Those wishing to invest in property this year need to be aware of the emerging markets and demographics in order to make the best decisions.

Here, you will discover the ultimate real estate investment guide to purchasing property in the year ahead.

Which areas should you focus on?

Not all areas of the UK are facing a tough property market. In fact, some areas are positively thriving. If you want to ensure you are making the right investment, there are certain locations throughout the UK that you should be focusing on.

Birmingham is a key area currently experiencing adequate growth. It is experiencing significant infrastructural developments and has seen a drastic increase in the level of inward investments. It is thought the city is going to witness a 14% growth over the next three years, making 2019 a great time to invest.

Newport in South Wales is another area to consider. Out of all of the UK council areas, the town has been recognised as the 9^th largest in terms of increase in house prices. According to local estate agents, there are waiting lists of buyers looking to invest in the area. This means, if you want to invest in Newport, you are going to need to be patient.

Other key areas experiencing a strong property market include Trowbridge in Wiltshire, Northampton, Leeds, Leicester and Coventry.

Which sectors are performing well?

In terms of which sectors to invest in, there are a couple of market trends to pay attention to this year.

Due to economic uncertainty, the rental market is expected to rise significantly over the next year. However, changes in legislation have led to many buy to let landlords pulling out of the market. Further changes set to be introduced in the form of the Tenant Fees Bill on June 1^st, 2019, could potentially push more landlords to leave the market. This means, there will be a higher demand for private rental opportunities. Investors who have the funds could therefore significantly profit from buy to let opportunities.

Auctions are also going to play a large role in the property market. Investing in property from an auction house enables investors to potentially snag a bargain. More sellers are likely to turn to auction houses, particularly if they require the funds quickly.

Overall, the property market has proven how resilient it can be in recent years. There may still be a lot of economic uncertainty, but as you can see above, some areas and sectors still remain lucrative to investors.

This week Finance Monthly hears from Nick Williams, Head of Business Development at UK Accountants, Intuit, who discusses change management methodologies and outlines an 8-step process for accountancy firms to apply Dr John P. Kotter of Harvard Business School’s methodology to ensure a smooth transition to Making Tax Digital.

These are changing times in the UK's accounting industry. Making Tax Digital (MTD) is the biggest overhaul to the taxation system in decades, and firms are not only adopting new ways of working, but they are completely re-thinking business models to meet the evolving needs of their small business clients.

The shift to digital accounting introduces new opportunities for accountants to take on more of a financial advisory role, providing real-time insights and strategic guidance to grow their clients’ businesses. However, while the shift to digital accounting is part of a wider push to digital in nearly all aspects of both our business and personal lives, the enormity of it cannot be underestimated. To ensure a smooth transition for their practice and their clients, accountants would do well to approach it in the same way as any other change management programme.

One of the most well-known change management methodologies is by Dr John P. Kotter of Harvard Business School, who observed countless leaders and businesses as they were trying to transform and execute their strategies, and developed the 8-Step Process for leading change. Here’s how accountancy firms can apply the same methodology to ensure a smooth transition:

1. Establish a Sense of Urgency: For months – years perhaps – we’ve been saying “it’s not too late to be early” to prepare for MTD. Communicate the message internally and externally that now it is in fact is a bit too late to be early. It really is time to move forward with cloud-based accounting to avoid a last-minute panic when deadlines approach.
2. Create the Guiding Coalition: Having dedicated “experts” flying the flag for digital accounting will help to ensure broader education among all employees on the forthcoming regulations. Start a process to train fee earners on your preferred cloud software and have "champions" trained as soon as possible.
3. Develop a Vision and Strategy: Think about how you can use MTD to seize new market segments or opportunities. For example, there are an estimated 1.75 million landlords in the UK, and all those earning more than £10,000 from property income will be liable for Making Tax Digital. For some, recording transactions online will be a first, and they will likely seek counsel from dedicated experts. Be one step ahead by positioning yourself as a future-ready firm.
4. Communicate the Change Vision: Once employees are up to speed on the changes, running a Making Tax Digital marketing campaign with clients is critical. Telephone calls, emails, client letters and even social media marketing will help to communicate these changes, and position your practice as a firm that is there for its clients every step of the way.
5. Empower Employees for Broad-Based Action: Some firms and their clients will be new to digital accounting; however, employees should be given freedom to experiment with different ways of working. Periods of change are frequently followed by periods of innovation, so try not to hamper any enthusiasm as employees “test and learn” to drive better outcomes for their clients.
6. Generate Short-Term Wins: Employees and clients will be more receptive to digital accounting if they see immediate benefits. Highlighting the time saved from less manual entry and the benefits gained from automation, for example, can help staff members see the potential of their roles to evolve from keeper of historical records to real-time financial advisor.
7. Consolidate Gains and Produce More Change: Use data to establish what changes have driven the best rewards for clients and share best practices across the business.
8. Anchor New Approaches in the Culture: Reward employees who share examples of how they have used digital accounting to achieve a better outcome, and encourage sharing, feedback and open discussion as you adopt new technologies to take your practice to the future.

By adopting a change management mindset, firms can ensure they stay ahead of the curve and have a business set up for long-term success.

Whether it’s in investing, a partnership, a sponsor, or simply a paying client, a sinking ship can cause a deep wound in the business. Here Rachel Mainwaring, Operations Director at Creditsafe talks Finance Monthly through the steps in identifying a failing house.

One of the fears for any business is that it won’t get paid for the work or services it has supplied because their client is in financial difficulty. This fear became more prominent last year when, for the first time in three years, there was an increase in businesses closing their doors through insolvency (up 24% on 2015).

Given the uncertainty within the UK economy after the Brexit vote, an increase in failures was not entirely surprising. But knowing who will be affected is a trickier call. When a company gets into trouble, it can often take the businesses it deals with by surprise. Unfortunately, a sinking business is not always as obvious as the Titanic going down with the band playing.

With 2017 set to be just as unpredictable as 2016, it’s essential that companies are attuned early to the signs of possible distress. Obviously a negative balance sheet and falling profit can indicate that a company might be failing – but results statements in Annual Reports or company filings can be issued many months after year-end and long after problems have begun to take hold.

There are other, less obvious signs that business leaders should be looking out for when doing their due diligence on the companies they are in business with, as well as those they may be about to start working with.

These signs can usually be found in a company credit report, which is why they really are worth investing in obtaining. Things to look out for include:

Changes in directors. It’s natural for directors to change occasionally within a business, but if it becomes a trend, or if a director isn’t replaced within a few months, it could be a sign of deeper issues within the company.

Directors with previous failed ventures. You can check individual directors’ histories – and if they have a record of previous failures, that could be a warning sign. Our data found that if a director has been involved in a company that has failed in the last three years, they are nine times more likely to fail again compared to a director who has never been involved with a business collapse.

Adverse payment information. According to trade body R3, at least one fifth of UK corporate insolvencies in 2016 were caused by late payment or the insolvency of another company. If there is an increase in the number of days a client is taking to pay their bills, that could indicate cash flow difficulties. Check whether their average Days Beyond Terms (DBT) has increased or whether they have any CCJs against them.

Spike in views of a company’s credit report. It’s natural that if other businesses are worried a company is getting into financial difficulties, they will check their credit status and report. So look to see whether there has been a rise in the number of views. It could be due to other issues, but nevertheless it can be a useful indicator.

Links with businesses with low credit scores. Many companies are owned by or have links with other businesses. Their financial position can have a knock-on effect on each other. So another thing to look at in a credit report is the information on linked companies and other businesses in the Group structure. Look at their credit scores and histories – it could be very worth doing.

It’s important to study a credit report carefully and not merely look at the topline statistics. It’s also important to do some of your own research. What’s been written about an organisation in the press, for example? Do you have contacts at other businesses who may have worked with them?

What’s more, it’s important to keep monitoring on an on-going basis: if they seem fine in January, that doesn’t necessarily mean they will be, come July.

It’s also possible to sign up for risk tracker alerts that automate your monitoring process and notify you when there has been a change to a company’s credit report – from a director leaving to the company receiving negative publicity in the press.

Keeping abreast of your clients’ credit status is not difficult to do. The small effort involved could pay for itself many times over if it prevents your business incurring a bad or irrecoverable debt.

Article 50 has been triggered, Brexit has well and truly begun. While the European Chief Negotiator for Brexit, Michael Barnier, would like negotiations to be completed within 18 months, the market characterised by economic and political uncertainty looks set to continue long into the future. So how should businesses behave? Michael Gould, CTO and Founder of Anaplan, sets out a five point guide to making the most of your business in such scenarios.

With all this in mind, businesses need to ensure that they are prepared for every eventuality. We’ve already seen shifts in exchange rates and with knock on effects such as price rises and likely regulatory and even workforce changes, there are a host of factors which businesses should already have on their agenda as having the potential to impact their organisations. With Brexit now in full swing, here are my top five tips for wrestling business success from the jaws of economic uncertainty.

1. Stop Waiting

With so many politicians, academics and economists each throwing in their two cents on Brexit it can be hard find any clarity around the real outcomes of Brexit. A recent survey by the Bank of England has shown a modest pick-up in UK investment, but businesses are still holding off on some longer-term investment due to a lack of visibility around future trading relationships. Whilst it’s tempting to hold fire on any serious decisions and adopt a ‘wait and see approach’, it could result in falling behind competitors and losing market share.

Staggeringly, our research revealed that two-fifths of businesses are yet to begin planning for Brexit. Avoid having to play catch up: take the time to gain an understanding of all the potential outcomes of Brexit and start from there. For example, businesses could use planning tools to simulate the impact of fluctuating exchange rates, or plan for potential scenarios on trade deals and tariffs. Another option is to explore different models of economic growth. A sensitivity analysis can then be run based on these projections, with the aim of mitigating risk and helping to plan for making the most of any opportunities.

2. Spot the opportunity

There’s no denying that the Brexit vote has brought an unprecedented level of uncertainty to the UK’s economy, but there are some forward-thinking businesses that have seen change as an opportunity to gain a competitive advantage, and adapt their services for changing consumer requirements. In fact, our research shows nearly one in three (29%) business decision makers say that the choice to leave the EU has already positively impacted their organisation. These uncertain times can be a chance to drive operational improvements or increased revenues.

The key is to identify the opportunities early. Once you understand where the openings are, success will emanate from effective planning. This means having a real-time view of the business and the market as a whole, and being able to react quickly to the slightest change. A good mix of teamwork and the right technology are vital here.

3. Take Control

To begin with, the success or failure of this transition will come down to the quality of leadership. Informed and confident business leaders will help engender a more positive attitude across the organisation. Our research found that many employees (40%) believe that knowledge and guidance should come from the CEO. But there’s a lack of faith: only 20% of respondents actually trust their leaders to provide this expertise. An effective leader inspires in times of change and uncertainty. Those at the helm of the organisation must seize the moment, take control of the situation, and crucially, be seen to be doing so by their employees.

4. Collaborate

Strong leadership from the top is vital for any business strategy, but collaboration throughout the planning cycle is just as important. Involving employees from different teams, disciplines and levels across the organisation will bring new ideas to the table, ensure everyone is bought into the strategy, and deliver a more robust approach moving forward. In uncertain times employees will value open communication and inclusiveness even more.

5. Adopt a Data-Driven Approach

While strong leadership and collaboration are both crucial to business success, companies must have the correct tools in place to take action, or they will struggle to adapt. With this in mind, it is surprising to see that so many British businesses are still relying on technologies that were developed over 30 years ago to plan in today’s market: pen and paper (58%), email (81%), Excel (86%) and Word (80%), to name a few. They simply are not fit for purpose anymore.

The data that a business produces has to be seen as one of its most valued assets. Organisations need to take full advantage of it and use the insight to make the most relevant and informed decisions. In such a volatile market, real-time data is invaluable. For instance, managers can use their company’s data to accurately simulate the potential outcomes of any decision, and forecast the possible impact.

Unfortunately, there isn’t a step-by-step guide or a defined roadmap for what the world will look like post-Brexit. However, businesses can make sure that they are ready for every outcome, modelling and planning for all possible futures. Organisational and cultural factors will play their part in ensuring that businesses are making the most informed decisions. But, those that also take a data-driven approach with the latest technologies will be a step ahead, and ready to take advantage of every opportunity in a dynamic and shifting economic market.