£1 Billion of Letting Agents Sold

In 2025, we recorded the strongest year in our 32-year history. Activity levels were exceptional. Instructions were up, completions were up, and the appetite for acquisition across the sector was stronger than at any point we have previously experienced. We were so focused on delivering for our clients—bringing buyers and sellers together, structuring transactions and navigating negotiations—that we almost failed to recognise a landmark achievement.

2025 became the year in which the cumulative value of businesses we have sold exceeded £1 billion.

That figure has not been achieved overnight. It represents 32 years of consistent focus in one specialist sector and more than 700 completed transactions. It reflects thousands of meetings, countless valuations and a disciplined commitment to understanding what drives value in a letting agency business. Above all, it represents the trust placed in us by business owners at pivotal moments in their lives. We are immensely proud of that milestone—not simply because of the headline number, but because of the depth of experience and relationships that sit behind it.

When we began selling letting agencies in 1992, the market was very different. The majority of businesses were owner-managed, often run by a single proprietor or a husband-and-wife team. Most sellers were in their fifties, sixties or seventies and their primary motivation was retirement. They had built solid, reputable businesses over many years and were ready to step back. Succession planning was usually limited, and disposal was often the natural end point of a long career.

Today, the landscape has evolved considerably.

The average value of the businesses we sell is significantly higher than it was three decades ago. Portfolios are larger. Fee income is stronger. Operational systems are more sophisticated. Ownership structures have also changed, with many agencies now held by multiple shareholders, partners or corporate groups rather than individuals.

Perhaps the most significant change, however, is the motivation behind a sale.

While retirement remains a factor for some, a substantial proportion of today’s sellers are much younger. Their decision to exit is not driven by age but by strategy. They recognise that capital tied up in a single operating business carries concentration risk, operational pressure and exposure to regulatory and market changes. By crystallising value at a strong multiple and redeploying the proceeds elsewhere, they can often achieve better risk-adjusted returns with considerably less day-to-day responsibility.

The mathematics are persuasive. Very few letting agencies consistently achieve net profit margins exceeding 20%. When profits are extracted as dividends, taxation can approach 50%, reducing the effective return to around 10% after tax. By contrast, investing sale proceeds into well-structured commercial property or alternative ventures can deliver yields at or above that level, frequently with lower volatility and more favourable tax treatment when structured correctly.

It is this economic logic, combined with an increasingly active buyer community, that has fuelled the strength of the current business sales market. Consolidation is accelerating. Well-capitalised acquirers are seeking scale, recurring income and geographic expansion. High-quality, well-run businesses are attracting strong multiples and competitive interest.

Looking ahead, my view is that many of the largest and best letting agencies will change hands within the next five years. The window of opportunity for sellers is significant, but markets move in cycles. Those who plan early and position their businesses correctly are likely to achieve the strongest outcomes.

It is entirely feasible that we will transact another £1 billion worth of letting agencies over the next five years. If that proves to be the case, it will mark not just continued growth, but the culmination of a long period of sector consolidation. Beyond 2031, the picture may look very different. Consolidation may be largely complete. Whether that signals retirement for me—or the beginning of a new chapter in another consolidating sector—remains to be seen.