"We've built a groundbreaking platform, borne out of 40 plus years’ experience in the sector, which delivers complete transparency for both landlords and tenants, removing the inefficiency tax that traditional agents pass on through expensive high street offices"
- John Alexander - Prop247
A new online letting platform has entered the market with the aim of reducing costs for landlords and reshaping how rental properties are managed in major UK cities.
Prop247 launched this month, combining automated systems with local agents to provide what it describes as a fully remote, end-to-end letting service. The company says its model allows landlords to manage properties at a lower cost than through traditional high street agents.
The platform operates on a flat 7.5% management fee with no additional charges. This compares with advertised rates of 10% to 15% from many London agents, which can rise above 20% once extra services are added.
“The lettings sector is the one area of property that hasn't benefited from technological innovation,” said John Alexander, co-founder of Prop247 and former joint CEO of DJ Alexander (pictured on the left).
“We've built a groundbreaking platform, borne out of 40 plus years’ experience in the sector, which delivers complete transparency for both landlords and tenants, removing the inefficiency tax that traditional agents pass on through expensive high street offices.”
The system automates key parts of the lettings process, including booking viewings, submitting applications and logging maintenance requests. Tenants can access services at any time, while landlords receive real-time updates on activity across their portfolios. The platform also coordinates contractors and manages communication between all parties.
“Many landlords fall into what Prop247 describes as the ‘cost trap’, where an attractive headline management fee masks a far higher actual cost,” said Irvine Conner, co-founder of Prop247 (pictured right)
“Traditional agents often charge extra for essentials such as inventories, check-ins, compliance tasks, renewals and exit fees, quietly pushing effective costs well beyond the advertised rate over the life of a tenancy. Our analysis shows these hidden charges can add thousands of pounds, distort returns, and make it difficult for landlords to understand their real position. Prop247’s model removes this opacity through a single, transparent fee.”
Alexander developed the platform following his experience overseeing a portfolio of around 5,000 properties across central Scotland. He said frustration with the limits of existing property management technology led to the creation of a system designed to work at scale.
Backed by a seven-figure investment, the company has built a single platform for landlords with properties in multiple locations, allowing portfolios to be managed through one interface rather than through several different agents.
The launch comes as the Renters’ Rights Act approaches implementation in England and Wales, removing lease renewal fees that have formed part of many agents’ income. Rising compliance costs and regulations are also contributing to pressure on smaller landlords.
“Our model could enable portfolio landlords to reinvest savings into expanding their holdings, reversing the current trend of private landlords exiting the sector,” said Conner. “A landlord with just five properties earning average London rents, paying a headline rate of 12%, could save over £10,000 annually, potentially the difference between a viable investment and selling up.”
Prop247 has started operations with agents in London and Edinburgh and plans to expand as demand increases. The company says its technology can support large volumes of properties and is targeting a share of London’s estimated 984,000 private rental homes.
The business expects to break even once it reaches between 650 and 700 properties under management. Its longer-term target is 25,000 properties within five years. At that scale, it says bulk purchasing could further reduce costs for landlords through discounted appliances and contractor services.
