The number of letting agents in the UK is set to shrink by a fifth over the next two years, franchised lettings giant Belvoir has claimed.
This prediction is made by the company in its latest update on the number of assisted acquisitions made by its franchisees of property portfolios, which numbered 26 across its network during 2018, adding 4,400 properties and boosting the company’s managed portfolio total to 62,000.
Last year assisted acquisitions added £6.9 million in extra revenue across its network, including 11 via its Belvoir business, 13 by Northwood and two by Newton Fallowell.
Belvoir says the contraction in the lettings industry is based on the number of letting agents selling up portfolios over the past year being ‘far greater than in previous years’.
“This reflects a contraction in the number of agents in the sector not only amongst the smaller but also many of the larger independent agents, as the impact of the number of landlords selling their properties due to a less favourable tax regime [as] the increased regulation on lettings agents takes effect,” the company says.
Belvoir also reveals it has 83 franchisees who are ‘actively searching for a suitable match within their territory’.
“The Assisted Acquisitions programme, now in its sixth year, has gone from strength to strength and continues to grow,” says Belvoir CEO Dorian Gonsalves (left).
“Since 2014 we have provided both commercial and financial support to 70 of our franchise owners, many of whom have doubled the size of their business overnight.”