Lettings books are increasingly becoming the prized asset in estate agency acquisitions as private equity-backed buyers take a bigger role in industry consolidation.
Research by The Business Acquisitions Group (BAG) into deals completed between 2024 and August 2026 suggests acquisition activity is shifting away from large franchise groups buying entire independent agencies towards buyers targeting recurring managed lettings income.
The firm points to deals including Lomond’s acquisition of Edward Mellor’s lettings division and Dwelly’s purchase of the lettings business of AP Morgan in July 2026.
BAG says this has implications for owners of combined sales and lettings agencies considering an exit, with buyers increasingly valuing the two sides of the business separately.
RECURRING INCOME
Martin Bunney (main picture), Founder and Managing Director of The Business Acquisitions Group, says: “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 identifies a change in the type of organisations driving acquisitions, with private equity-backed platforms increasingly prominent.
BAG says Campions Group, the UK arm of French group Emeria, has become one of the most active buyers in London.
New sources of acquisition funding are also widening the pool of potential buyers. Property investment company Sourced, for example, launched a programme in 2025 offering franchisees funding to acquire letting agencies.
MARKET EXIT
Bunney says: “The acquisition market remains extremely busy with deals mainly completed using capital from private equity-backed platforms, and one well-funded technology business.”
He adds that agency owners considering a sale need to understand how the market has changed.
“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 and has databases of more than 5,000 prospective buyers and sellers.
Read The 2026 Business Acquisition Group report in full HERE.
