A flurry of acquisitions and mergers is taking place on the high street, while commentator Bob Scarff (see separate story in today’s news schedule) is forecasting the same story among online firms.
EYE also understands that one of the better known online firms is being touted for sale, allegedly with a £3m price tag.
On the high street, one independent firm which has just completed a hat-trick of acquisitions, says owners of independent high street firms will increasingly call time on their struggle to keep their businesses viable.
Yorkshire firm Linley & Simpson cites the challenges set by rising red tape and the impending fees ban.
But the firm says that it will take advantage of other agents quitting the sector to expand.
Separately, Leaders has announced the purchase of a business in the north which adds some 900 managed properties to the Leaders portfolio.
The three latest deals clinched by Linley & Simpson propel its letting portfolio past the milestone of 5,500 managed properties across North and West Yorkshire.
They also add homes to its residential sales division.
The firm, which has 11 branches, has taken over Mint Property in York; Acorn Estates, which had two offices in north Leeds; and an undisclosed agent based in Leeds city centre.
The portfolios of all three agencies will transfer into Linley & Simpson’s existing branch network.
Director Will Linley, who founded the company in 1997 with Nick Simpson, said: “The letting sector faces an unprecedented set of challenges from all fronts – from growing red tape to the looming tenant fees ban.
“As the market consolidates as a natural response to this, both at pace and at scale, we view this as a real window of opportunity for us.
“We believe there will be more and more agencies looking to call time on their growing struggle to overcome these challenges, and the money and infrastructure this requires to succeed.
“These latest acquisitions strengthen our footprint in our Yorkshire heartland in a very timely way.
“They also create a strong platform for taking forward our ambition – and the confidence we have behind that – to invest in the future of the letting sector.”
He added: “Mint and Acorn were both retirement sales and we thank the founders of both companies for entrusting us with the diverse property portfolios they have built up over almost 40 years between them.”
The trio of deals, each bought for an undisclosed sum, was financed through internally-generated funds. It will result in more than 350 properties switching to Linley & Simpson.
They take to 30 the number of acquisitions by Linley & Simpson since it launched as a dedicated letting agent 21 years ago.
It now employs more than 150 staff and now also deals in sales, and land and new homes.
Meanwhile, Leaders has bought Temples, in Northwich, Nantwich and Chester.
The Temples deal is the tenth acquisition completed by Leaders in the last nine months and acquisitions director Matthew Light yesterday said more are in the pipeline.
Shelter etc think they are clever by saving tenants a few quid in fees and labelling agents as bad guys.
The reality is when tenants have to sit stressed out in telephone queues and treated like a number, because small agents had no support, this will go unreported.
Bless this world for today it is ironic.
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The maths are fairly straightforward, letting businesses in high street shops managing 120 properties or less in provincial markets are going to go bust after the tenant fee ban. If they were economically rational then they would get out now, while there were buyers. If they hold on, hunker down, try and save overheads, the inevitable attrition in their portfolio (11% per annum across our 50,000++ portfolio) will get them in the end.
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ChumpExecutive – respectfully – absolute nonsense ! As an independent with an active letting business, we are busier than ever and the fee ban will make little difference. Anyone who was foolish enough to have to rely on tenant fees to make money is running an unsatisfactory business model. We are seeing considerable growth in our business as many landlords are fed up with the poor service received from large faceless organisations and the ones who opted for the online jokers are learning a lesson fast. Smaller professional firms with reputations for quality will always be in demand.
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I got out of lettings last year as the small guy has no power against this avalanche of propaganda spouted by media , govt and shelter..
Hats off to RichardF though…. only the brave deserve to survive..go get them.
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Bless You,
Which area of the country are you in? We are in the Birmingham, West Midlands area. Just wondered if you are a long way away?
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not far agent v..not far.. i am watching. i have your email i will make contact .. but first iam off to pub to watch gold cup !! ha any tips?
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Good I would really like to make contact with you…..especially as we may have something you would be very very interested in.
I never bet on the horses I am afraid, but I like names….I would have gone for ‘Double Shuffle’ if it had been running….but maybe ‘Road To Respect’….seems apropriate today somehow.
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