A lettings agency in one of the most competitive markets in Britain says it’s enjoyed a record year winning landlords from “lax” rivals.
Clan Gordon says it “focuses on high quality homes” in central Edinburgh and has seen its properties under management exceed 500, growing by three per week on average - with 152 additional homes on its books in the latest 12 months to December.
The growth, it says, has largely been the result of switches from other letting agents where landlords were either unhappy with the level of service they were receiving or “sensed a lax approach to new regulations governing the sector.”
Growth has also been driven by properties taken over from agents forced to exit the sector after being unable to meet the requirements of Scotland’s new Letting Agent Code of Practice or, in one case, being forced into liquidation.
Agency founder Jonathan Gordon says: “Edinburgh continues to see demand for long-term rental increasing while supply simply can’t keep up.
“While some landlords and agents may look to maximise short-term gain, a healthy relationship with the tenants ... can produce a better outcome. It creates fewer issues, cuts unnecessary turnover and typically results in a greater long-term financial return for the landlord.”
The latest Letting Agent Code of Practice and Letting Agent Registration introduced by the Scottish Government is seeking to increase professionalism in the sector.
It means both landlords and tenants can challenge poor practice and enforce it through a tribunal. Agents must now ensure all owners and managers are trained and have a qualification at at the equivalent of Scottish Credit and Qualifications Framework (SCQF) level 6 or above.
Clan Gordon say it took over 12 properties from CMC after it went into liquidation; a further 20 properties switched from an English agent unwilling to join the new Letting Agent Register. And 50 transferred from an Edinburgh agent also unable to meet the new requirements, claims Clan Gordon.
A further 70 are the result of switches from other agents, or from new landlords.
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Well done Clan Gordon, Hard work pays off
There will be a great culling of English LA who are not up to task as far as existing regulations are concerned let alone being compliant with the new qualification regulatory requirements.
Good news for those fully compliant LA who will be able to pick up business from LA no longer capable of surviving the new regulations.
There will be LA put out of business which should leave all the good and compliant ones to pick the business they are due.
This business should have been with them in the first place.
But with no previous level playing field they were being unfairly competed against.
This state of affairs won't be the case for good LA.
For good LA this will bring additional business opportunities which is their due for being compliant when others weren't.
This should give confidence to compliant LA that they may further invest in their businesses on the basis that there will be fewer of them around as the rogues are put out of business.
Just a shame we don't have similar circumstances for LL which as a LL I would welcome as I face unfair competition from rogue LL.
But we are getting there with regulation.
Govt first dealing with EA and LA.
I'm sure LL will be next on the list and about time too when it eventually occurs.
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