Key Drivers of Consolidation

UK Property Management market is consolidating under a number of larger businesses which deliver national coverage and a broader range of services to Private and Institutional Investors. There are a number of key drivers of the consolidation being seen in the UK Market.

Profile of landlords – Current market is dominated by private landlords (95% of the market relates to private investors with less than 5 properties) but introduction of larger / more professional private landlords, funds and institutional investors will place pressure on small business

Competition - New entrants are focused on delivering a broader business model offering a more comprehensive offer based on US and European models will place pressure on traditional models

Margin Pressure – Larger business with more comprehensive models will place pressure on small sub-scale business which do not deliver good value

Regulation - Increasing regulation both of landlords and agents

Consolidators – a number of larger businesses are currently acting as consolidators in the UK Market and will continue in the short term until they obtain the required market share in target regions