undertake small scale developments successfully, with the emphasis on utilising existing permitted development rights to minimize risk and maximize returns.

https://propertyceo.co.uk/

https://www.facebook.com/propertyceotraining/

https://www.instagram.com/propertyceotraining/

https://twitter.com/Property_CEO

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

 

 

Construction, FInance, Finance News, Property News

New research by Avamore Capital has highlighted that SME developers are continuing to face major challenges in relation to sites stalling for financial reasons.

A year on from the 2020 FMB House Builders’ survey, which found 33% of respondents said that lending options had deteriorated YOY, and a staggering 42% stated that they were involved in sites that were stalled for financial reasons,  Avamore Capital is reporting that this situation is the same, if not worse, and that demand for Finish & Exit funding is higher than ever.

A leader in principal development and bridging, Avamore has seen a 62 per cent year-on-year rise in completions of its Finish and Exit product, designed for part-built development projects; moreover, it claims indicators are that it show no signs of slowing, as the long term impact of multiple UK lockdowns remains clear.

Further research has highlighted four key reasons that are the most prevalent, or have had long lasting effects, which have resulted in the high number of projects arresting. These include: workforce instability and skill shortages, increased material costs, forced delays impacting agreed payback periods and likelihood of exit through sales.

“Whilst the property market has been fairly resilient through the pandemic, supported by government support packages, a number of factors have meant that many developers, although they were permitted to actually build, did not have the resources available to do so,” says Philip Gould from Avamore Capital.

“Various issues driven by COVID in the last 16 months have seen many projects fall behind and hit funding challenges – meaning they can’t meet market demand. Some developers found that they had to close sites completely with set-ups not allowing for appropriate social distancing measures, others were facing increased costs and most faced shortages of material supply. This combination meant that the number of developers obtaining cash out of their projects through sales is falling.

“Therefore, when planning for projects – and particularly as the pandemic wages on – it is important to pre-empt these intensified financing factors, which may impact timeframes, costs and ultimately profitability, and plan differently. We advise these steps:

 

Managing Workforce Stability – to reduce chance of running over term

The Q1 2021 Federation of Master Builders State of Trade survey highlighted that builders have reported increased difficulties in recruiting almost all the key trades in the first quarter of 2021. 38% reported bricklayer shortages, up from 22% in Q4 2020, and 34% are struggling to hire carpenters/joiners, up from 23%. The report attributes this to a lack of quality skilled entrants to the industry and increased loyalty to current employers. 

“This means that projects could take much longer to recruit for than ever before and so, we may see more developers starting all of their processes earlier in order to ensure a strong construction team” says Gould.

“Around 10% of the part-built schemes Avamore has funded in 2021 have reported that difficulties arose directly from being unable to secure a strong workforce upfront. Therefore from a financing side, the danger of not setting up the correct infrastructure means that projects could take longer than planned and so, the developer could run over term.”

 

Review current material costs – so financing forecasts are based on real time pricing 

According to the Department for Business, Energy and Industrial Strategy (BEIS) the overall cost of materials for new housing was 6.7% higher in January 2021 than in the same month in 2020. Another example is from the Timber Trade Federation (TTF) which found that a range of ongoing logistical and administrative difficulties related to Brexit have led to supply problems and price rises.

Gould advises: “With supply chain issues and costs creeping upwards, it increasingly difficult for developers to effectively plan their cash flow schedules.

“14% of part-built projects Avamore supported in Q2 2021 required specialist structures to maximise funds available as soon as the loan completed; this was for the developer to cover the cost of urgent materials on site. In development finance, a contingency is always added to the loan (a pot designed for unknown costs which developers might face), but it is advisable it should be avoided or utilised as late into the project as possible. Fixed price contracts for future materials or using suppliers who offer the certainty of delivery has become more important than ever. “

 

Consider delays and discuss loan extension options upfront

“With the impacts of delays and costs, developers may have either run out of their existing development finance facility or come to the end of their term. Any development loan is issued for a set amount of time and most lenders will be looking to be repaid as soon as that period has come to an end. It is therefore likely that most developers had to negotiate with their funding partners across 2020 to avoid a formal ‘default scenario’.

“Whilst the lending market may have been relatively lenient at the start of the pandemic, it’s unlikely that relying on short term funding flexibility will remain a prudent strategy. Developers need to stick to a timeframe but also factor in the potential that the pandemic and Brexit is likely to continue to have an impact on many industries.

“It is therefore important for developers to have conversations with funders upfront about the possible scenarios they could face over the life of a loan.”

Whilst Avamore Capital adopts a careful lending strategy, in the last four weeks it has extended £2,762,802 worth of loans for an average of seven months after developers faced COVID driven delays during the build and now need additional time to sell the units.

“Discussing options at the outset such as informal extensions, conditional extensions or reduced extension fees would be prudent to ensure that should the unexpected occur, developers are prepared to finish their project in a cost-effective way”, adds Gould.

 

Secure an exit – determining the stability of the end user is more important than ever

“A strong exit strategy has always been important but considering the volatility of the market and economic uncertainty, it is likely that circumstances at the end of projects are becoming increasingly less predictable. As the stamp duty reduction comes to an end the market is likely to be impacted.

“In Q1 2021, the average price of a unit completed by an Avamore borrower was £426,258. With the stamp duty threshold at £500,000 the number of potential buyers for those same projects is likely to have reduced by September this year when the scheme closes completely.

“It is clear that the government has implemented measures to plug this potential shortfall at the lower end of the market, policies such as the 95% LTV mortgages will continue to make house buying attractive but, it is almost impossible to determine whether these measures, which involve borrowing more, will have the same impact as significant cost savings.

“Understanding the end user and determining their stability is therefore more important than ever.”

Gould adds: “It’s important that everyone involved in the industry prepares for new challenges, including how projects can be financed and rescued should problems arise.”

News, Property News

Last chance for homebuyers at Wimborne development

Demand for new homes in Wimborne is outstripping supply, with just 10 homes remaining for sale at a new housing development under construction in the town.

Bellway is delivering 84 new homes at Badbury Reach, off Cranborne Road, including 60 homes for private sale and 24 affordable properties available for local people through rent or shared ownership.

With construction work progressing well, the final homes are expected to be completed at the end of the year – but if sales continue at their current rate, the site will be sold out much sooner.

Kim Caldwell, Sales Director at Bellway Wessex, said: “Demand is far outstripping supply at Badbury Reach as these much-needed new homes are proving to be popular with young, growing families looking for a prime location to settle down.

“There are now just 10 homes left to be snapped up, which is no surprise due to the high quality of craftmanship at the site and the close proximity to local amenities.

“Families are particularly happy to be located opposite a new primary school that has recently been built as part of the wider neighbourhood in Wimborne.”

There are currently 10 homes for sale at Badbury Reach in a range of three and four-bedroom styles. The final home to be released for sale will be the Bowyer showhome, a four-bedroom detached property.

Kim said: “Badbury Reach is in a highly sought-after residential area within walking distance of Wimborne town centre.

“The homes we’re building form an elegant collection of 13 different house types with a mix of two, three and four-bedroom layouts, offering something for a range of buyers.

“Following the success of the development so far, we’re now expecting the final homes to be sold soon.”

Prices at Badbury Reach currently start from £404,995 for the Millwright, a three-bedroom semi-detached home.

For more information about the final homes left for sale at Badbury Reach, visit bellway.co.uk or call the sales team on 01202 088290.

News, Property News

Devizes development nears halfway mark

Construction work is approaching the halfway stage at Bellway’s Quakers Walk development in Devizes.

When completed, the site will consist of 123 new homes, comprising 86 properties for private sale and 37 affordable homes for rent or shared ownership.

A total of 49 homes have now been built at the development, which is located off Quakers Road.

A further 27 homes have already been sold and are currently under construction. Building work is due to finish in autumn next year.

Christel Hawkins, Sales Manager for Bellway South West, said: “Construction work is progressing extremely well at Quakers Walk, with around 40 per cent of the homes at the development now built and occupied.

“There has been strong demand from a wide variety of buyers who have been attracted by the mix of two, three and four-bedroom houses available, as well as the site’s convenient location just over a mile from Devizes town centre.

“This has been reflected in the fact that almost half of the private homes have already been sold since the development’s launch in February last year.

“A new community is beginning to form at Quakers Walk and we look forward to welcoming more residents into their homes as the development to continues to take shape.”

As part of the planning agreement with Wiltshire Council, Bellway will be making financial contributions towards surface improvements to the Quakers Walk Path and the Kennet and Avon Canal towpath.

Bellway achieved five-star status from the Home Builder’s Federation (HBF) for the fifth year in a row in 2021, after 90 per cent of customers surveyed by the HBF said they would recommend the housebuilder to a friend.

A selection of homes are currently at the development, with prices currently starting at £334,995 for a three-bedroom semi-detached property and £377,995 for a four-bedroom detached home.

For more information on the properties available at Quakers Walk, visit bellway.co.uk or call the sales office on 01380 323532.

 

CAPTIONS –

  • Interior images of The Wroughton showhome at Bellway’s Quakers Walk development in Devizes
News, Property News

First birthday brings double delight for facilities management firm

A facilities management firm launched in lockdown is marking its first birthday by doubling its workforce.
Elevate FM, based in George Street, Birmingham, was set up last June, offering property maintenance services for schools and businesses.
Instead of having to find, vet and co-ordinate a host of different contractors, clients were able to contact Elevate FM and get the job sorted in one phone call.
The firm started with two people and has now taken on Talesha Chisholm as office administrator and Derek Hands, an in-house maintenance engineer.
Director Beckie Wait said a second maintenance worker was due to be taken on in the next four months and later a business development manager.
“We are delighted to have Talesha and Derek on board,” she said. “To have in-house people like Derek means we can react quickly and assess the job quickly.
“We are very lucky to be expanding after such a turbulent time for a lot of businesses and we expect demand will increase now that people are returning to offices. We are very much looking forward to seeing what 2021 brings.”
Beckie said the firm was set up in June last year when a lot of businesses were finding it difficult to access tradespeople amid the uncertainty that the pandemic brought.
“They were getting let down and they couldn’t find tradespeople that they could rely on,” she said. “A lot of trades were even turning away business, so lockdown helped us progress.
“People still had buildings to maintain even if they didn’t have staff in them – they had to keep the maintenance up to make sure the insurance was still valid.
“Often jobs involve a number of different trades and it can be a real headache contacting them all, coordinating the work and making sure they are the right people for the job.
“When people contact us, we do all of that; we search for the right tradespeople, we vet them, carry out all the necessary checks and co-ordinate the work.
“Then, if you run a school, you can get on with running a school while we get on with sorting the work that needs doing.
“We take all the hassle out of it – it’s one phone call to one person and you know it’s getting sorted, rather than have to ring round and contact a number of different trades.”
Beckie added: “Schools are a big client sector for us as well as property management companies and commercial property agents.
“They often have multiple sites which they can’t always get round to visiting. If we are called out, we are proactive. We’ll have a look and alert them to other issues so it’s like an extra pair of eyes on-site for them.”
To find out more about the services Elevate FM offers, visit www.elevatefm.co.uk
News, Property News

New homes development in Salisbury set to launch on-site

Bellway is set to open the sales office at its Harnham Park development in the coming weeks after a successful off-plan launch earlier this year.

As well as the sales office, a four-bedroom Goldsmith showhome will open its doors to the public in June, giving prospective buyers the first chance to see inside a completed property at the site off Netherhampton Road.

A total of 82 homes will be delivered at the development, which is transforming a disused former storage yard into a collection of two, three and four-bedroom properties for sale.

There will be 49 homes available to buy on the open market and 33 affordable properties for rent or shared ownership.

Kim Caldwell, Sales Director for Bellway Wessex, said: “Around 20 per cent of the private homes have already been snapped up since we started selling off plan in January, which demonstrates just how popular Harnham Park is proving with local buyers.

“The homes are from our Artisan Collection, Bellway’s flagship range of house designs that combine traditional craftmanship with modern construction techniques, and we’ve witnessed a strong desire from buyers to own one of these new styles of properties.

“Harnham Park will feature nine different house types from the Artisan range, including the Goldsmith design which visitors will be able to see first-hand later this year.

“Buyers have also been attracted by the development’s location, just over a mile from the city centre. The fact that the highly regarded Bishop Wordsworth’s School is within walking distance is a particular draw for families.

“Harnham Park benefits from excellent transport links for commuters, with easy access to the A36 and A338 providing direct routes to towns and cities such as Bournemouth, Southampton and Winchester.”

A selection of two, three and four-bedroom homes are currently available at Harnham Park, with prices starting at £257,995.

For more information about the development, visit bellway.co.uk or call 01722 626427.

News, Property, Property News

Residents start to move into new homes in Corfe Mullen

The first residents have now moved into their homes at a new housing development in Corfe Mullen.

Bellway Wessex is delivering 78 new homes at the Windgreen Gardens site, off Wimborne Road.

Launched in October 2020, the development will comprise 58 properties for private sale and 20 affordable homes for rent or shared ownership.

The homes are part of the Artisan Collection, Bellway’s flagship range of house types which combine traditional craftmanship and architectural flair.

Kim Caldwell, Sales Director for Bellway Wessex, said: “Corfe Mullen boasts a wealth of amenities and good transport links, making it a highly desirable area for Dorset housebuyers. Our Windgreen Gardens development will make a significant contribution towards meeting the demand for new homes in the area.

“Interest in the development remains high following the launch last autumn and construction work is progressing well, with the first homes now completed and occupied.”

As part of the planning agreement for the development, Bellway will provide £200,000 for open space and recreation improvements, as well as a further £250,000 to maintain the on-site natural green spaces.

Windgreen Gardens features a range of two, three and four-bedroom properties for sale, with viewings of the three-bedroom showhome available by appointment only.

Kim said: “The development’s unique location is ideal for families, with the site being situated next to both Lockyer’s Middle School and Corfe Mullen Recreation Ground.

“Commuters will also appreciate the good transport links, with easy access to the A31 for Dorchester to the west and Wimborne to the east, as well as connections to the M27 and M3.”

A selection of two and three-bedroom houses are currently available, with prices starting from £298,995.

For more information about Windgreen Gardens and to take a virtual tour of available properties, visit bellway.co.uk. The sales team can be contacted on 01202 983978.

Appointments, Property News

Sprift appoints conveyancing specialist

In its bid to achieve true cross-industry collaboration, Sprift, the property data specialist, has appointed Paul Smith as head of conveyancing technology.

Paul’s role will involve consulting with the conveyancing community – working towards further developing Sprift’s dashboard of instant, comprehensive property data, furnishing conveyancers with upfront information, including protocol forms to enable a smoother and speedier transaction. He will also be charged with growing a team to support conveyancing clients.

Prior to starting with Sprift, Paul worked as solicitor relationship manager for Simplify. He was also regional sales manager for Conveyancing Data Services Ltd, and business development manager for Property Search Group.

Matt Gilpin, CEO at Sprift, said: “We’re delighted that Paul has joined, building on our conveyancing technology, and supporting Sprift’s work towards changing market behaviours through improved upfront information.

“The past year has put a real spotlight on the conveyancer and agent relationship, particularly with the rush to transact ahead of the stamp duty holiday deadline. The time has come for a better handover between estate
agents and conveyancers, and for absolute transparency. We recently announced that Sprift would be providing the ability for comprehensive upfront property information to be shared instantly to all parties in a property transaction, via our online dashboard.  This has had a hugely positive response, and we are excited to be enhancing our offering to the conveyancing sector.”

Paul Smith added: “By providing all information on a property – from flood risks to planning applications – from the outset, or at the time when a Memorandum of Sale is produced, the conveyancer’s job is made easier because potential issues will already have been flagged. By streamlining the process and collaborating, transaction times should reduce and the overall buying and selling experience will be smoother.

“I have been hugely impressed by Sprift’s work to date, as well as the ambition and inspiration of the leadership team. I was very keen to join, and to build up the conveyancing proposition – particularly as the company works towards embracing this new process and a really positive handover.”

There are over 28 million properties stored on the Sprift platform. The company has produced nearly 1.3 million reports for clients, whilst driving a 22% average increase in business won[1], and it has saved clients over
£65m research hours[2].

For further information, please visit www.sprift.com

References

[1] Based on valuations pre-using Sprift reports vs post adopting and
utilising Sprift reports.

2 Based on research time taking approx. 2-3 hours - costing approx. £50
based on the average agent's salary.
Finance and Banking, Property News

Grand designs… On your money: Barclays issues high-vis scams warning to Property and Construction sector

Barclays data has revealed that scams targeting businesses increased by almost a third (31 per cent*) in January and February, when compared with last year.

Impersonation scams were the most commonly used tactic by criminals to target businesses in 2020 (44 per cent), with figures more than doubling in the second half of the year when compared with the first half (62 per cent). Impersonation scams are when fraudsters pretend to be organisations or authorities in the hope that they’ll trick their victims into sharing personal or banking information – or to even transfer money out of their account.

The bank is issuing a scams warning to all businesses, but particularly the 15,725 property and construction businesses in Wales**. Nationally, the data reveals that small and medium enterprises (SMEs) in this sector made up almost a quarter of all business scams last year (24 per cent). On average, each scam cost property and construction SMEs a staggering £4,110.

Barclays has partnered with football legend and TV presenter Dion Dublin to raise awareness of the growing dangers of fraud and scams, and the sophisticated tactics criminals are using to defraud businesses. When he’s not presenting on the TV, Dion’s time is spent running his electrical company, Scott Dublin, of which he is a partner.

Dion Dublin said: “I’ve experienced fraudulent activity before, with criminals first trying to take £400 and then £1,600 out of my business account. Offenders know small business owners are time-poor and take advantage of busy schedules to see if they can get away with scamming people.

“My wife, who is my business partner, spotted the suspicious account activity labelled as tech services and got in touch with the bank right away. We’re now in a routine of checking daily to ensure no one is trying to get hold of our money. Building a good defence against fraudsters requires solid organisation and communication, plus I like to think my football background means I’m able to spot a bad transfer when I see one!”

 

John Heaver, Barclays Head of Business Banking Fraud, said: “Property and construction businesses often display their company details outside or near construction projects they’re working on, making it easier for fraudsters to research and target their scam. SMEs should consider having checks in place to confirm the legitimacy of any new suppliers, or even unexpected changes to existing suppliers, during a job.

“It’s incredibly important that business owners and their staff are aware of the different type of scams that can occur and remain vigilant at all times. The vast majority of scams could be prevented by taking simple steps such as double checking payment details with a source you know is genuine. I’d encourage SMEs to talk about preventing fraud with their staff, suppliers and clients, however if they are ever in doubt, they should contact their bank for more advice.”

 

Barclays checklist for SMEs to help build the foundations of scams prevention:

  1. Put on your scams hard hat

You’d never walk on a construction site without a hard hat – likewise, you should never disclose sensitive banking details. If you receive an unexpected call, email or text – whether claiming to be your bank, the police, or a company such as your internet provider – never disclose your banking details or transfer money to another account. Never download any software or give access to your device. Instead, call the person back on a known and trusted number to verify the request.

 

  1. Research on a tea break

When looking to make purchases from a new seller, take the time to thoroughly research the company, check customer reviews, and try to avoid placing large first time orders. If buying a larger item, try to see it in person (providing it is within government guidelines to do so). Check any documentation and serial numbers carefully to ensure what you are buying is genuine and if there is a legitimate reason why the cost may be lower. Remember, if it seems too good to be true, it probably is.

 

  1. Be airtight with suppliers

If information about your suppliers is accessible to the public, it may make it easier for fraudsters to target you by intercepting supplier emails and invoices, and replacing the genuine bank account details with their own. Before making a payment to any new banking details, verbally confirm they are correct with the supplier or sender on a number that you know is genuine. Do not call the number listed on the invoice or email containing the payment instructions in case it’s fake.

 

  1. Another brick in the firewall

If you get an unexpected text message or email asking you to follow a link or open an attachment, use a different method to check is this is a genuine request first before clicking on anything. Make sure your corporate infrastructure is secure and your online systems up to date and protected with robust anti-virus and firewall software.

 

  1. Is this really your boss?

Have you ever received an email from your CEO or Financial Director asking you to make an urgent payment? Fraudsters are able to impersonate emails and signatures to make them appear to be from the people you work with. Pause, pick up the phone and verbally confirm with your colleague that the payment request is genuine. If it really was them, they won’t mind you double checking.

 

Last year, Barclays prevented hundreds of millions of pounds of fraud and scams, and the bank continues to ramp up its mission to educate their customers on the rising threat. Weekly cyber security awareness webinars are available for all UK businesses, and were attended by 1200 SMEs last year.

Customers should get in touch immediately with Barclays if they feel they have been the victim of a scam on 0800 3891 652.

To find out more about how you can protect your business from Fraud and Scams visit: https://www.barclays.co.uk/business-banking/manage/security/