For an experienced industry insider to have been so blind as to what was about to unfold really does goes to show how remarkable changes in 2008 have been. I took my Branch Manager and Lettings Manager for a slap up target-setting meal early in December 2007. Suffice to say we were about as far out as you could possibly be!

The speed and scale of the decline in house sales, and subsequently prices, must have shocked even those few who had predicted some amount of change. Not a single industry predictor I saw, be they lenders, surveyors, TV pundits or investors, envisaged a decline of any sort in prices; let alone the 15%- 20% that has ensued. Sales volumes for agents reduced by 60/70% and understandably many agents failed in such an extreme climate. Those who survived had to adapt quickly. The lettings market became a saving grace. The fact that the average lettings fee is about 1/3rd of a sales fee meant agents were unlikely to be making much of a profit, if at all, but those who could manage a decent number of rentals could at least aim to break even or minimise losses.

This was certainly the case for Imagine. Our prime office location really paid dividends for picking up lots of rental applicants working around the town centre and I suspect that we agreed more rentals than any of our competitors during the year as a result. It wasn’t without sacrifices though. All my staff had to take a pay cut and the team had to pool their commission to ensure everyone earned a reasonable wage. This allowed us to maintain the staffing levels, which in turn allowed us to maintain service standards, which I know also helped us stand out from the crowd.

You will understand that on the back of such a torrid 12 months, I am apprehensive about making predictions for 2009. I have two main hopes for next year. One would be for more rounded journalism rather than the sensationalist headline grabbing type we have to endure, that for me, talks us into even bigger problems. The other essential requirement is for the banks to turn on the taps of lending and actually make it viable for more people. Only this will see the flow of sales increase, a return of any sort of confidence and some level of normality. For everyone's benefit, I hope this attitude to lending is changed (or forced to change) sooner rather than later.

In the meantime, I'll be toning down my targets for the coming year and my Managers will be getting a cup of tea and biscuits as we discuss this, rather than a slap up lunch.

Seasons Greetings from the entire Imagine team.