Northwood
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Latest property news
2018 will see the lettings industry consolidate, predicts Belvoir
The UK’s largest franchise firm Belvoir says a rush of acquisitions by its franchisees of competitor companies both during 2017 and into the New Year suggest the lettings industry faces a wave of consolidation as the fees ban looms. Belvoir says its lawyers are currently processing a “robust pipeline” of competitor acquisitions by its franchisees in recent months. The company says these acquisitions will be completed during the first three months of the year and that the “appetite for securing portfolio acquisitions reflects the entrepreneurial spirit of our franchisees who are adapting to changes within the sector and seeing opportunity for growth as the sector consolidates,” says CEO Dorian Gonsalves. Belvoir also says it helped its franchisees buy up 23 competitors last year, adding 2,264 properties to its lettings business. This brings the total number of properties managed by Belvoir Group companies to over 58,000, and helped increase its network revenue by £3.3 million, exceeding the £3 million target set by its board for 2017, and raising its head office fee revenue by £350,000. Helping hand The high number of competitor acquisitions has also been boosted by Belvoir’s Assisted Acquisitions programme, which encourages existing franchisees to buy local firms, helped…
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Latest property news
UK’s largest franchise agency group to become leading mortgage broker
Belvoir is to roll out its recent-acquired mortgage broker business Brook Financial Services across its 300-strong branch network of four brands – Belvoir, Northwood, Goodchilds and Newton Fallowell – in a bid to become one of the high street’s larger agency mortgage brokers. The announcement, which will help reassure City investors following Belvoir’s recent failed attempt to merge with Martin & Co parent company The Property Franchise Group, reveals that the roll-out is beginning with its most sales-focussed brand, Newton Fallowell. It has 39 branches in Lincolnshire, Nottinghamshire, Leicestershire, Derbyshire, Rutland and Staffordshire and was itself bought by Belvoir in July 2015. Brook, which trades as the Mortgage Advice Bureau and is based in Barnsley at a business park (pictured, above), was bought by Belvoir for £2 million in July this year and its services are now available within 25 of the Newton Fallowell branches, including 17 new ones since Brook was acquired. This, coupled with more business from independent estate agents who use Brook’s services, helped the financial services firm write new business worth £570,000 over the past two months, putting it 40% ahead of its performance last year. “The roll out to the Newton Fallowell offices is underway…
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Latest property news
Belvoir funds ten more acquisitions by its Northwood franchisees of local rivals
Belvoir has taken a moment from its attempt to merge with rival Martin & Co to reveal that ten of its Northwood franchisees have acquired local rival businesses, adding 1,000 additional properties under management and £140,000 a year to Belvoir’s group revenues. Northwood was bought by Belvoir in June last year, adding 86 branches to the group’s total, which now stands at over 300. Belvoir says the uptick in Northwood franchisees acquiring rivals – which includes five in the past two months alone – has been prompted by Belvoir introducing its Assisted Acquisition programme to Northwood, half of whose franchisees have now signed up to join. In practical terms, this means Belvoir searches out local rivals ripe for acquisition and then helps the Northwood franchisees broker and fund the deals as well as providing legal, due diligence and business advice support. Northwood franchisees Belvoir says it usually agrees to fund up to 30% of the cost of the acquisition, which are “nearly always full business transfers and not tenders for the management of properties,” the company says. It also claims that Northwood has been growing fast over the past 18 months helped by the assisted acquisition programme but also organic…
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Agencies & People
Belvoir results reveal 19% revenue boost from Northwood purchase
Latest financial results from Belvoir, the UK’s largest franchise network, reveal that its recent acquisition of rival Northwood helped it boost group revenue by 19% during the first quarter of its financial year. Revenue from its franchise fees increased by 5% including an 8% rise in lettings fees but a drop in sales fees of 4% when compared to the same period last year. This, the company says, was caused mainly by the rush by investors and prime property owners to complete before last year’s Stamp Duty tax deadlines. Newton Fallowell This year-on-year reduction was more pronounce within its 31-branch East of England brand Newton Fallowell where the sales fall-off was 13%. But for investors, the galloping speed at which the Belvoir group is growing overall helped mitigate these sales reductions – Belvoir says its growth in sales was 33% as its rolls out sales across the UK. Revenue at Belvoir increased by £700,000 driven mainly by the Northwood acquisition although the franchising of six formerly corporate-owned offices has cost £200,000. “The Group has seen a healthy start to 201,” says Chairman and CEO Mike Goddard. “The Board has been working closely with franchisees providing the support they need to…
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Latest property news
Why did Northwood withdraw circular that used commonly-used Rightmove data?
Franchise network agent Northwood GB, which was acquired by rival Belvoir in June last year, has been reported to the Advertising Standards Authority (ASA) for making an unsubstantiated claim in a circular it distributed to clients, even though the information is widely available elsewhere. Northwood had stated within it: “Did you know that between Christmas Day and 1st working day in January last year Rightmove had a 195% increase in their visits to their website”. The complainant challenged whether this claim could be substantiated and, after the ASA contacted Northwood, was told the circular had been withdrawn and the matter was resolved informally. Links to the circular on the company’s Facebook page have also been taken down. “We told them to ensure in future, they held robust substantiation information for any claims made in their advertising,” the ASA said. Northwood’s reluctance to substantiate the claim is odd, given that the ‘195% increase’ statistic has been repeated in several local newspapers including the Hampshire Chronicle, and is therefore likely to have been based on a Rightmove press release. Also, Northwood is not the only agent in the UK to have repeated the ‘195% increase in visits’ claim. Hamptons International (see left)…
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Regional Reports
Salisbury, Northwood, Middlesex and Leamington Spa
Each month we visit three agents across the country to discover what is happening in their businesses and local markets. This month we meet members of The Guild of Professional Estate Agents in Salisbury, Northwood, Middlesex and Leamington Spa.
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