A property director has been disqualified for 12 years after claiming Covid ‘bounce back loans’ fraudulently.

Brendan Michael Gaughan from Glasgow took out the government-backed loans totalling £135,000 that his companies were not eligible for.

Gaughan was director of three separate property management companies, Gaughan Group Ltd, Gaughan Property Ltd, and Rentl Property Ltd. They were only incorporated in February 2020 and did not trade until April 2020.

The companies were not eligible for funds through the Bounce Back Loan (BBL) scheme, as it was only available to firms that had been doing business on 1 March 2020.

Gaughan Group received a BBL of £50,000, Gaughan Property received a BBL also of £50,000, and Rentl Property Ltd received a BBL of £35,000.

Personal gain

Gaughan transferred all the funds into a single account and proceeded to use the money to buy a property worth nearly £160,000 in August 2020. He then sold the property in March 2021 for just over £140,000, and on the same day transferred £100,000 of the proceeds to his personal account.

All three companies were put into liquidation in October 2021, which triggered an investigation by the Insolvency Service.

Steven McGinty, investigation manager at the Insolvency Service, says “Bounce Back Loans were made available for trading companies adversely affected by the pandemic. Brendan Gaughan should have known his companies weren’t entitled to the loans yet he took them anyway and used the funds for personal gain.

“We will not hesitate to take action against directors who have abused Covid-19 financial support like this.”

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An estate agency branch in a famous tourist village has been revived after being effectively mothballed during Covid.

The office of Samuel Wood in Church Stretton within the Shropshire Hills AONB was opened in 2014 to great fanfare but became a victim of the pandemic when the company decided to convert it into an ‘interactive hub’ from which staff could organise and attend property viewings.

This has now been reversed and the branch will now be run by Andy Price (main pic), who joined the company in February.

He is new to the estate agency sector which he says he’s ‘passionate about’. Before joining he worked for a business systems supplier operating within the automotive and education sectors.

“Samuel Wood is a well-known, well-respected company and highly recommended,” says Price.

“We do a really good job and I want to help build on that reputation. I see the client relationship as the most important one we have. People come back to Samuel Wood time and time again in their property journey and I will nurture those relationships as they are special and important.”

Covid-19

The estate agency’s co-director Russell Griffin told local media: “We are thrilled to re-open our offices in Church Stretton after a period of closure partly due to Covid-19 restrictions.

“Now with a refreshed office environment and upgraded computerised software system, we are fully operational and hope to bring a new dimension to the local property market with the very latest marketing technology.

“Church Stretton has always been a key component of the Samuel Wood organisation.”

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Trade body Propertymark has updated its Covid guidance for estate agents for the first time since late 2020.

The changes, which reflect the arrival of the Omicron variant, include guidance on isolation rules, face coverings, public access to their branches, quarantine rules, Right to Rent and ventilation of homes during viewings.

Isolation rules

Changes have been made by the UK Government to household rules if individuals are vaccinated or unvaccinated and if contact has been made with others.

New rules also come into force today, 11 January 2022 for those that aren’t showing symptoms but get a positive lateral flow as they will now not need to take a confirmatory PCR and instead, automatically isolate.

Face coverings

Since the start of December, face coverings have been required by law in most indoor settings with estate and letting agents listed by the Government as places where you must wear a face covering when dealing with members of the public. Face coverings are strongly recommended on viewings.

Visitors to offices

Agents should ensure that signage is visible in brand and/or other communications are promoted to advise visitors that face coverings should be worn.

Quarantine rules

On 9 January 2022, the UK Government updated its guidance on travel to England which now requires automatic self-isolation for unvaccinated people entering the country and changes to what COVID-19 tests are required.

Right to Rent

Adjusted checks remain in place until 6 April 2022 when landlords and letting agents in England will revert to face-to-face and physical document checks.

In December, the Home Office announced that they recognise the benefits of the adjusted checking process and from April will enable landlords to use certified Identification Document Validation Technology (IDVT) service providers to carry out digital identity checks on their behalf for many who are not in scope to use the Home Office online services, including British and Irish citizens.

Ventilation

Following a letter to landlords in December last year from housing minister Christopher Pincher, advice has also been included on how to ensure good ventilation in properties to help reduce transmission of COVID-19.

“Propertymark wants to ensure that our members are equipped with the most up to date and valuable information to help them, their colleagues and their clients stay safe and limit the spread of COVID-19,” says Timothy Douglas, Policy and Campaigns Manager at Propertymark (pictured).

“Compliance with any new changes is crucial for agents and we would advise all our members to familiarise themselves with our updated best practice guidance so that they can play their part in the country’s recovery from the pandemic.”

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Propertymark has backed the Scottish government’s decision to make house hunters attending sales or letting viewings to take lateral flow tests prior their appointment.

The measure is contained with the Scots guidance for those moving home updated and follows First Minister Nicola Sturgeon’s speech in the Scottish parliament. No details have been given on how agents will police the system.

Other measures include recommending that businesses do not have a Christmas works party and to implement working from home for staff ‘where reasonably practical’ and encourage twice-weekly Covid testing for all staff who are working in branches or offices.

Omicron

Sturgeon (pictured) said: “While we are speeding up vaccination, we must also try to slow down Omicron.

“That is why we are also proposing, albeit reluctantly, some further protective measures. I am appealing to everyone to follow the advice, to help slow Omicron down while more of us get our boosters.”

Daryl McIntosh, Policy Manager at Propertymark says: “The measures introduced are understandable and most agents have been still adhering to previous measures.

“The new guidance for viewers to take lateral flow tests is logical but could be difficult to manage and it will put the onus onto agents to ensure the safety of themselves and their clients.”

English restrictions

But unlike in England where estate agency offices have been specifically included in the list of high street locations where the public and agents must wear masks, they are not included on the Scots list.

The English guidance says that: “Staff within sales and lettings agencies are required to wear face coverings when they are in a part that is open to the public and when they are likely to come into close contact with members of the public.”

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In a sign of what may soon be around the corner for English, Welsh and NI estate agents, Scottish First Minister Nicola Sturgeon has announced new Covid restrictions to office working.

She told MSPs that next week it will become a legal requirement for companies to re-introduce home working for staff who did so during the first lockdown.

Sturgeon revealed that while her government was working hard to speed up its vaccination programme, she had reluctantly concluded that measures are needed to slow down the spread of the Omicron variant.

The new rules, which are to be published within days, will include a legal requirement for companies to protect workers who cannot work from home with specified safety measures within their offices and branches.

This will include regular testing and the use of screens.

“Let me be clear – we do not do this lightly and I know how hard it is so please believe me when I saw I would not be asking for yet more sacrifice if I did not genuinely consider this to be necessary,” she said.

“We want to keep businesses open but to achieve this we are asking them to step up the protections within their premises.”

She went on to say that the existing Covid regulations would be amended to put a legal requirement on those running businesses or providing services to take measures that are ‘reasonably practicable’ to minimise the risk of transmission.

On Monday similar but less restrictive measures were brought in by the government in England, only requiring that office and branch workers should work from home ‘if they are able to’.

Boris Johnson’s ‘Plan B’ also set out how firms should consider whether home working is appropriate for workers facing mental or physical health difficulties, or those with a particularly challenging home working environment.

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Estate agents who are able to work from home to do their jobs must do so now following the Prime Minister’s ‘Plan B’ restrictions announcement last week.

Firms should also consider whether home working is appropriate for workers facing mental or physical health difficulties, or those with a particularly challenging home working environment.

Also, the new rules urge those who do work in-branch to consider taking lateral flow tests regularly to manage ‘your own risk and the risk to others’.

The new rules also remind the property industry that estate and letting agency employees who cannot work from home and are required to work in their office or branch must wear a face covering by law unless they are exempt or have a ‘reasonable excuse’.

Estate agents are also being told to work from home if they feel unwell.

Also, prompted by the rapid spread of the Omicron virus across the UK, the Government says: “Office workers who can work from home should do so from Monday 13 December.

“Anyone who cannot work from home should continue to go into work – for example, to access equipment necessary for their role or where their role must be completed in person.

“In-person working will be necessary in some cases to continue the effective and accessible delivery of some public services and private industries.”

But, as a recent Employment Tribunal decision revealed, these new rules will put agencies in a difficult position if a staff member does not want to work with other estate agents in a branch environment, but their job – such as a sales or lettings negotiator role – is difficult to do properly at home outside a face-to-face team.

Read the new rules in full.

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Confusion continues over how and when agents should wear masks while working in their branches following Sunday’s update from the prime minister on the government’s new Covid restrictions.

Several smaller estate agency bosses told The Neg taht official guidance did not provide clarity and that many branch staff were questioning whether they had to wear masks to work.

We asked three of the largest property industry organisations what rules they are telling branch employees to follow. All have taken different approaches.

The Guild

In summary: ‘At all times unless you operate a locked-door policy’

“Face coverings are now required to be worn in all shops and on public transport following the emergence of the Omicron variant in the UK,” says its Compliance Officer Paul Offley.

“In the guidance issued by the Cabinet Office, the list of ‘shops’ is quite extensive and includes estate and lettings agents, as well as auction houses.

“There is no clear guidance with regard to whether agents would need to wear a mask at all times or just when a member of the public is in the office, however, it would appear that it would be at all times unless the agent has screens up or has a locked door policy.

“Previous guidance states ‘it is recommended face coverings are worn when in an indoor setting with people you are not usually with.”

Connells Group

In summary: ‘At all times except when sat at your desk’

A spokesperson says: “Connells Group continues to follow government guidance at all times to protect colleagues and customers during the pandemic.

“All colleagues are required to wear a face mask when entering, leaving or moving around our offices and branches, and when out on appointments. Customers visiting any of our offices should also wear a face mask at all times.”

Propertymark

In summary: ‘Only when face-to-face with customers’

Timothy Douglas, Propertymark Policy and Campaigns Manager says: “The Health Protection (Coronavirus, Wearing of Face Coverings) (England) Regulations 2021 do not refer specifically to estate and letting agents, but UK Government guidance strongly recommends that a face covering is worn in enclosed spaces, where you may come into contact with other people you do not normally meet.

“With this in mind, Propertymark recommends face masks to be worn in branch when speaking to customers.

“Face coverings are not required if the door is locked and there are no members of the public in the office, but it is recommended.

“When out on appointments in clients’ homes, it is recommended to wear face coverings.

“At a time when the UK Government is increasing warnings and restrictions, agents have a responsibility to ensure they are acting in a way that enables consumers to continue to feel comfortable.”

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An employment tribunal has thrown out the case of a Countrywide property valuer who claimed he was unfairly dismissed after refusing to go into the office during Scotland’s second lockdown.

Graham Leitch, who had worked at Slater Hogg & Howison’s Livingstone branch since 2006, resigned in February after disagreeing with his boss about whether it was safe to return to work after Christmas last year.

His Countrywide branch manager, Michaela Brooks, told him that working from home would impact the team’s performance, increase the workload of the two other staff, and affect his ability to perform his job effectively.

Leitch did about five valuations a week, conducted follow-up visits with sellers and generated business by making 20 marketing calls to prospective clients each day.

He also covered the other staff members by taking telephone calls during lunch breaks. After the first lockdown, desks were more than 2m apart, everyone had to wear face masks when walking about the office and customers had to make appointments to visit. He worked there without complaint until January 2021.

Second lockdown

When the second lockdown was announced, Leitch became concerned about his health and safety and did not think the office was Covid-secure, so stayed away on 4th January, telling his boss that he could carry out market appraisals and meet with prospective clients at their property, but would otherwise carry out 95% of his duties from home.

However, he was told that he was needed in the office to deal with queries and field calls efficiently, otherwise the workload of the other two members of staff would be increased.

Leitch reluctantly returned to work but left again on 8^th January and was signed off sick by his GP due to work-related stress. He was put on unpaid leave by Countrywide and a resulting grievance hearing and appeal were both rejected. Leitch resigned on 26^th February.

The tribunal ruled that the company hadn’t failed to provide a safe working environment and was not in breach of a positive legal obligation to allow him to work from home.

It said: “The claimant had considerable input in terms of generating business and supporting other members of staff by working as part of a team of three…for the claimant to work effectively in his role of valuer as part of the team in the Livingstone branch he had to work in the office.”

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