Game-changing online letting platform set to slash landlord costs
New AI-enabled technology service promises to save London landlords thousands
A new online letting platform is set to disrupt the capital’s property management sector, offering landlords significant savings per property.
Prop247, launching this month, combines cutting-edge technology with on-the-ground agents to deliver what its founders claim is the UK’s first truly end-to-end remote letting service, at a fraction of traditional agent costs.
The platform charges a straightforward 7.5% management fee with no hidden extras, contrasting sharply with London’s traditional agents who advertise headline rates of 10-15% but can charge effective rates exceeding 20% once other charges are factored in.
“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 Scottish property agency DJ Alexander. “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 platform automates the entire lettings process, allowing tenants to book viewings 24/7, submit applications out of hours and track maintenance requests in real time. Landlords receive instant notifications and full visibility of all property activity, whilst the system automatically coordinates contractors and handles communications.
“Many landlords fall into what Prop247 describes as the “cost trap”, where an attractive headline management fee masks a far higher actual cost,” said Prop247 co-founder Irvine Conner. “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, whose previous venture managed approximately 5,000 properties across central Scotland, developed the platform out of frustration with the technology available to the sector and its ability to perform at scale.
Backed by a seven-figure investment, the platform has been created to solve these frustrations and provide an integrated solution for landlords. It also enables Landlords with properties in disparate geographies to consolidate portfolios on a single platform.
The launch of the new business coincides with the imminent implementation of the Renters’ Rights Act which eliminates agents’ lucrative lease renewal fees in England and Wales, potentially forcing traditional operators to restructure their pricing. Meanwhile, rising costs and regulation continue to drive smaller landlords from the market.
“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 launches with agents in London and Edinburgh, with plans to expand its network as demand grows. The scalable platform can theoretically manage any number of properties, positioning it with the ability to capture a meaningful share of London’s 984,000 private rental homes.
The company projects breaking even at 650-700 properties under management, with ambitions to reach 25,000 properties within five years. At that scale, bulk purchasing power would enable further landlord savings on appliances and contractor services.
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