Agencies & People
News covering the businesses, activities, people and personalities in estate agency and letting agency and wider residential property industry.
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High street agents under threat from online firms
The online estate agent market is forecast to grow to 10 per cent of the overall sector by 2220, despite representing less than 2 per cent of the market today. At least, that is the bold prediction put forward by Will Clark (pictured), Managing Director at SellMyHome.co.uk, who firmly believes that many high street estate agents will need to consider changing their fee structures in order to remain competitive. He points to the fact that the rise of online estate agents offering to sell properties for as little as a few hundred pounds has significantly increased competition on the high street, making it harder for high street estate agents to justify what he describes as an “archaic percentage fee structure.” “It all comes down to pricing”, he said. “When you consider what high street estate agents charge for the services that they provide, it is mind-blowing.” The online estate agent is planning to raise £10 million over the next 12 to 18 months with a view to expanding the business and increasing its own market share. “So far we have used internal funding to give us an injection of cash to support the business. But while we do have aggressive…
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Hunters takes aim at London float
Hunters is preparing to float on the AIM market of the London Stock Exchange to take advantage of the improving residential property market. The large estate agency firms, which has over 150 branches, the vast majority of which are franchised, has already appointed Numis Securities as Nominated Adviser and Broker with a view to start trading on AIM by the end of next week. Kevin Hollinrake (left), the Chairman of Hunters, who was recently elected as a Conservative MP, said, “Hunters is a highly ambitious company. Our success to date has been born out of our focus on providing our customers with an exceptional service combined with local market knowledge. The Group is excited about its next chapter as a public company. This status will help to further enhance the Hunters brand and provide access to capital to accelerate business growth.” Hunters last week welcomed Norfolk-based Kudos Residential to its fast growing network estate agents. All seven of Kudos Residential’s branches, located across the county, including the main towns and cities of Norwich and Great Yarmouth, have all been rebranded. Glynis Frew (right), Managing Director of Hunters Property Group, said, “This is another exciting milestone for Hunters. As we continue…
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Estate agents ‘failing to cater for disabled’
Many disabled people are being prevented from moving home and living independently because estate agents fail to understand their situation or provide important information about accessible property, it has been claimed. Property website TheHouseShop.com, which was previously known as the Little House Company, but rebranded after switching from a private property-only sales portal to one that now also incorporates estate agency listings, has accused agents of being unmindful of the practical issues around disabled living, leaving many people, such as those who are wheelchair-users, ‘struggling to find suitable property.’ Nick Marr (left) of The House Shop believes that estate agents are losing business to the private sales market because they typically lack the specialist or niche marketing capability to properly advertise accessible homes. He said, “Disabled homeowners are increasingly turning to direct sales or peer-to-peer selling to market their homes after failing to find suitable buyers through estate agents. Over the years we have had a number of disabled homeowners approach us after being advised by their agent to rip out or downplay accessible improvements so that their property appeals to the broadest possible market. For homeowners who have spent, in some cases, tens of thousands of pounds improving and…
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Don’t let property investments go to pot
Letting agents and property managers are being reminded to remain attentive when viewing or inspecting rental properties in order to weed out tenants that may be growing cannabis in properties belong to their clients, after a new report revealed that the number of cannabis seizures in rented homes soared by up to 195 per cent in 2014. New analysis from landlord insurer, Direct Line for Business, reveals that police seized 456,911 plants across the UK last year, reflecting a sharp rise in home-based cannabis cultivation. Police raids resulted in no fewer than 59,002 plants being seized in London, which was more than any other part of the country. Birmingham had the second worst record with West Midlands police confiscating 52,218 plants, while 33,547 plants were removed from homes in Greater Manchester. Although the overall volume of seizures fell by 10 per cent between 2013 and 2014, a third of police forces have seen an increase over the year, of 40 per cent on average. West Mercia in the Midlands leads the pack with a 195 per cent increase in confiscations, followed by Cambridgeshire at 110 per cent and then Wiltshire at 75 per cent. Direct Line for Business is now…
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Bad week for online agent
Online estate agent eMoov is under pressure for making unsubstantiated and misleading claims to home sellers over fees and asking prices, while their lodged complaint with the Competition and Markets Authority (CMA) against OnTheMarket (OTM) will not be followed up by the regulator. The CMA took over many of the functions of the Competition Commission and the Office of Fair Trading last year. Having investigated claims made by eMoov in an advert that its sales performance last year resulted in 99 per cent of the asking price being achieved for its clients compared to the national average of 96 per cent, the Advertising Standards Authority (ASA) concluded that that the statements were unsubstantiated. ASA said that sales data only covered the period of January to September 2014, while no comparable information relating to asking prices achieved by traditional estate agents in London was provided. The online estate agent also claimed that its customers had saved more than £11 million in fees by using its services because its business model depended on it selling a higher proportion of its inventory. But once again, this was panned by the ASA because it was based on the average fee its customers paid instead…
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3 weeks left to enter The Negotiator Awards
Property agents battle to win the UK’s top residential property awards! There’s just three weeks to go before the closing date for The Negotiator Awards 2015. Join the UK’s premier residential agency awards – but here’s a reminder to all agents who haven’t completed their entries – we need them very soon! Download the entry form and guidance by CLICKING HERE and learn more about the awards at www.thenegotiatorawards.co.uk Remember – The Negotiator Awards are free to enter. We’re confident that this year will be even better than last and we’re already well into the planning for the event, to make sure that The Negotiator Awards retains its position as ‘the one to win.’ It is very easy to enter The Negotiator Awards, you simply complete a short form and prepare a supporting statement telling the judges why your company deserves an award – full details and advice on preparing your submission are on our special website. That’s it! There is no formality, no risk, no cost! The Negotiator Awards is absolutely free to enter – it is the only property awards event that carries no entry fee – another scheme charges £230 per office for the first category entered,…
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Estate agents face last orders as council steps in
An estate agency operating out of a 200-year old pub has been ordered by Westminster Council to vacate the premises this month or face formal action. The freeholder of The Star pub in St John’s Wood, West End Investments, decided to close the 200-year old pub earlier this year after acquiring the business in 2014, and let the premises to Champion Estates, sales and letting agents, in March after being refused planning consent by the local authority to convert the property into luxury flats. Addressing the press at the time, Gary Champion, Director of Champion Estates, said, “I’ve had people coming in asking for a beer and going away disappointed. It was a business, not a public service. We’re entitled to make a living like everyone else.” However, the decision to close the pub and replace it with an estate agency sparked outrage among many local residents and drinkers, which included music singers Sir Paul McCartney (left) and Liam Gallagher (below), especially as Westminster Council had listed the pub an Asset of Community Value. But the preservation order issued by the Council was described as useless by Tom Stainer, of the Campaign for Real Ale, who said, “This is just the…
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Help for letting agents to stay on top of immigration checks
Letting industry suppliers are already adjusting to the national rollout of immigration checks, announced in last week’s Queen’s Speech, to ensure that letting agents comply fully with the new measures. Let Alliance, a specialist tenancy reference and rent guarantee provider to the UK letting agency sector, has announced that it will be extending its Ultimate Global tenancy referencing service nationwide, following the Government’s decision to press ahead with a national rollout of immigration checks. The Ultimate Global tenancy reference takes full account of the Immigration Act, and includes Right to Rent certification; ID validation; follow-up checks for time-limited certification; Home Office checks; and residency confirmation – all done on a documented audit trail. The service was successfully trialled in the West Midlands, which is where the pilot scheme of immigration checks by landlords and agents was introducedlast December, but will soon be accessible by agents across the UK. Importantly, Let Alliance will “take full accountability” for the full referencing process, protecting all their customers against any penalty that may be applied by the Home Office if the tenant has completed the ‘Ultimate Global’ referencing process and met their criteria, according to Andy Halstead (left), CEO of Let Alliance. He said,…
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Zoopla loses nearly a quarter of its agents
Despite a significant increase in web traffic, a growing number of estate agents are cancelling their subscriptions to Zoopla to join rival site OnTheMarket.com (OTM). Shares in Zoopla Property Group (ZPG) dropped last week, after the firm reported that the number of estate agents listing their properties for sale and to let on the Zoopla website had dropped by 23 per cent over the past 12 months, largely due to the recent launch of OnTheMarket.com (OTM) which continues to have an adverse impact on its business. OTM, solely owned by the agents that list on the website, with more than 5,000 estate agency offices now signed up, has had a dramatic early impact on the market with its ‘one other portal’ rule requiring their member agents to stop advertising on either Rightmove or Zoopla, with the vast majority of agents opting to drop Zoopla. Ian Springett (left), Chief Executive of OTM, said, “Since our launch four months ago OnTheMarket.com has already taken almost one quarter of the estate and letting agent members from Zoopla Property Group. Less than 10 per cent of OnTheMarket.com’s member firms are using Zoopla as their other portal.” “In addition, OnTheMarket.com has already overtaken Zoopla in…
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Hunters and Belvoir expanding
Hunters, one of the largest independent networks of sales and lettings agents in the UK, has snapped up Country Properties adding another 23 franchised branches to its set-up. Sales and lettings agents Country Properties, founded in 1974 in Hitchin, Hertfordshire, has developed into an established franchised operation, with strongholds in Hertfordshire, Bedfordshire and Cambridgeshire. Managing Director of Hunters, Glynis Frew (left), commented, “We are delighted to add such a reputable and well established group of branches to the Hunters network. The two companies share the same set of values and are united in our commitment to the franchise model that we feel produces higher levels of customer service and return.” The acquisition of Country Properties will enable Hunters to expand their presence and reach into new areas as well as welcome a group of industry accredited branches with professional franchise partners to their network. Glynis added, “Our franchisees are passionately committed to the success of their own businesses and will work hard to ensure they deliver what today’s customer wants. Local expertise, knowledge and professionalism to help people get to where they need to be – that is our motto.” The 23 Country Properties operations will continue to be managed…
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