Dwelly has completed 10 agency acquisitions during 2026 as it bets that greater regulation and complexity in the private rented sector will drive demand for professional property management.
The lettings group now has more than 15,000 properties under management following an acquisition drive that has included Goodwin, Lime Property, Albery Tyson, Elliot Oliver, Move, Eden Harper, AP Morgan, Settio and Shaws.
Its latest deal for London sales and lettings agency Paramount Properties adds another 1,100 fully managed properties to the business.
The expansion comes despite continued pressure on private landlords from higher costs, taxation and regulation, including the implementation of the Renters’ Rights Act. Dwelly argues those pressures are creating an opportunity for larger, professionally managed agency businesses rather than undermining the long-term prospects of the lettings sector.
PRS EXPANSION
Analysis of historic housing tenure data by Dwelly puts the number of privately rented homes at 5.03 million, compared with 2.089 million in 2000.
As a proportion of the combined owner-occupied and privately rented housing stock, the PRS has increased from 12.5% to 23.3% over the period.
Dwelly believes the sector is now entering another phase of change, with landlords who remain in the market increasingly reliant on agents to manage compliance and regulation.
Sam Humphreys, Head of M&A at Dwelly, says: “If you judged the private rented sector purely by the headlines, you’d probably conclude it’s a market to avoid. Our view is very different.
“We think the industry is becoming more professional, not less attractive. Whilst some landlords have understandably decided that today’s regulatory environment isn’t for them, those who remain need more support than ever before and that only increases the importance of high-quality letting agents.”
AI INVESTMENT
Dwelly recently secured $170m in funding from investors including EQT Growth and General Catalyst to accelerate its acquisition strategy and investment in artificial intelligence.
Its technology is being developed to automate elements of compliance, maintenance, communications and property management rather than replace agency staff.
Humphreys says: “Our acquisition activity this year reflects that belief. We see enormous long-term opportunity in helping great local agencies become even stronger.
“Technology is a key part of that because it removes much of the growing administrative burden from agency teams, allowing them to focus on the advice, relationships and expertise that landlords and tenants value most.”
He adds: “For us, AI isn’t replacing the letting agent. It’s enabling the professional letting agent to become even more valuable.”
