Thousands of landlords affected by sale of struggling digital lettings agency

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Thousands of landlords whose properties are managed by a leading online letting platform are to see their property management firm change hands after Howsy revealed it is to be acquired by a major high street lettings agency.

Launched in 2016 originally as No Agent but later changing to Howsy, the platform proved popular with landlords seeking a fixed-price property management fee.

It raised millions from investors of all sizes including, most recently, £800,000 raised last year and £1.4 million in government funding the year before.

But the company’s push to break even and make a profit was based, many commentators have claimed, on economies of scale that were hard to achieve and consequently, it recently turned to investor loans to keep on track. Nevertheless, most recently it announced it had achieved over 7,000 properties under management.

Howsy will continue as a going concern under its new owner with all employees retained. The purchase will be approved within two weeks.

30p a share

Shareholders, from small crowdfunders to large institutional investors, will be the main losers in the deal which will see them receive ‘at most’ 30p per share.

In a letter to shareholders sent yesterday, founder and CEO Calum Brennan has thanked them for their ‘support and belief in our mission’.

“But I am writing to you today to inform you that Howsy, its directors and its majority shareholders have agreed for the group to be acquired by a leading estate agency chain,” he says.

“This has not been an easy process or decision, but the Board believes that this acquisition is in the best interest of the business as a whole.

“This acquisition became the number one route for the board to pursue due to the speed at which the buyer could move.”

Letting agency figure Asaf Navot, founder of HomeMade, says: “Howsy tried to make a difference in an industry requiring a modern approach for customers.

“Our thoughts are with the customers and staff affected by it and we’re here to support anyone impacted by the latest news.”

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