Tightening regulation in the residential lettings market is certainly having an effect. I am not sure it is the effect that was being sought, but it is certainly having a considerable impact.
I have detailed before in my blog ESTATE AGENCY REGULATOR LAUNCHES NEW ENFORCEMENT TOOLKIT FOR TRADING STANDARDS that the level of compliance needed to competently run a lettings business is very high. This leaves very little time to promote and move the business forward so something typically has to give.
Unfortunately for a lot of independent Agents the risk that is now associated with non-compliance is too high.
The net result that we are seeing at the moment is a greatly increased level of acquisition opportunities. Independent businesses are asking if we would like to buy them for our ever growing network at quite a rate, particularly those who are looking to sell their business to someone like Belvoir (who operate with a family feel and enjoy a close relationship with our customers rather than a cold corporate)
To be honest I didn’t consider this. The logic of it makes complete sense, but from our point of view we never release portfolios, we only acquire them. It came as quite a shock just how quickly businesses started to sell, however as soon as it started, we grasped it immediately.
The good news is actually twofold. Firstly, the business owner who is trying to escape what they perceive as onerous new regulation has spent many years building a portfolio for which they are about to receive a capital sum.
Secondly, our Franchise Owners have the opportunity to benefit from all the associated benefits of an increase to their business. For instance, access to new Landlords and therefore new referrals.
They also receive a portfolio of properties which after a three year period (typically) becomes a further unencumbered asset that they solely own.
In other words, if we buy a £100,000 business and provide finance over three years, the Franchise Owner receives the benefits for those three years and then has ownership of a £100,000 asset after that.
This is such a positive effect for our Franchise Owners that we even start to actively search for an acquisition, if asked to do so, as soon as a new Franchise Owner joins our business.
Martin Bunney who heads up our Acquisition team explains the opportunity in more detail here.
Whether you are looking to enter the world of residential lettings and invest in a Belvoir Franchise or exit the world of lettings by selling your portfolio, please contact our Recruitment and Acquisition team.
Even if you are looking for the support that we can offer but are not ready to leave your business just yet, call us. We will help you to join our network and start to help you drive your business forward.
We are extremely excited to discuss all the options for your future with you.
Belvoir is an award-winning estate and lettings agency with 160 successful offices around the U.K. If you would like to talk about being our next success story, please call us on 01476 570000 or email us on firstname.lastname@example.org
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