Merger Mania Hits Managing Agents

The competitive world of leasehold flat management has intensified as Countrywide Managing Agents (CMA) scooped up two smaller rivals. The acquisition comes after Crabtree Property Management went on a shopping spree earlier this year, buying niche Central London managing agents Moretons for an undisclosed sum. CMA’s acquisition of residential leasehold managing agents Labyrinth and HLM added more than 25,000 units and 100 staff to the CMA group, turning it into one of the UK’s largest property managers. Chris March, Director of CMA described the move as ‘...an opportunity for us to operate on a truly national scale and provide a UK-wide service offering.’ With responsibility for 65,000-plus flats around the country, CMA is now one of a growing band of national players which includes Peverel OM. Increasing regulatory controls and complexity of management often make it financially unattractive to manage only a small portfolio without a significant hike in service charge payments. Managing agents with smaller portfolios sometimes charge unrealistically low fees to compete with larger rivals and find it difficult to deliver residents’ expected levels of service. Agents, with portfolios running into thousands of units, can afford to control service charge costs and still offer value-added services. These can include 24-hour emergency cover and protection against the cost of LVT cases. As March explained, ‘We have dedicated regional offices with property managers for each of our developments. ‘A larger business allows CMA to put in dedicated resources and ensure there are experts available to deal with more complex issues. ‘Scaling up a property management business does make considerable sense, as customers want a name they can trust, who have the skills, experience and resources to manage their portfolio and any critical issues that might arise.’