Lettings Firms Sell For Record Prices

Despite the downturn in the housing market, lettings agents are being sold for record prices.  My record price for a sale last year was 2.13 x last year’s turnover which equated to more than 10 times pre-tax profit.  So why in the middle of a recession is there so much demand for good quality lettings businesses?  I believe that there are 3 main reasons:

1.  The lettings market is forecast to grow by another 50% over the next 5 years.

2.  It is hard to start a new lettings business from scratch.  Many estate agents have tried and failed and are now prepared to pay a premium for a ready made business.

3.  The best run firms are getting slicker and slicker and know that they can significantly increase the margins that are being made by most of their smaller competitors.

4.  Many sales are made to firms who are already trading in the area and they know that a merger will bring significant cost savings.

Only the very best firms are going for these exalted prices but there is a huge demand for even second tier firms.  So if you are thinking of selling your lettings business now could be a really great time to sell.

If you would like a free valuation of your business, without obligation or an informal chat in confidence and without obligation, call Adam Walker on

07785 277 262 or email him on adam@adamjwalker.co.uk