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Posted:09-July-2014

UK property agency franchise owners flourish despite economic downturn

Throughout the recent economic decline, the property market saw a dip in house prices and sales. However, Martin & Co franchise owners have continuously defied market conditions and taken market share, developed their businesses and increased profits. Their hard work throughout the decline is now paying off as they are able to take advantage of the booming property market and the growing buy-to-let market.

Martin & Co is the only UK property agency franchise that offers a combined lettings and estate agency business with UK-wide recognition. With a network of just under 200 franchise offices, they are the largest property agency franchise business in the UK.

With strong high street and online presence, the secret of franchise owner’s success is that they can provide local property knowledge whilst being backed by a national brand. Martin & Co has been recognised for its award-winning service by its clients winning Gold for Best Large Letting Chain at the ESTAS (Estate and Letting Agent Awards) in 2009 & 2012, as well as Silver in 2010, 2011 & 2013 and most recently, Bronze in 2014.

The market began to improve in July 2013 when Nationwide Building Society revealed that UK house prices recorded their biggest year-on-year increase for nearly three years. UK house prices have continued to rise and were 11.8% higher in June 2014 than June 2013. The rental market is also experiencing growth due to the rise in house prices and difficulties for first time buyers in getting on the property ladder. The rental market has been growing at around 8% per year, every year, for over ten years, however in the same period, Martin & Co has grown 20% per year.

On lettings income alone, on average Martin & Co’s franchise owners who are high street based turnover £245k in year three and can expect to build their business value to in excess of £380k in just 5 years. Since starting their business in 2008, Peter and Rani Grieve have successfully built their business and now, five years later, they are the proud owners of two businesses and a significant property portfolio.

“We would definitely buy the franchise again. Having fully established our Worcester franchise, head office offered us the opportunity to acquire the Gloucester franchise as a re-sale in early 2010. And now, after three years, this business too has grown significantly. Furthermore, because of strong profit growth, we were able to acquire a very well established and well run independent letting agency which we have successfully integrated into the core business this year,” explains franchise owner, Peter Grieve.

The Martin & Co franchise network always strive to offer the best customer service in the industry and are constantly smashing both their own records and industry records. In July last year, 89 of Martin & Co’s franchise owners exceeded the national average of Negotiator Ratio, which currently stands at 76%. Negotiator Ratio reviews the number of new properties to let that have been added to an agency’s letting portfolio and successfully let during a one month period. Martin & Co’s Dundee franchise owner, Susan Hume, exceeded the national average by achieving a whopping 500% Negotiator Ratio.

Letting agents and estate agents who are good can build up substantial businesses turning over several hundreds of thousands of pounds and with profit margins before tax of up to 40% relatively quickly (within a year or two). When they decide to move on, they will have a business that is an attractive asset, particularly if a large proportion of the income is from the management of tenanted properties as this represents a reliable monthly source of income.

Martin & Co operate in a market that is well established, growing and here to stay, and with the housing stock value rising by over £1.5 trillion in the last decade, the demand has never been higher so now is the ideal time to invest in a Martin & Co franchise.

Interested and want to know more about The Property Franchise Group?

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