The future's bright, the future's orange, the future's £1
Hot on the heel of Stelios 'EasyJet' Haji-Ioannou launching his claim to the property market, next up is Steve Smith, the founder of discount chain Poundland.
Both entrepreneurs are aiming to make buying and renting property a cheaper experience by going for the Achilles' heel that is agency fees. While easyProperty.com seems to be an online-only operation, EstatesDirect is a hybrid project that fuses online estate agency with regional expertise.
'Save thousands in fees' they are shouting - there's even a fixed tenant-find service from Steve Smith, which will search for tenants for a nine month period and check their credentials, produce a tenancy agreement, give legal advice, and collect the first month's rent and deposit.
But let's stop a minute. Is this what people want in a rising market A home is usually someone's biggest asset, whether they are a landlord or an owner-occupier. With such a demand for property everyone will want to maximise the value of their asset - something that is normally achieved with considered marketing and finely-honed negotiating expertise. Would Poundland's 'stack 'em high, sell 'em cheap' ethos or easyJet's somewhat lacklustre customer service and no-frills approach rub off onto their property ventures And there's the trust issue - many agents have been practicing for decades and know the property market inside out - experience really does count.
There's almost a guarantee that owners of prestigious homes would shun online or untested 'cross-over' agents, preferring to match the calibre of their property with a suitable agent partner. Then there's the owners of mid-range properties. Many will have lofty aspirations and would prefer not to market with something that felt 'budget' - even if it meant 'punching above their weight' with an agent with higher fees. After all, attracting a serious tenant or buyer with honest spending intentions is important in today's market.
So who does that leave for the new pretenders in agency Perhaps they're relying on volume - droves of people lured by a potential financial saving and complemented by a high turnover of low-end value homes. It's worth noting that EstatesDirect has been operating since 2012 and takes a somewhat budget-airline approach to its business model. There are lots of bolt on extras adding to the cost, as well as asking landlords and vendors to erect their own boards and to conduct their own viewings. The details of easyProperty are so vague that it's hard to make a fair appraisal but given the plethora of other online agencies and portals already live or getting ready to launch, we wish both ventures luck - they'll need it!
* Simon Duce is managing director of the ARPM Group, who provides national outsourced lettings and property management services
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