Property Focus: The Interview – John Walley

In our series of interviews with top professionals from across the property sector, TheBusinessDesk catches up with John Walley, partner and co-founder of Drivers Jonas’ Manchester office.

What are your views of the current state of the commercial property and property development markets?

I’m trying to find a market! The private sector has substantially withdrawn and the public sector is doing its best to keep activity going, but this can only continue for so long as talk of ‘cuts’ from every part of the political spectrum clearly indicates.

This is certainly the most severe downturn I have experienced and it’s very different in character. The fall in values has been far deeper and quicker than anything we have seen in modern times, and it has been given a new dynamic with the crisis in the banking sector.

The main problem for the property industry is the inability to raise debt. When the banks are truly back on their feet and lending levels return to normality, then this current downturn will soon be behind us.

I think talk of green shoots is certainly credible, but their roots are in shallow ground. All the indications are that residential values are beginning to stabilise and that house builders are returning to buy land, albeit at very different levels when compared with the height of the boom.

There are signs of improvement in the investment market with prime yields beginning to compress. The relative cheapness of the pound will help the UK attract investment from overseas.

What key challenges and pieces of legislation do you think will most affect your sector over the coming months?

The biggest challenge will be ensuring the economy does not quickly fall back into recession, experiencing a dreaded ‘double-dip’. This would destroy the delicate confidence that has begun to return to the markets.

Why do you think North West is a good place to do business?

Over the last few decades the region has successfully transformed itself from an area reliant on heavy industry, to one with a diverse service based economy – a trend exemplified by Manchester.

The statistics prove that the transformation the city has undergone in recent years places it in far better stead to benefit from the next upturn than its immediate peers. Go to Birmingham or Leeds and everyone is talking about Manchester.

Changes that have taken place since previous recessions have made the North West a leaner and fitter region, and a place rich in opportunity for businesses.

What is your favourite building/development in North West and why?

I couldn’t possibly choose just one. As far as buildings go, I will always have a fondness for Ship Canal House on Kings Street, Manchester, which stems back to my days working for the Manchester Ship Company and subsequently, Peel.

My favourite public building has got to be the magnificent Bridgewater Hall.

As a development, Spinningfields is hard to beat in terms of its architecture and the huge leap forward it provided for Manchester’s office market. It shows just what the city can do to compete with other centres.

If you could improve anything in the region, what would it be?

I have wasted far too much time sat on unreliable train services. The region needs a truly world-class public transport system and links if it is to continue its growth.

What was your first job and how did you enter your current line of work?

Working on my father’s farm but I was not keen on a seven day marriage to the land so I opted not to work on there permanently.

My first job came was with the District Valuers’ Office at the Inland Revenue in Wrexham, shortly after my training with the RICS. By 1972, I made the move to Manchester office of Dunlop Heywood, working across valuation, development, management, agency and planning during 18 years at the company.

In 1993 Drivers Jonas, was considering a Manchester office for his firm and I offered to set it up. I have been here ever since.

What do you most enjoy about your job?

Property is a people business in which you get to meet so many interesting characters. Aside from that, it’s all about achieving the end game and seeing the product on the ground. It’s a great feeling seeing something that was once on paper standing there before you.

What barriers have you faced during your career and how have you overcome them?

Any fee earning consultant will agree that being direct is one of the hardest things you have to learn, and that comes with experience. I’d say not having enough time is always a problem too. Having a few more days in the week would help.

What is the best piece of advice you’ve ever been given?

Avoid ink. Use a rubber and a pencil to correct mistakes.

And the worst?

The daily rubbish I receive in my inbox. Some of the stuff that gets circulated astounds me. So much time gets wasted trawling through emails trying to sell you something that you have absolutely no desire or need for, and worst, at times you don’t even know what it is.