2024 has been a monumental year for acquisitions and sales in the estate and lettings agency space —possibly the biggest we’ve ever seen.
At Atomic Consultancy, we’ve been privileged to support numerous businesses through successful acquisitions this year, including our largest deal to date: the eight-figure sale of Miles & Barr to Lomond. This landmark deal wasn’t just a proud achievement for our team—it validated the bold step we took in starting Atomic just over three years ago.
But this wave of activity isn’t limited to just one transaction. Major agencies like KFH, Fine & Country, Haslams, James Pendleton, Stirling Ackroyd, Chase Evans, and even mortgage broker Coreco have all changed hands recently, signalling a booming M&A market.
So, the big question is: Will this continue into 2025?
We genuinely believe it could. Why? Because several key factors are aligning to make now an ideal time for both buyers and sellers to act.
Why Buyers Are Hungry for Deals
Corporate Demand Remains Strong
Corporate interest in acquiring property businesses is at an all-time high, especially for lettings-focused firms. While revenue multiples have remained steady, the potential for future growth is significant. Increasing demand for rental properties, combined with limited housing stock, makes the lettings market more attractive than ever.
Lettings Income Is Now Seen as Essential
The mindset around rental income is shifting. Investors increasingly view it as a stable, recurring revenue stream, more like a utility than a volatile commission-based income.
Funding Is Still Accessible
Despite global economic challenges, investment funding remains available, particularly for safe, property-based assets. Compared to riskier markets like hospitality, manufacturing, and tech startups, property offers a more secure investment.
Compliance Challenges Are Less Concerning for Larger Buyers
Corporate acquirers are less concerned about incoming compliance changes, such as the Renters’ Rights Act and the abolition of Section 21, as their scale allows them to absorb regulatory challenges more effectively.
The UK Property Market Is Still a Safe Bet
Despite economic uncertainty, the UK property market continues to be seen as resilient and lucrative. Its long-term potential keeps institutional investors interested.
Why Sellers Should Consider Exiting Now
The Sector Has Withstood Several Major Events
In recent years, the property sector has weathered:
- Brexit
- Multiple general elections
- COVID-19
- Inflation surges and interest rate hikes
The Budget Could Increase Costs
Employer National Insurance hikes could add thousands to an agency’s wage bill, significantly impacting profitability.
Upcoming Employment Law Changes
The Workers’ Rights Bill, currently progressing through Parliament, will give employees far greater protection, reducing flexibility for business owners. For some, this could be the tipping point to consider selling.
Heightened Competition
The rise of self-employed models, online agencies, and progressive fee structures is intensifying competition across the sector, adding pressure on smaller, traditional firms.
Business Asset Disposal Relief (BADR) Is Changing
Currently, Business Asset Disposal Relief allows sellers to pay just 10% capital gains tax on business sales. However, this will rise to 14% in April 2025, with further increases expected in the near future. Acting now could help sellers benefit from the current, lower tax rate.
A Rare Window of Opportunity
This collision of circumstances—increased buyer appetite, strong market performance, regulatory shifts, and looming tax changes—has created what I believe to be a unique moment for the property industry.
The combination of demand from serious buyers and the potential for sellers to maximise returns makes this an opportunity we might not see again for years.
So, Will You Be One of Them?
At Atomic Consultancy, we specialise in managing business sales and acquisitions with a focus on maximising results while providing honest, hands-on support throughout the process.
If you’ve been considering selling your agency or you just want to explore your options—now is the time to act.
Free, No-Obligation Valuation
Expert Guidance from Start to Finish
10,000+ Pre-Qualified Buyers
Let’s start the conversation. Get in touch today for a confidential chat about your business goals.
