Property consultancy Vail Williams has reported its best ever year, with increased revenues of £18.3 million, up 5%.

The results included the highest grossing single quarter since 1988 when the firm was founded.

‘People managers’

An internal reorganisation of how the firm’s 175 staff are managed played a part in the financial success, the firm says.

Matthew Samuel-Camps, Managing Partner, says: “We increased our team numbers, productivity improved, we did a lot more multi-disciplinary work and we continued to serve high-quality clients across a range of sectors.”

Nobody comes into this profession with the sole desire to manage staff.”

Samuel-Camps says a key contributor to success was introducing dedicated people managers into the business.

This move was the first phase of ‘decoupling’ people management from operational heads.

“Nobody comes into this profession with the sole desire to manage staff, so we have enabled them to get on with their jobs without distraction.

Specialist

“People are our most valuable asset and every time we put, say, a specialist surveyor or planner in charge of something else it is a compromise,” he says.

“We have a whole new learning and development philosophy being instilled into the business. We have expanded our training budget and are really focusing hard on training, personal development and inculcating expertise and experience throughout the business.”

New office

Vail Williams employs 175 people, of which more than 50 are partners, based across its 12 offices in the Midlands and south of England.

The firm recently opened a new office in Oxford in an extension of its Thames Valley region presence.

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Safeagent, the UK’s largest not-for-profit accreditation scheme for lettings and management agents, has appointed John Midgley as Chair of its board of directors.

Midgley (main picture) has a wealth of experience in the private rented sector (PRS) and has been a member of the Safeagent board since 2014.

OUTGOING CHAIR

He replaces outgoing Chair, Sheila Drew Smith, who has retired.

Midgley himself retired from Touchstone in 2017, a company he joined as a regional surveyor in 1996. Along with colleagues he went on to acquire the business, becoming managing director and growing the business from 19 to 300 staff.

Isobel Thomson, CEO, Safeagent

During his tenure Touchstone became the country’s largest PRS property manager acting for a wide range of corporate and individual investors in the PRS.

Isobel Thomson, Chief Executive of Safeagent, says: “We are delighted that John has agreed to become Chair.

“He takes over at a pivotal time for Safeagent and the PRS with the Renters (Reform) Bill and now short-term lets legislation potentially coming onto the statute books.”

COMMITTED

She adds: “He is committed to ensuring that all involved in the rental process – tenants, landlords and agents – work together for the benefit of all.”

Midgley says: “I am thrilled to have the opportunity to take the role of Chair at such an exciting time for Safeagent, letting agents and the PRS in general.

“I welcome the opportunity to lead the board in making sure that Safeagent continues to focus on promoting the provision of excellent and ethical services across our industry and providing innovative and practical services to support those who operate with care and professionalism on the front line.”

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Declining transaction volumes, reduced revenue, and lower profitability driven by interest rate changes and mortgage volatility took the shine off Savills results this morning.

Revenue from residential transactions in the UK decreased by 18% compared to the previous year, totalling £171 million, down from £208.3 million in 2022.

HOME SALES

Revenue from home sales decreased by 23%, primarily due to a 23% reduction in the number of exchanges, which dropped to 4,735 from 6,124 in 2022.

Meanwhile, there was a 4% decrease in the average sales value, falling to £1.61 million from £1.68 million in 2022.

In London, the average lot size transacted by Savills decreased by 3% to £2.23 million, while in regional areas, it decreased by 8% to £1.27 million.

Both regional UK markets and central London experienced significant declines in volumes, in line with expectations.

Revenue from the sale of new homes decreased by 24% year-on-year, primarily due to a 27% decrease in the number of exchanges.

Underlying profit decreased by 45% to £19.4 million compared to £35.1 million in 2022, reflecting the reduction in revenue. This resulted in an underlying profit margin of 11.4%, down from 16.9% in 2022.

GROUP REVENUE

Group revenue dropped by 3% to £2.2 billion down from £2.3 billion the year before but revenues grew 7% to £1.5 billion as consultancy and property management stood firm, growing revenue by 4% and 11% respectively.

Global market conditions remained ‘extremely subdued for longer than anticipated.”

Savills said the group’s transactional business experienced a 17% drop in revenue during the year as global market conditions remained ‘extremely subdued for longer than anticipated’ at the start of 2023.

Mark Ridley (main picture), Group Chief Executive of Savills plc, said: “Savills resilient performance in 2023 highlights the diversity and strength of our global business.

“In the context of extremely challenging real estate markets, which saw the lowest levels of transaction volumes for a decade, our less transactional businesses have provided a solid platform for the Group with a resilient and growing earnings stream.”

CONDITIONS REMAIN UNCERTAIN

And he adds: “Current economic and geopolitical conditions remain uncertain and although we expect this to continue for some time, most markets appear to be past the moment of peak uncertainty.

“There are some early signs of underlying market improvements, which should set the course for a broader recovery during the second half of the year and into 2025.”

Stacey Cartwright, Savills

Stacey Cartwright, Savills Chair, says: “Throughout the year, real estate markets across the globe were challenged by significantly increased interest rates, geopolitical events and, on a more asset-specific level, uncertainties over the future role of offices and the valuation of existing stock in the era of sustainability.

“These factors, together with certain location-specific issues, significantly reduced capital transaction volumes in global markets to their lowest levels for a decade.

“In addition, economic uncertainty led to delays in corporate occupiers committing to new leasing activity in many markets.”

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Specialist lettings agency Draker is expanding after opening its third office in West London.

Draker’s new office in Notting Hill

The new branch in Notting Hill builds on the firm’s presence in the area after a satellite office was set up there four years ago.

More than 300 clients were registered to let their properties within the first 10 months of the satellite being open, Draker says.

Let for free

Now, with the new office in Ladbroke Road, it is offering clients a ‘Let For Free’, with the first year’s introduction fees free of charge, which the company says will save an average of £6,000 each.

The wait is over now we have found this office – in the perfect location for us.”

Tim Hassell, MD at Draker (main picture), says: “The wait is over now we have found this office – in the perfect location for us, with the right level of visibility combined with high footfall and a work space with soul.”

Mo Kanso, Manager, Draker Notting Hill Office

Mo Kanso, Associate Director and Manager of the new Notting Hill office, says: “Having worked at Draker for seven years and with a focus on Notting Hill since the start of 2020, it’s wonderful to now be based in the ideal office location, with a robust portfolio of clients already in place.”

First office

Draker’s first office opened in Sloane Square in 2010, and in 2017 was followed by Fulham Broadway.

Since opening in Sloane Square with just three members of staff, the office now has an experienced team of 20 who collectively manage over 460 tenancies every year.

While the Fulham Broadway team has expanded the overall headcount to 25, letting over 300 tenancies a year.

Average rent of £900

Over the last 13 years, Draker has agreed in excess of 7,000 tenancies, and currently lets over 750 properties annually, with an average weekly rental of £900.

Overall, Draker looks after a combined total of 3,749 landlords, with 54% UK tenants and 46% from overseas.

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‘It’s definitely not happening here’ was the message from a leading property sector recruiter after figures showed a sharp drop in job vacancies.

Anthony Hesse, MD, Property Personnel

Anthony Hesse, MD of leading recruitment firm Property Personnel, says there is a 75% increase in jobs registered with his firm this year.

And he also says that as the housing market picked up since January so have the number of positions being advertised.

Fastest rate

The figures from KPMG and the Recruitment and Employment Confederation (REC) covering all industries, show that vacancies are falling at the fastest rate in three years.

Employers are delaying or freezing their hiring amid the economic uncertainty, the Daily Telegraph reports.

The number of temporary job vacancies also dropped slightly for the first time since August 2020.

The figures are definitely not being mirrored in the property sector.”

But Hesse says: “The figures are definitely not being mirrored in the property sector.”

As members of the REC, Property Personnel sends its figures every four weeks to help them create a monthly ‘UK Report on Jobs’.

75% up

“I’ve just taken a look at the number of new jobs registered with us so far in Q1 2024 compared with the same period for 2023, and we are about 75% up this year so far!”, Hesse says.

“This is almost certainly a knock-on effect following the significant increase in activity levels in the residential property market since the start of the year.”

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An estate agent who became distraught following the death of his wife and business partner from cancer took his own life using her medication, an inquest has revealed.

40-year-old Adam Thompson died at his home in Mulbarton near Norwich on October 10^th last year, just three months after his partner Lucy Thompson passed away after a long battle with cancer, aged 44.

The pair had run local estate agency called Reality but Lucy stepped down from running the firm she had founded after being diagnosed with cancer to concentrate on other things including fund raising.

Although the pair had been in a relationship for many years, they married in July 2019 after she was given the all-clear following treatment, but the cancer returned.

An inquest into the death of Adam Thompson had initially revealed that he died from opioid toxicity but it has also been reported that he killed himself using medicine left over after her death.

Loving, kind

The Eastern Daily Press reports that a statement released to the inquest by his family described him as a ‘loving, kind, and caring; a loving, devoted father, son, brother, and husband. He was very much loved by all, and he always had time for everyone and had many, many friends’.

It has also been reported that Adam “didn’t know how to go on” after Lucy’s death, but the death of a close family member and his dog had contributed to his decision to end his life.

Picture credit: Facebook

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The Property Finance Group’s (TPFG) merger with Belvoir last week has created an industry behemoth. With its 600 plus branches TPFG was already arguably the second largest estate and letting agency network behind Connells.

The merger with Belvoir gives TPFG more than 930 franchise locations, around 152,000 managed properties and an average 28,000 annual property sales and with a burgeoning financial services arm to boot.

PERSPECTIVE

To put that into perspective, City analysts Singer Capital Markets reckons the combined group trading as TPFG has a 4.7% share of the UK lettings market and a 3.5% share of the UK sales market with projected revenues of £61.4 / £72.6 million this year and next of which nearly half (47%) is recurring.

It’s perhaps a wonder it didn’t happen any sooner.

Gareth Samples: TPFG, Chief Executive

And Gareth Samples, TPFG Chief Executive, tells The Neg that it very nearly did.

 “I joined in 2020 but the last test was 2017 and that didn’t work out,” he says. “But in my time here every investor has said ‘when are you and Belvoir going to come together’.

“There was already a sort of inevitability that the two of us were going to come together. “The timing was good last year – we had an initial meeting and talked about what had stopped it in the past, the benefits of doing it. The timing and the stars simply aligned. It was the right thing to do, the timing was good.”

Both groups had previously felt undervalued from a stock market point of view and the hope is that the merger takes the operation to a whole new level.

“This takes us to a different level and more attractive to larger shareholders which in turn should drive share price and market cap,” says Samples.

“From a holistic perspective it makes sense. Our aim is to make franchisees more profitable – if we make them more profitable then we will also benefit.

“We are now able to leverage the scale we have and deliver that back to franchisees.”

NEW STRUCTURE

Under the new structure Belvoir Group’s former Chief Executive Dorian Gonsalves and fomer Chief Financial Officer Louise George will remain in place for the next year to ensure a smooth transition.

Dorian Gonsalves

“Dorian and Louise are going to stay on for 12 months to help with the integration and the relationship we have with those two is top draw,” he exclaims. “We wanted to make that as smooth as possible over the next 12 months.”

That transition began in earnest last week with Samples and the TPFG senior team meeting at Belvoir’s Grantham HQ for a major Q&A session to iron out any anxieties “as with any merger there’s always nervousness when you are taken over”.

Louise George

“We have a really talented group of people both in Belvoir and TPFG that are motivated to do what is necessary to drive those opportunities for both franchisee and franchisor – it’s a really exciting start to the journey,” says Samples.

“Combined we’ll have around 900 estate agency/letting agency offices, we’ve got 320 financial advisers that operate within the group which puts us number two behind Connells in terms of footprint size.”

FINANCIAL SERVICES

Indeed, while TPFG has a financial services distribution agreement with LSL which has another three years to run and may even continue Belvoir has a more substantial mortgage business as the largest appointed representative of national brokerage Mortgage Advice Bureau.

That business isn’t franchised so TPFG can directly influence its growth and there could be significant potential as the mortgage market starts to improve.

But it’s not going to be an easy journey.

“It’s always been hard to persuade franchisees to adopt financial services,” says Samples. It’s an opportunity but it’s a tough gig.”

CONSOLIDATION

“We don’t own the branches – where there is a crossover they have always competed, says Samples. “They competed against each other yesterday and they will compete against each other tomorrow.

“We operate over a dozen brands and we won’t merge any brands or offices.”

With TPFG expected to announce its latest results to the City in less than three weeks on March 23 all eyes will be focussed on whether this new agency behemoth can continue its trailblazing run of success. Watch this space.

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Carter Jonas has launched a branch in South London’s Southfields neighbourhood – its ninth site in the capital – that will specialise in residential sales, lettings and new homes.

Charlie Streatfeild (main picture), who has over 20 years of experience in the property industry, has joined Carter Jonas as the office’s Head of Sales and will lead the six-strong team.

LONDON MARKETS

He was previously at Marsh & Parsons, overseeing its sales departments in Battersea and the wider South West London markets.

Streatfeild is well-established in the area and is known for his exceptional customer service andcomprehensive knowledge of the local markets.

Lisa Simon, Carter Jonas

Victoria Boyson, who has been with Carter Jonas for eight years, will lead the lettings business and transfers from its Marylebone team.

Lisa Simon, the firm’s Head of Residential, says: “We are thrilled to expand our presence in London with the opening of our new office in Southfields.

COMMITTED

“Charlie and Victoria are committed to delivering the very best advice and service to clients, and the addition of our new team complements the expertise of our professionals based in Wandsworth and sites across the capital.”

Streatfeild adds: “Southfields is a thriving destination, with the benefits of a village-like atmosphere coupled with Zone 3 living. Having worked in the market for many years, I believe that this is the perfect location for us to grow.”

Carter Jonas has over 160 years of experience in the property industry and has recently been appointed as Christie’s International Real Estate‘s UK Affiliate.

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