UK Residential Lettings – time to move in?

The number of households occupied by private renters in England increased from approximately 2.03 million in 2000 to 4.69 million in 2017. Since then, this has been relatively flat, but there are still a huge amount of properties that require both letting and managing.

At the same time, existing and new Legislation (e,g. the Renters’ Rights Act) will continue to push professionalisation in the lettings industry, as both tenants and owners demand a quality, compliant product from their service providers.

Around 15,000 of the 26,000 residential agency branches in the UK are solely dedicated to lettings, so there is real opportunity for continued PE investment in the sector. 

We like businesses that are tech-enabled, with advantageous compensation structures, low churn (landlords, tenants, and staff), an appropriate branch density, and with a clear focus on compliance. Buy and build is an obvious strategy from a geographical expansion perspective but as with all professional services businesses, this needs to be driven by a clear strategy built on solid execution.

Peter Cookson, our Managing Partner, has worked as a Chartered Surveyor in residential sales and lettings. Armstrong has worked on numerous transactions at the intersection of the Built Environment and Professional Services. To discuss in more detail, please contact us.

Peter Cookson

pcookson@armstrong-ts.com
+44 7871 425 467