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TODAY'S OTHER NEWS

Confirmed: easyProperty entering sales market in September

easyProperty, which until now has been operating largely in the residential and commercial lettings markets, has confirmed that it is moving into sales in September.

A spokeswoman has told Estate Agent Today that the launch will be national, will take place in September and will “probably” happen in the second week of that month. 

It was September 17 2014 that easyProperty launched into lettings promising, at the time, to start residential sales early in 2015. 

Earlier this year the agency told Reuters news service that it planned an Initial Public Offering in the second half of 2015 to raise funds for its expansion. This was quoted as seeking funds "significantly larger" than the £9.75m raised last autumn. 

The fund-raising initiatives last year valued the company at £66m. 

easyProperty - which advertises residential lets on Rightmove and Zoopla, and commercial lets on PropertyLink and MoveHut, in addition to its own website - says it ultimately intends to enter the online room rentals and property auctions sectors, too. 

It also aims to expand with a similar offer for the property markets of France, Germany, Greece and the Netherlands.

In May we reported that easyProperty had appointed The Red Brick Road company as its retained creative and PR agency ahead of a move into sales in the UK. Red Brick lists Savills amongst its existing clients.

  • Trevor Mealham

    At very, very low prices can only be classed as a way for pretty much PRIVATE SELLERS to enter their homes into rightmove and zoopla.

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    • R M
    • 30 July 2015 08:56 AM

    Looking forward to chewing the fat with EasyChris on this one! Oh wait a minute he's not there anymore.
    It looks like this is an online gamble he couldn't promote!

  • Glenn Ackroyd

    Well at least when they float, there will be prospectus to see their profit and price to earnings ratio.

    Call me a cynic, but I've not seen any of the companies who publicly have these funding rounds mention any profit figures.

    Lots of companies have raised millions of pounds of Crowd Funding and private investor start up capital. And there seems to be a rush to float.

    I'm just interested in the fundamentals.

    Are these businesses burning cash on marketing for brand awareness, or are they actually making real profit?

    That's the only number that counts to me.

    As of today, EasyProperty they have less than 500 properties listed on Zoopla -
    http://www.zoopla.co.uk/find-agents/?company_name=easyProperty&radius=0&search_source=find-agents

    So on listings, we're 63% bigger - If they're worth £66m, does that make us worth over £100m? No.

    Back in the real world, I'll stick to making profit and a valuation based on price/earnings ratio ...

  • Jon  Tarrey

    It has all gone very quiet on the easyProperty front. Might be nice to know how well the lettings side of their business is doing - not brilliantly, by all accounts - before they embark on this sales market venture.

    They clearly have no issue in securing investment. That's not hugely surprising given the brand name. easyProperty's issue seems to be turning that funding into a successful, functional business. I think they've found it a lot harder than they would have originally imagined. As many posters have said before, there is a world of difference between property and aviation. Whatever you think of easyJet, their business plan and success can not really be argued with, but you definitely couldn't say the same for easyProperty.

  • Jon  Tarrey

    Yes, where is easyChris? He was always good for offering some insight into how the company was doing, despite his massive (and understandable bias) towards the company he works for.

    Maybe he's given up the ghost? Perhaps the plan is to make a success of it in the sales market, so the lettings experiment can be swiftly swept under the carpet.

    Sadly, it seems more like a vanity project from the "easy" brand that is only going to fall flat on its face.

  • Daniel Roder

    Forgive my ignorance, but how can a company who seem to have had no impact whatsoever on the property landscape be valued at £66m?

    I don't know of anyone who has actually used them. Have they had any customers?

    Not here to give them a kicking - but it definitely does seem a case of a big brand spreading itself too thin, trying to be all things to all people. Bit like Virgin or Tesco. Some of the ventures work out well, others spectacularly fail. I fear the latter will be the case with easyProperty.

    It's all very well having plenty of investment and wealthy backers, but that's of no use if no-one actually uses their services.

  • Kelly Evans

    Not surprised to see easyProperty struggling. This job can't just be done by everyone, despite what some of the comedians here will tell you. You actually need to know what you're doing, you need local knowledge, experience and expertise.

    easyProperty, with the swagger and complacency of a big brand, thought they could just stroll in and take over the industry. But, whaddya know, it hasn't happened.

    Can anyone actually tell us how well the lettings arm of their business is doing? Or will we have to wait until they float?

    I, too, know of no-one who has used their services, but maybe they are being absolutely inundated and are just keeping very quiet about. Which, given the brashness and confidence of the easy brand, seems highly unlikely.

  • Trevor Mealham

    RAISING BIG FUNDS FOR A BUDGET AGENCY

    1. The Biz plan centres around a consumer pitch of: 'We can SAVE you thousands by doing it CHEAP' - which is is an easyPitch for investors to understand to put their investment into.

    2. A big brand name or celeb VC helps = £m's raised

    3. Throw money at big impact - TV - press etc, and make the offering cheap so many customers engage - there will be some success when such models use traditional agency outlets like RM and Z

    4. Return for next £m's of investment - showing some success and placing outstanding value (that goes outside normal realms) = greater funding.

    5. All VC's like a 5 year exit. Taking £m's out and no doubt retaining some shares.

    6. Company has some traction - but when the moneys gone. ............

  • Glenn Ackroyd

    Spot on Trevor.

    Not commenting about EasyProperty specifically, but generally on lots of new estate agency venture models. It smacks of the dotcom boom and all the hyperbole that surrounded LastMinute.com.

    Early backers need a quick exit before the party ends and the small investors wake up with the hangover.

    We know how the dotcom boom party ended.

    However, one of these models could emerge as the new ebay/Amazon for Estate Agents. Then the backers will have got an incredible reward for their risk.

  • Trevor Mealham

    Cheers Glen - yes just seems to be the pattern. Shame, as budget does a job, but there are things budget fees can't do which can include getting the best deal for the customers.

    More money in the pot from better fees = agents ability to do better. THAT IS unless £m's are poured in at the start. If a model then bleeds money out, long after vc's have hit their magic 5 years to exit. What's left may have limited time.

  • icon
    • R M
    • 30 July 2015 13:49 PM

    @jon he has given up the ghost, moved to pastures new (old) he is an ex press keyboard warrior. He isn't there anymore, gone, scarpered!

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