Belvoir pushes into sales with a year-long pilot

Belvoir Lettings is launching into the residential sales market.

The franchise chain has announced a sales pilot, with a total of 14 offices participating in a 12-month nationwide trial.

Ten of the offices are franchisee businesses and the remaining four are company-owed and include three Redwoods branches.

In addition, two offices have already got their estate agency businesses up and running.

All of the offices involved in estate agency will have their branding changed so that the ‘lettings specialist’ wording is removed.

There has been enthusiasm among the 155 Belvoir franchisees for the project, with 70% supporting the sales pilot.

Belvoir CEO Dorian Gonsalves said: “It will be a traditional sales model – high street, not online – charging traditional fees.

“At first, we see ourselves offering a sales service for landlords, but no doubt as our board presence increases, we will be attracting other sellers.”

The launch into sales follows the move a year ago by lettings competitor Martin & Co also to go into sales – apparently with success.

In early 2012, as it launched on to the AIM stock market, Belvoir said it would not consider going into sales. However, later on last year, tellingly, its founder and now chairman Mike Goddard said it was a case of “never say never”.

The launch comes after Belvoir has concentrated purely on lettings for its 19-year existence.

Gonsalves said: “Most sales agents have a lettings business as a bolt-on service to their primary business but Belvoir will operate the other way round – as a lettings specialist that also offers a property sales service.

“We are constantly seeking new opportunities: 2013 will be a record year for Belvoir and we have an exciting and ambitious strategy for growth in the coming years.

“Another key reason for deciding to participate in the trial is to create new acquisition opportunities for sales and lettings businesses. We have already acquired a number of lettings businesses this year and intend to continue assisting franchise owners to acquire their competitors at the same time as developing our network of company owned outlets.

“The sales pilot is obviously a very exciting new initiative for Belvoir, and we look forward to reporting further developments as the trial gets under way.”

The announcement of the sales initiative came as Belvoir – which aims to have 200 franchises by 2016 – announced strong results for the first six months of this year, including a record July.

Group revenues were up 35% to £2.5m although operating profits dipped 11% to £0.78m because of acquisition costs relating to its purchase of the Redwoods branches in Hampshire. A total of 45 franchisees each had revenues of over £100,000 during the first half of this year.

Franchisees pay an initial £22,500 to join Belvoir and then 12% of monthly turnover.