Belvoir says a surge in business for its Assisted Acquisition Programme is because of the challenging market and upcoming fees ban - and it warns that many independent agents may be set to close over the coming two years.
“So far this year Belvoir has already completed on 21 acquisitions, which have added 3,585 managed properties to the national portfolio. In addition we have a pipeline of six acquisitions that are already with lawyers plus a further 15 opportunities that are currently under consideration” says Belvoir chief executive Dorian Gonsalves.
This represents an increase of 255 per cent in acquisition turnover from £2.1m in the year to September 2017 up to £5.3m to September 2018 “and we expect this figure to grow considerably by the end of the year” he adds.
Belvoir’s acquisitions to date have ranged in value from £25,000 to £1.5m.
Gonsalves says his company’s AAP is unique because it is highly structured and operates entirely in-house.
“Our decision to not use outsourcing ensures that each acquisition remains totally within our control, and the process is robust enough to mitigate risks. We go to great lengths to prove the viability of each acquisition, and negotiate on the franchisee’s behalf with the aim of enabling our franchisees to be debt-free within five years” he adds.
And he warns that the market will continue to consolidate for at least a further two years “and this will result in the closure of many independent agencies.”