A new online lettings platform has launched in London and Edinburgh, offering landlords a 7.5% flat management fee and claiming traditional agents can charge effective rates exceeding 20% once hidden costs are included.
Prop247 targets cost-conscious landlords
Prop247, backed by seven-figure investment, has been founded by David Alexander, former joint chief executive of a Scottish lettings agency that managed some 5,000 properties in central Scotland. The platform combines technology with on-the-ground agents at what it claims is a fraction of traditional costs.
The company says its analysis shows hidden charges from traditional agents can add thousands of pounds over the life of a tenancy, distorting returns and making it difficult for landlords to understand their true costs.
“The lettings sector is the one area of property that hasn’t benefited from technological innovation,” said Alexander. “We’ve built a platform which delivers complete transparency for both landlords and tenants, removing the inefficiency tax that traditional agents pass on through expensive high street offices.”
The platform allows tenants to book viewings around the clock, submit applications out of hours and track maintenance requests in real time. Landlords receive instant notifications and full visibility of all property activity, while the system automatically coordinates contractors and handles communications.
Launch timing coincides with RRA fee pressure
The launch comes ahead of the Renters’ Rights Act, which will remove lease renewal fees in England and Wales and is expected to force established agencies to restructure their fee models. Traditional agents typically charge extra for essentials such as inventories, check-ins, compliance tasks, renewals and exit fees.
Irvine Conner, Prop247 co-founder, said many landlords fall into a “cost trap” where an attractive headline management fee masks a far higher actual cost over the tenancy period.
“Our model could enable portfolio landlords to reinvest savings into expanding their holdings, reversing the current trend of private landlords exiting the sector,” Conner added. “A landlord with just five properties earning average London rents, paying a headline rate of 12%, could save over £10,000 annually.”
Expansion plans hinge on hitting critical mass
The company projects breaking even once it has 650 to 700 properties under management. Longer-term targets include growing the portfolio to 25,000 homes within five years, a level at which the business believes it could reduce costs further through bulk purchasing of services and equipment.
Prop247 has launched with partner agents in London and Edinburgh, with plans to expand into additional markets as demand grows. The firm says its systems are designed to handle portfolios of varying sizes.
Guidance from the government’s landlord portal confirms that all letting agent fees must be clearly disclosed upfront to landlords before they sign up to any service.
Opinion
The timing of this launch is notable. With the RRA about to eliminate renewal commissions for letting agents, new entrants are spotting an opportunity to undercut established players whose business models depend on ancillary fees. Whether Prop247 can deliver on its promises remains to be seen, but landlords frustrated by opaque charging structures should at least welcome the competitive pressure. The 7.5% headline figure will only mean something if the comparison against traditional agents is genuinely like-for-like.
