Five year agreement signed with LSL

RNS Number : 6516W

Property Franchise Group PLC (The)

27 April 2021

 

27 April 2021

  THE PROPERTY FRANCHISE GROUP PLC

("TPFG", the "Company" or the "Group")

Five year agreement signed for LSL to provide mortgage and protection advice to The Property Franchise Group's network

The Property Franchise Group PLC, the UK's largest property franchisor, is delighted to announced it has reached a long-term agreement with LSL Property Services Plc ("LSL"), for LSL to offer mortgage and protection advice services to all of TPFG's franchisees, including those recently incorporated as a result of its acquisition of Hunters Property Ltd.

TPFG now has over 430 physical office locations, conducts the sale of circa 23,000 properties per annum and manages in excess of 73,000 tenanted properties.

In line with TPFG's stated strategy to grow the number of financial services advisers serving its network, this agreement means that LSL will be providing digital and face-to-face mortgage and protection advice to the customers of TPFG and TPFG's franchisees. This will allow franchisees to augment their income generation potential and is a clear demonstration of TPFG delivering on its purpose to support its franchisees and to help them to become more successful.

TPFG franchisees will be provided with a range of options via LSL's award winning PRIMIS Mortgage Network. Franchisees will be offered the opportunity either to take on their own mortgage adviser and become an Appointed Representative of PRIMIS, or to refer their customers to existing PRIMIS Appointed Representatives, including LSL's in-house mortgage brokers. The agreement is for a minimum of a five year period.

LSL is already one of the largest providers of services to mortgage intermediaries and mortgage & protection advice to estate agency customers completing c.£32.6bn of mortgages in 2020.  It currently represents around 9% of the total purchase and remortgage market with over 2,600 advisers.

Gareth Samples, Group Chief Executive Officer of The Property Franchise Group, said:

"We have publicly committed to growing the financial services capability available to our network and LSL has emerged quickly as the best option for our franchisees. I am delighted that we will now be able to help them to generate additional income, in partnership with LSL. Together we will develop a new digital mortgage journey that really meets the needs of our customers and our franchisees. I believe LSL has an unparalleled understanding of how to provide high quality mortgage and protection advice to estate agency customers and I look forward to building a market-leading digital and face-to-face service to the significant benefit of both groups".

David Stewart, Group Chief Executive Officer of LSL, said:

"I am delighted we have been selected by The Property Franchise Group plc as the preferred long-term provider of mortgage and protection advice. We have previously set out our ambition to accelerate the growth in our Financial Services Division including PRIMIS Mortgage Network and this agreement underlines the scale of this opportunity. It is also early validation of our decision in February 2021 to purchase Mortgage Gym, whose technology gives us a clear competitive advantage and helped win the support of The Property Franchise Group plc". 

Details of the agreement

The agreement covers the five year period to April 2026 during which time LSL's Financial Services businesses will be recommended by The Property Franchise Group to its franchisees as the preferred provider of mortgage and protection advice. 

LSL will be deploying an innovative service which combines face-to-face advisors with a central team providing video and telephone advice, all supported by Mortgage Gym technology, following LSL's purchase of this technology on 11^th February 2021. Face-to-face advice will be provided by introduction to local advisers with franchisees also having the option to offer mortgage and protection advice as an Appointed Representative of PRIMIS Mortgage Network.

Following the completion of the agreement, LSL has commenced the process to recruit the additional advisers required to meet the expected volumes arising from referrals from c23,000 house sales completed annually by TPFG and its franchisees.  It is anticipated that the service will be fully operational by the end of 2021.  Thereafter, volumes are expected to continue to grow as the service is embedded and, in time, benefits from repeat business from established clients.

As part of this agreement, LSL and TPFG also plan to work together to develop a specialist mortgage advice service designed specifically for landlords. The aim of this collaboration will be to create a market-leading mortgage proposition for landlords that can support the needs of both LSL and TPFG. 

Use of Mortgage Gym technology

Mortgage Gym has developed an innovative digital platform that confirms mortgage eligibility within 60 seconds, matching borrowers to potential lenders. As well as the benefits to customers, it also improves adviser productivity and, through its Customer Relationship Management system, helps engage customers at the right time through the process. Its use will enable advisers to quickly and cost-effectively confirm the mortgage eligibility of a potential house purchaser, including the likely sums that could be borrowed, enabling both the potential purchaser and estate agent to progress a transaction with confidence. The technology also ensures that both the potential purchaser and estate agent have a clear understanding of the potential budget when searching for a new home. 

For further information, please contact:

The Property Franchise Group PLC   Gareth Samples, Chief Executive Officer David Raggett, Chief Financial Officer	01202 405549
Cenkos Securities plc  (Nominated Adviser and Broker) Max Hartley, Callum Davidson Julian Morse, Alex Pollen, Dale Bellis (Sales)	0207 397 8900
Alma PR  Susie Hudson Justine James Harriet Jackson	0203 405 0209

About The Property Franchise Group PLC:

The Property Franchise Group PLC (AIM: TPFG) is the largest property franchisor in the UK and manages the second largest estate agency network and portfolio of lettings properties in the UK.

The Company was founded in 1986 and has since grown to a diverse portfolio of nine brands operating throughout the UK, comprising longstanding high-street focused brands and a hybrid, no sale no fee agency.

The Property Franchise Group's brands are Martin & Co, EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates, Mullucks & Country Properties.

Headquartered in Bournemouth, UK, the Company was listed on AIM on the London Stock Exchange in 2013. More information is available at  www.propertyfranchise.co.uk

 

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