A number of letting agents could put their businesses up for sale rather than face the hard work and costs imposed by increasing legislation.
Ian Wilson, CEO of The Property Franchise Group, said that in the last week alone, franchisees have completed on three purchases of businesses looking for a quick exit.
He said: “We have a well-oiled machine and access to cash. When sellers want to move quickly, we can do it.
“The Government’s announcements at the weekend, about regulation of the industry and compulsory client money protection, although welcome and well-meaning, will probably be clumsily executed.
“It’s going to be a lot of work to stay in the lettings game.”
He said potential sellers should think hard about their best options.
The three newest purchases have all been by Martin & Co franchisees.
In Runcorn, TCG Residential has been sold to Stephen Hember of Widnes and Denise Griffiths of Liverpool South.
Wilson said that in that case, the seller wanted a quick sale, and achieved it. He wants to go round the world on his motorbike.
In Grantham, Philip Connor has bought Smart Lettings, and in Horsham, GL & Co Estate Agents have been acquired by David Nicholson of the Crawley office of Martin & Co.
Comments (6)
Regulation is nothing to be scared of and developments in tech will make compliance increasingly easy anyway- just get the knowledge and adopt tech that solves the real big issues for you.
Not so sure.
Speak to anybody in the FS world. See how their job is effected with red tape, endless top up qualifications, the money needed to be spent and the fact tech has only increased expenditure for them.
Its a pandoras box. Once this is open its too late, you are coming from it in an ideal scenario, without the thought it will be used to create an industry within an industry.
There will always be a place for properly regulated firms which add real value for their clients and offer great customer service. If legislation drives out the poor operators, that can only be in the public interest.
Yes I agree – scaremongering to drive sellers into Ian Wilson’s waiting arms. I’d be more worried about being one of his franchisees than being an independent.
Scaremongering. If you’re qualified and regulated, there is nothing to fear here.
If you’re not regulated with CMP, you’re not protecting the consumer. Get regulated.
If you’re not qualified, but know what you’re doing, you can get qualified easily. If you don’t know what you are doing, you shouldn’t be within a mile of people’s safety and assets.
Which isn’t to say that some operators will still think getting qualified and regulated is too much like hard work and exit. But would you buy a practice run with that attitude?
What about the hundreds of lettings agents that are just getting by with a modest portfolio? – The traditional MR & MRS letting agents.
They are being squeezed by the portals, they are having tenants fees banned, rent and rates are going up, They do not believe in ARLA as they have never done anything for the industry.
Now they have to pay out for a qualification they do not need, sign up to a CMP policy that they do not need. Adding further financial pressure to their business.
Seems a little unfair to me, I think a number will sell up. I think the corporates will buy them up, i think you will then see far higher charges on landlords which in turn will be passed onto tenants in the rents they pay.