Troubled online agent House Network has been acquired after going into administration, it has been announced.
The buyer is Universal Acquisitions Ltd (UAL).
The move will see the UK’s first online estate agency come under new management, with a revised business plan.
A spokesperson for UAL said: “House Network was the first online estate agency and up until recently had been successfully building this market sector, offering real value to sellers and buyers.
“Our research has shown it was a strong business delivering good organic growth based on great service to customers. It posted strong profits for many years, building market share through customer referrals.
“Unfortunately, investment was made into the firm, preparing it for a potential IPO, at a time when the market was softening.
“A dramatic increase in the cost of acquisition led to financial difficulties forcing the firm into administration.
“We are delighted we have been able to very quickly get the firm operational again so it can continue to offer the quality of services it is known for.
“The management of UAL has many decades of estate agency, digital marketing and e-commerce experience, and is very aware that the market is going through a difficult time.
“A new operational model will reflect the need to manage costs whilst maintaining high-quality service to all clients.
“It is based on the view that digital estate agents must continue to evolve and improve the customer experience, and as digital natives become home owners and sellers, the market share will grow.
“We are not coming into this blind with grand plans to disrupt an industry overnight. We are realistic about the online estate agency sector and, for example, do not believe it will have a 25% market share in the next 12 months.
“However, we do see areas of growth and expansion which can be achieved by stabilising the business and providing the excellent staff at House Network with the products they need to excel.
“We will continue to offer customers who want to use a digital agency a great service with a combination of fantastic tech and personal service to slowly build the business up.”
Further announcements will be made by UAL as changes are implemented.
Comments (12)
Sorry to counter the arguments about buy cheap get cheap but I sold my house with House Network last year. They were fantastic and I had no hesitation with recommending them to others that were selling. Sold my house in 6 weeks and had a large number of good quality viewings. If you look at the companies accounts you can see that the business model worked up until 2015 when two new directors were appointed, possibly to take the business to new places as it was doing well but obviously at a price and the company have clearly been shafted to the tune of millions by some so called business men who now reside in France and Monaco.
In other words any cheap fee outfits whether so-called online or not are always the first to go when the market contracts. In a race to the bottom nobody wins.
A dramatic increase in the cost of acquisition led to financial difficulties forcing the firm into administration.
https://www.geometrydash.me/
That footballer chap from the other day may be interested.
>We are realistic about the online estate agency sector and, for example, do not believe it will have a 25% market share in the next 12 months.
So what is realistic then?
I suppose for all Agents unless you have deep pockets then if you are breaking even or better then just stay in the game and see what happens. The business from the ones who can’t do that will end up with the ones who can.
Dog eat dog.
Woof!
Hmmm
“We are realistic about the online estate agency sector and, for example, do not believe it will have a 25% market share in the next 12 months”
Try the next 5-10 years or beyond! If at all?
U.A.L a very adaptable name. Useless Acquisition Limited on this one.
I’ll be interested to watch how this “rescue” develops, especially if it’s devoid of future “crowdfunding” as part of its recovery plan.
“Stand on your own 2 Feet Estate Agency” ……getting rarer by the day!
Wonder if they’re using their own money?
Will need very deep pockets
A relief for the staff perhaps though that is has been done so quickly