LETTINGSnews


FRANCHISING Belvoir set to float on AIM


Belvoir blasted into the New Year with its announcement, on 9 January, of its intention to float on the Alternative Investment Market in February in a bid to raise £6-8million to fuel its growth strategy. Belvoir Founder and Chairman Mike Goddard, said, “The sales market is depressed and will continue to be for a significant period of time. The lettings market is poised for further growth. There has been a massive increase in lettings agents and I feel that it is now peaking and there’ll be major consolidation.” The business, always


profitable, last year generated £1.3m in pre-tax profit on turnover of £2.4m – down on the £1.4m pre-tax profit reported for 2010 but up on the £1.2m reported for 2009.


BLOCK MANAGEMENT


ARMA appoints new CEO


ARMA – The Association of Residential Managing Agents has appointed Michelle Banks


as its new Chief Executive. Current CEO David Hewett will be retiring after 15 years.


Mike, who founded the business with his wife


Stephanie in 1995, added, “Stephanie and I spent many years building this substantial business, and further growth requires investment and the ability to gear on that and to look to the future. We’re


looking at our next era of


growth.” Mike will retain 65 per cent of the business for at least two years, while Stephanie plans to sell her shareholding. The franchise offers


exclusive areas to investors in return for 12 per cent commission on the gross turnover of each office. “The formula works,” said Mike. “Moving to AIM will raise our profile and help us tap in to the huge growth in the lettings market. We’re a cash- generating business and have every intention of becoming a yield stock, paying out excellent dividends.” Some of the capital raised


Mike Goddard


RESEARCH More reluctant landlords


Latest research from ARLA indicates that the number of reluctant landlords is rising as


people struggle to sell their homes. During Q3 2011, nearly half


(47 per cent) of ARLA member agents surveyed reported a rise in the number of ‘unplanned’ lettings as homeowners turn to the PRS because they are unable to sell their property, or holding off until a higher price is achievable. This figure has risen from 40 per cent at the beginning of 2011. According to ARLA, some homeowners will be reluctant –


and unprepared – landlords, “Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords,” said ARLA President Tim Hyatt. “However, lettings is an unregulated industry and there can be pitfalls for both landlord and tenant, including l oss of monies. While we are, of course, happy


to see an increase in the number of landlords, it is vital that every landlord – reluctant or keen – seeks expert advice before embarking on a rental arrangement”.


PROPERTYdrum FEBRUARY 2012 47 Tim Hyatt


Dorian Gonsalves


in the float will help new franchisees with loans to cover £100,000 start-up costs, including an initial £22,500 set-up fee to the firm.


Michelle was Deputy Director in the Department of Communities and Local Government and has had a lengthy career in the civil service in a wide variety of policy sectors, most recently housing and planning. She brings her expertise in developing policy and strategies for change together with an understanding of the expectations that ministers have of external partners such as ARMA. “I am delighted to be joining ARMA at this important point in the Association’s development” said Michelle Banks. “Clearly David Hewett will be a very hard act to follow, but I am very much looking forward to the challenge. “My aim is to build on the


excellent foundation provided by the existing organisation and to drive the development of an enhanced self-regulatory regime.” ARMA’s Chairman Peter Dening commented, “I am delighted to welcome Michelle Banks to the role of Chief Executive Officer. I believe she will bring to ARMA the dedication and skill necessary as our Association expands its activities and influence.”


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