Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Lettings Portfolios Now Favoured in Estate Agency Acquisitions
Buyers in the UK estate agency sector are increasingly targeting lettings portfolios rather than acquiring entire agencies, according to research by The Business Acquisitions Group (BAG). The analysis, which reviewed transactions completed between 2024 and August 2026, highlights a shift in acquisition strategy as consolidation continues across the industry.
BAG's research indicates that recurring managed lettings income is now a primary focus for buyers. This trend is exemplified by recent transactions such as Lomond’s acquisition of Edward Mellor’s lettings division and Dwelly’s purchase of the lettings business of AP Morgan in July. The findings suggest that owners of agencies with both sales and lettings divisions may see buyers assess these elements separately when considering acquisitions.
The report also notes a change in the type of buyers driving consolidation. Private equity-backed businesses have become more prominent in estate agency acquisitions. BAG identifies Campions Group, the UK arm of French group Emeria, as an active buyer in London. Additionally, new sources of acquisition finance are expanding the pool of potential purchasers. For example, property investment business Sourced launched a programme in 2025 to provide franchisees with funding to acquire letting agencies.
According to BAG, the acquisition market remains busy, with most deals completed using capital from private equity-backed platforms and one well-funded technology business. BAG reports that it has acquired more than 156 businesses over the past five years.
This shift in acquisition strategy is relevant for UK letting agents and inventory clerks, as the focus on managed lettings portfolios may influence future business valuations and exit strategies.
Source: Property Industry Eye