MEIF - Proof of Concept

Proptech firm raises funds to disrupt lettings industry

A proptech company which aims to disrupt the lettings industry has raised £750,000 to help establish itself as the leading rental platform for landlords and tenants.

lettingaproperty.com has secured investment from the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, and Mercia’s EIS funds.

The funding will enable it to further enhance its technology and build its subscriber base in the run-up to a Series A investment round next year. The company, which is based in Henley-in-Arden, plans to create around 15 new jobs in the next 18 months.

lettingaproperty.com is one of the UK’s longest established online lettings companies and offers landlords a full suite of services including finding tenants, digital referencing, tenancy creation, rent protection and home emergency cover. It claims that its landlords save on average 50% compared to the cost of using a high street lettings agency.

The company was founded in 2008 by Jonathan Daines, who was previously lettings director for a high street estate agency chain, and his brother Matthew, former director of quality for Singapore’s Marina Bay Sands hotel with Kevin Neary, co-founder of games retailer GameStop Group, as Chair. As part of the deal, Matthew Farrow – the former finance director of online estate agency PurpleBricks – has been appointed as Interim Finance Director to oversee future business scaling.

lettingaproperty.com increased subscribers by 100% in 2021, raising revenue to over £1m and is on course to reach £1.6m in the current year. It now manages almost 1,500 rental properties across England, Scotland and Wales.

Jonathan Daines, the CEO, said: “Our ambitious vision started back in 2008 and is gathering real momentum, supported by this investment plus key board appointments. We are excited about our future growth potential and the opportunity to disrupt the traditional high street lettings model. We aim to make renting out your property long-term as easy as filling your holiday let on Airbnb, and become the go-to choice when renting out property.”

Stephen Windsor of Mercia added: “Jonathan has used his experience in property management to digitally enhance each step of the tenancy journey. lettingaproperty.com is one of the longest-established rental platforms and is unique in that its technology is backed by an experienced lettings team. The investment will enable the company to scale the business faster and cement its position in the market.”

Ken Cooper, Managing Director at the British Business Bank, said: “The MEIF continues to back innovative companies looking to expand and develop within their industries. This funding will support the creation of new jobs in the region, while allowing lettingaproperty.com to invest in expanding its tech offering. Other companies looking to follow a similar growth plan are encouraged to consider MEIF funding.”   

Sean Farnell, Board Director at Coventry and Warwickshire Local Enterprise Partnership (CWLEP), said:

“Leading innovation is one of the key pillars of CWLEP’s Strategic Reset Framework and it is important the area’s business community continues to develop and grow to attract investment and encourage cluster growth. Warwickshire businesses such as lettingaproperty.com are embracing digital technology to become leaders in their field and this new funding will play a pivotal role in their future expansion.”

The Midlands Engine Investment Fund is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.