Dwelly has completed its 10th acquisition of 2026, buying London sales and lettings agency Paramount Properties as it expands in the private rented sector. The deal adds 1,100 fully managed properties to its network.
The 10 deals have built a portfolio of more than 15,000 properties under management, which the company says makes it one of the UK's largest lettings businesses. Earlier acquisitions this year include Goodwin, Lime Property, Albery Tyson, Elliot Oliver, Move, Eden Harper, AP Morgan, Settio and Shaws. Dwelly also recently secured $170 million in new funding from investors including EQT Growth and General Catalyst, to support its acquisition strategy and investment in AI.
Private rented sector faces cost and regulatory pressure
The deals come after two years of negative sentiment towards the industry. Some landlords have left, regulation has increased, operating costs continue to rise, and compliance requirements have become more demanding, while the Renters' Rights Act has reshaped the landscape. Dwelly argues that the long-term fundamentals look very different from the short-term headlines.
The company's analysis of historic government housing tenure data shows the private rented sector has grown significantly since 2000. Privately rented homes accounted for 12.5% of the combined owner-occupied and privately rented housing stock that year, compared with 23.3% today, meaning the sector's share has almost doubled. In absolute terms, the number of privately rented homes has risen by almost three million, from 2.089 million in 2000 to 5.030 million.
A more professional sector
Dwelly also believes the market is evolving. Some smaller landlords have exited in the face of increasing regulation, taxation and higher operating costs, but the company says those who remain increasingly operate on a more professional footing. They rely more heavily on experienced letting agents able to handle a complex legislative landscape, and Dwelly expects that trend to accelerate as the Renters' Rights Act takes hold.
The company argues the reforms are raising, rather than reducing, the value of agents who can deliver high-quality, compliant property management at scale. For landlords, it says professional expertise is becoming more important than ever, while for agents, operational efficiency is becoming as critical as local market knowledge.
Dwelly sees technology playing a growing role in that shift. Its AI platform is designed to automate much of the administrative burden around compliance, maintenance, communication and day-to-day property management, which the company says frees experienced teams to spend more time advising landlords, supporting tenants and building client relationships. It says this combination of technology and local expertise explains its acquisition activity through 2026.
"If you judged the private rented sector purely by the headlines, you'd probably conclude it's a market to avoid," said Sam Humphreys, head of M&A at Dwelly. "Our view is very different.
"We think the industry is becoming more professional, not less attractive. Whilst some landlords have understandably decided that today's regulatory environment isn't for them, those who remain need more support than ever before and that only increases the importance of high-quality letting agents.
"When you step back and look at the long-term picture, Britain's rental market has almost doubled as a proportion of the housing market over the last 25 years. That's not a shrinking sector - it's one that's matured significantly and continues to play a vitally important role in meeting housing demand.
"Our acquisition activity this year reflects that belief. We see enormous long-term opportunity in helping great local agencies become even stronger. Technology is a key part of that because it removes much of the growing administrative burden from agency teams, allowing them to focus on the advice, relationships and expertise that landlords and tenants value most.
"For us, AI isn't replacing the letting agent. It's enabling the professional letting agent to become even more valuable."
