Lettings books are becoming an increasingly sought-after target as consolidation across the estate agency sector continues.
Research by The Business Acquisitions Group (BAG) suggests buyers are increasingly targeting recurring managed lettings income rather than acquiring entire agencies.
The analysis looked at transactions completed between 2024 and August 2026.
BAG says the shift coincides with private equity-backed businesses playing a greater role in estate agency acquisitions.
Recent examples include Lomond’s acquisition of Edward Mellor’s lettings division. Dwelly also acquired the lettings business of AP Morgan in July.
The trend could have implications for owners of combined sales and lettings agencies considering an exit.
According to BAG, buyers are increasingly assessing the sales and lettings elements of an agency separately.
Buyers chase recurring income
Martin Bunney, founder and managing director of BAG, said: “The clearest pattern that we are seeing, confirmed by our research, is that the acquisition of lettings books is now favoured over entire agencies.
“Sales income is welcome, but all serious buyers are now competing for managed income. This being the case, the most important thing a seller can do is clean up their managed portfolio.”
The research also points to a change in the type of buyer driving consolidation.
Private equity-backed platforms have become increasingly prominent, according to BAG. It identifies Campions Group, the UK arm of French group Emeria, as one of the active buyers in London.
Meanwhile, new sources of acquisition finance are widening the pool of potential purchasers.
Property investment business Sourced launched a programme in 2025 offering franchisees funding to acquire letting agencies.
Acquisition market changes
Bunney said: “The acquisition market remains extremely busy with deals mainly completed using capital from private equity-backed platforms, and one well-funded technology business.”
He added: “The 2026 acquisition market has changed. Buyer strategy has moved away from entire agencies by large franchise groups to lettings books by private equity platforms.”
BAG says it has acquired more than 156 businesses over the past five years.
