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SarahBell

Ea Goes Bust ...

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http://www.oldham-chronicle.co.uk/news-features/8/news-headlines/90688/estate-agency-ceases-trading

Oldham estate agent and lettings agency Cousins has gone into liquidation.

Cousins and Co (NW) Limited - an independent agency for more than 40 years - was voluntarily wound up by company director Andrew Chadwick on February 17. The company was based in Failsworth and had offices in Oldham, Shaw and Lees.

It follows several articles in the Chronicle detailing how the company failed to pay landlords who used them to manage properties. Last August the Chronicle reported that one client had been left more than £10,000 out of pocket.

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Fro what I understand it's the lettings side that's keeping most EAs above water at the moment. If you start screwing over the only hand that's feeding you, there's only going to be one outcome.

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hehe, but then like a phoenix it rises from the ashes (less the lettings side), but is no way related to the bust company (except by the owner who is the same guy for both).

I saw a local kebab/pizza joint do just this, refit of premises top to bottom, then went bust so not paying refitter, back open a week later with new 'free' equipment.

Hopefully the refitter/supplier of equipment went in and burnt it down.

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Each first time buyer property a EA sells to a landlord reduces the supply on the market and reduced the EA's turnover of such property.

They've done it to themselves. Eventually when BTL own all property there will be no need for sales agents flogging houses at £5k per pop.

They would need to extract around the same transaction cost form the tenant/landlord over a 7 year period to breakeven on letting over sales.

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Well, there are now two shops in the village I live in.

One is the post office.....I can`t bring myself to mention what the other one is.

I `ll use it as my own personal canary.

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Each first time buyer property a EA sells to a landlord reduces the supply on the market and reduced the EA's turnover of such property.

They've done it to themselves. Eventually when BTL own all property there will be no need for sales agents flogging houses at £5k per pop.

They would need to extract around the same transaction cost form the tenant/landlord over a 7 year period to breakeven on letting over sales.

Also the small point that property is rather speculatively priced in the north so stocks just fester unsold, for years in some cases.. I was in North East Lincolnshire at the weekend and in a twenty mile drive from Louth to Grimsby I failed to spot a single property that was sold in the rural fenland area.

Perhaps a local can fill me in on how this works. I wouldn't mind retiring to that area, but it seems that once you have bought something up there you basically have no chance of selling it. And God knows how EAs survive.

Edited by crashmonitor

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I'm looking for a new rental in Northampton - the rental market is VERY busy here. Lots of rentals coming on and off the market. I've noticed letting agents charging more and more for fees (checks, guarantor etc) - can't help but think it's to compensate for a quiet sales market. Rental prices? Absolutely locked into what people earn on a monthly basis here. I've seen no rises in 5 years.

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