Why now is a great time to be a letting agent
Martin & Co - the UK’s largest and fastest-growing specialists in residential lettings, with 150 offices – has reported a continued strong growth in the number of franchisees joining the network with a bumper summer for new recruits.
Offices are scheduled to open from Brighton in the South to Paisley in Scotland with the target of 30 new offices due to launch before the end of the year, being exceeded.
Ian Wilson Managing Director of Martin & Co (UK) Ltd comments “so far this year the network has delivered a remarkable 52% increase in revenue compared to 2007. Nothing more clearly illustrates the strength of the lettings sector in general – and Martin & Co’s business proposition in particular.”
So much so Martin & Co’s latest campaign has just been launched nationwide to promote private renting as a real alternative to house purchase. The campaign highlights UK house prices follow a predictable cycle of rising prices followed by periods of decline.
“The plain fact is, house prices are dropping fast, and we think the evidence is that they’ve still got some way to go – anyone buying now will be looking at an almost immediate loss,” says Ian. Besides, he adds, any advantage to first-time buyers in terms of reduced prices is being more than outweighed by the fact that banks and building societies are demanding larger deposits – typically around 13%, according to the Council of Mortgage Lenders.
The net result of all this is that first time buyers are struggling to save for longer – only to face the possibility of moving into negative equity almost before the ink is dry on their contracts!
Fortunately, the way out of this nightmare scenario is an easy one, says Ian. “Demand for private rented accommodation is soaring, you can move into a new place for a fraction of the up-front costs of purchase. If you already own a property then you could let it out and find a place to rent for your own needs – perhaps to allow you to relocate or for extra room for a growing family. You could also experiment with a different style of property to see if you like it, without risking having to make a long term commitment”
In line with many industry experts, Martin & Co sees this trend as heralding a major structural shift in the way we think about property. The company points out that there is nothing sacrosanct about owning your own home – indeed, it was only as recently as 1971 that owner-occupation passed the 50% mark in Britain. Up until then, renting had always been the norm – as it still is in most parts of continental Europe, where people appreciate that there are far more important things to do with their money at some points in life than tie them up in bricks and mortar.
“Buying property is still a great long term investment. But it works best when you buy at the right price and have tenants pay the mortgage. Buying an over-inflated property for your own occupation can be a trap that it takes years to escape from” says Ian.
Martin & Co offer a great franchise opportunity that allows potential franchisees to start their own Letting Agents.