Letting agents risk missing a major source of future instructions if they fail to adapt their systems and services to the requirements of institutional landlords, Propoly has warned.
Its analysis shows estimated annual investment in UK Build to Rent has risen from £2.3bn in 2016 to £5.5bn in 2025.
A further £3.1bn was invested during the first half of 2026, representing an 88.4% increase compared with the same period last year.
The resulting development pipeline is creating opportunities for agencies capable of managing large residential portfolios but Propoly says Build to Rent requires more than applying traditional buy-to-let processes at greater scale.
INSTITUTIONAL LANDLORDS EXPECT MORE DATA
Institutional investors typically require detailed operational reporting, consistently high compliance standards and transparency throughout the tenancy lifecycle.
Agencies must be able to manage hundreds of homes while maintaining oversight of tenancy progression, referencing, payments, maintenance and regulatory obligations.
Speed and efficiency are treated as baseline requirements rather than differentiating features.
Residents also expect digital onboarding, simple communication, rapid responses and an experience reflecting the standards and brand of the development.
TECHNOLOGY BECOMES ESSENTIAL AT SCALE
Propoly says agents need integrated technology capable of automating repetitive administration without requiring headcount to grow at the same rate as their managed portfolio.
This includes Right to Rent, anti-money laundering and Know Your Customer checks, licensing workflows, digital tenancy agreements and payment processes.
Sim Sekhon (main picture, inset), Group CEO at Propoly, says: “One of the biggest misconceptions in the industry is that Build to Rent is simply traditional buy-to-let with more properties. It isn’t. It’s an entirely different operating model, with institutional landlords expecting consistency, transparency and operational excellence at every stage of the resident journey.
“As investment continues to flow into the sector, Build to Rent is becoming far too significant for letting agents to ignore. The opportunity is enormous, but so too is the shift in expectations.”
EARLY MOVERS CAN SECURE INSTRUCTIONS
Sekhon says agencies do not need to rebuild their operations entirely but must connect the different stages of the tenancy journey and provide institutional clients with reliable data.
He adds: “The right technology allows them to automate repetitive administration, simplify compliance and connect every stage of the tenancy journey into one efficient workflow.
“That enables agencies to take on larger portfolios, deliver the service institutional landlords expect and grow without having to increase headcount at the same pace.”
