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GAZETTE
DECEMBER 1988
Out of London
MULTIPLE ADVANCE
John Matthews B.A. (Law), Solicitor
The change in character amongst
the estate agents in my area has
been quite startling. Until 1986,
there was a range of independent
agencies of all sizes, some very
long established, others quite
recent in origin. Towards the end of
1986, one of the newer firms w i th
a marked aggressive quality in its
sales policy and w i th a large
number of branch offices, was
acquired by a national firm of estate
agents.
In January 1987 the Prudential
Assurance Co. acquired the largest
firm of estate agents (established
in 1786). Even the old firm name
was dropped. As a consequence,
t wo other firms next in size and
b o t h long es t ab l i shed, amal-
gamated and promoted a definite
image including the word 'Home-
shop' in their sales literature.
The amalgamated firm, however,
was acquired in January 1988 by
the Nationwide Anglia Building
Society. At the same time another
medium sized firm was taken over
by the Abbey National Building
Society. Whilst the firm names in
these t wo examples have been
r e t a i ned, t he name of t he
respective building society is given
as much prominence. Yet another
agency, largely specialist in its
c l i en t e l e, sp l it in t w o ; t he
ag r i c u l t u r al
part
r ema i n i ng
independent, the residential sales
part acquired by t he General
Accident Group.
The end result of all this is quite
bizarre. A sole p r a c t i t i one r,
u n q u a l i f i ed
ex cept
by
his
experience, now finds himself w i th
three far flung small offices, the
largest independent in the area.
There has already been a large
increase in work for independent
surveyors for the other building
s o c i e t i es do not w a n t t he ir
mortgage surveys conducted by
agencies controlled by one of their
rivals.
There are merits in remaining
independent as the small agents
are now finding. Clients who want
independent advice without feeling
they have to contribute to national
profit margins, will remain faithful
to the independent agency. There
are even repercussions within the
new mu l t i p l e s. Some f o rmer
partners, now local directors, have
resigned or been retired. The
remaining local directors are finding
they have to measure up to profit
margins set down by people in
London w i th no idea of local
conditions. The upshot is that
some of those local directors,
pa r t i c u l a r ly t ho se w ho
are
surveyors, may leave their present
situations and set up on their own
as independents once more.
How does the local law society
view what has happened to the
major estate agents? Is there a chill
of fear that the same acquisition
process will affect solicitors' firms
if the statutory restraints are
removed? Is there the fear that the
multiples will add conveyancing to
their services and be able to
undercut conveyancing charges of
solicitors by making conveyancing
a loss leader?
So far the local law society is
adopting an optimistic approach,
believing that the new multiples
will not provide a sufficiently skilled
service, if they attempt conveyanc-
ing at all.
A 'wait and see' attitude has
been a d o p t ed t owa r ds
t he
possibility of solicitors selling
property. The experience of a small
solicitor estate agency so far is not
very encouraging. So far, solicitors
have held back not wishing to incur
the wr a th of estate agents. Now
that these are mostly controlled by
multiples, this restraint has been
removed.
The writer remains at present un-
convinced that solicitors should
venture into property sales, a field
in which they have no expertise at
all. It is little use competing w i th
estate agents, if the competition
provided is not expert.
The writer believes that the
quality of independence is still one
to be prized even today. It is even
more important in times when
C O M P A NY
S E C R E T A R I AL
C O N S U L T A NT
PETER H. QUINLAN
MBA, AITA
OF FERS
COMPLETE
COMPANY SERVICE
Advice on Corporate Procedures
Drafting of Resolutions and M i n u t es
A r r a n g eme nt of C o m p a ny Me e t i n gs
Searches and Up d a t es of
C omp a ny Records
Filing Returns and Other Comp l i a n ce
67 LANSDOWNE ROAD
DUBLIN 4
Tel.: (01) 684245
control of sales of land is rapidly
becoming vested in the hands of a
few remote corporations.
Reprinted f rom the "Out of
London" column in the
Solicitors
Journal,
vol 132, Issue 22, 3
June,
1988,
w i t h
k i nd
permission.
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