Property shop plans northern campaign

By Neil RoseThe Solicitors Property Shop (SPS) is setting up in Sheffield, Barnsley and Keighley in the next fortnight, following recent expansion to Carlisle and Huddersfield, it emerged this week, after the SPS reported a 20% increase in sales last year.However, a slowdown in members joining has led the SPS to unveil a shift in priorities which will see it concentrate on building a presence in its existing markets rather than actively seeking to roll the concept out nationwide.The SPS announced home sales worth more than 24 million for last year, up from 20 million in its first full year.

The initiative, which expanded out of its north-east base into west Yorkshire last year, has set a 40 million target for 2001.It currently has 44 law firm members operating out of 68 offices in Tyneside, Teeside, County Durham and west Yorkshire, in addition to a flagship sales centre in Newcastle city centre.

While expansion has not come as rapidly as hoped, members are expected to open up shop in Barnsley by the early summer, as well as in Selby in Yorkshire and Sherburn in Durham.The SPS an offshoot of the successful Edinburgh Solicitors Property Centre (ESPC) is negotiating with potential property selling solicitors in Leicester, Oldham, Kendal and Penrith.

Last year, the two longest-established SPS centres of Newcastle upon Tyne and Darlington registered 627 properties and sold 383 homes worth 23.7 million.

The average price of properties sold by SPS members in the north-east rose by 2.9% to 61,965.The nine SPS offices which opened around Halifax in June 2000 registered 77 properties in their first six months, with 11 sales worth 543,287.Properties are marketed through a combination of the SPS Web site, the central showroom (in the north-east), each firms own office displays, the fortnightly SPS property guide, and local press advertising.All new members pay an annual subscription of 250 per partner to the SPS, capped at 1,250, and a fee of 165 (inclusive of VAT) when they receive a firm instruction from a client to register and market their property.Simon Fairclough, ESPCs marketing director, conceded that they were frustrated by the level of take-up, which he attributed to firms fears of losing referrals from estate agents, of the unknown, and of the required investment in staff, altering premises and initial marketing.The shift in priorities did not mean the SPS would ignore opportunities to expand into new areas, Mr Fairclough explained.

But we should be making more of an impression in the areas we already occupy.The SPS has been most successful in Darlington, where it is a major player in the local estate agency market.

Local firm Latimer Hinks is the SPSs star performer, selling 60 properties in 2000 worth more than 3 million.

Our move into property selling has given our firm a completely new focus and vision for the future, said partner Anne Elliot.

SPS has created opportunities for us to consolidate our hold on the residential conveyancing market as well as develop new skills for our staff.

We are confident of generating around 100,000 worth of fees from home sales in 2001.