A new online lettings platform has been co-founded by John Alexander, former joint CEO of Scottish property agency DJ Alexander.
The platform will initially operate in London and Edinburgh and will charge a 7.5% management fee. The founders say this is lower than some high-street agents, particularly in London, where total costs can be higher once additional charges are included.
The service is built around a digital system that allows tenants to book viewings, submit applications and log maintenance requests online. Landlords can monitor activity in real time, receive updates, and manage repairs through coordinated contractor scheduling and automated communications.
Alexander said the platform was developed in response to limitations he experienced with existing property management technology while overseeing a large rental portfolio.
The business has secured seven-figure funding to support development and rollout, with the aim of providing a single system for landlords to manage properties across multiple locations.
Its launch comes ahead of the introduction of the Renters’ Rights Act, which will remove lease renewal fees in England and Wales and is expected to affect established lettings fee structures. The platform enters the market at a time when increased regulation and operating costs are also influencing landlord participation in the sector.
“Many landlords fall into what Prop247 describes as the “cost trap”, where an attractive headline management fee masks a far higher actual cost,” commented Prop247 co-founder Irvine Conner. “Traditional agents often charge extra for essentials such as inventories, check-ins, compliance tasks, renewals and exit fees, quietly pushing effective costs well beyond the advertised rate over the life of a tenancy.”
“Our analysis shows these hidden charges can add thousands of pounds, distort returns, and make it difficult for landlords to understand their real position. Prop247’s model removes this opacity through a single, transparent fee,” he continued.
Prop247 has launched with partner agents in London and Edinburgh and plans to expand into additional markets over time.
The company says its systems are designed to handle portfolios of varying sizes and expects to reach break-even at around 650 to 700 properties under management. Longer-term targets include growing the portfolio to around 25,000 homes within five years, a level at which the business believes it could reduce costs through bulk purchasing of services and equipment.
“Our model could enable portfolio landlords to reinvest savings into expanding their holdings, reversing the current trend of private landlords exiting the sector,” added Conner. “A landlord with just five properties earning average London rents, paying a headline rate of 12%, could save over £10,000 annually, potentially the difference between a viable investment and selling up.”