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.

ENDS

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Mercia Asset Management PLC

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About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£800million of assets under management and, since its IPO in December 2014, has invested over £96million into its direct investment portfolio. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –

• Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
• Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
• EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560

www.mercia.co.uk

About the Midlands Engine Investment Fund (MEIF)

The Midlands Engine Investment Fund, supported by the European Regional Development Fund, will invest in Debt Finance, Small Business Loans, Proof-of-Concept and Equity Finance funds, ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.

The Midlands Engine Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.

The Midlands Engine Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.

The MEIF covers the following LEP areas: Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands; and Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire, Leicester and Leicestershire, and South-East Midlands in the East and South-East Midlands.

The project is receiving up to £78,550,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The programme will continue to spend to the end of 2023.

The Department for Levelling Up,  Housing and Communities is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.

The European Investment Bank is providing £122,500,000 to support the Midlands Engine Investment Fund. This follows backing for the Northern Powerhouse in 2017 and backing for the newly launched North East Fund. For further information visit www.eib.org

The funds in which Midlands Engine Investment Fund invests are open to businesses with material operations in or planning to open material operations in the West Midlands and East & South-East Midlands.

The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at https://thebusinessfinanceguide.co.uk

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support nearly £8bn^[1] of finance to almost 94,800 smaller businesses^[2]. Since March 2020, the British Business Bank has also launched four new Coronavirus business loan schemes, delivering almost £73bn of finance to around 1.6m businesses.

As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.

In light of the coronavirus pandemic and EU Exit, the Finance Hub has expanded and it now targets a wider business audience. It continues to provide information and support for scale-up, high growth and potential high growth businesses, but now provides increased content, information and products for businesses in survival and recovery mindsets. The Finance Hub has been redesigned and repositioned to reflect this, during this period of economic uncertainty.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for the group can be found at www.british-business-bank.co.uk.

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^[1] Figures as at end of June 2020

^[2] Figures as at 28 January 2021

About lettingaproperty.com

lettingaproperty.com is the UK’s longest established online lettings company and a proptech innovator. Founded in 2008 by Jonathan Daines, lettingaproperty.com was formed to address the shortcomings of traditional lettings, providing greater control and transparency for landlords and tenants.

With passion and integrity, lettingaproperty.com has helped thousands of landlords to understand and manage the lettings process online for almost 15 years. During this time, the team has developed a deep understanding of landlord and tenant needs, supporting development of an innovative lettings platform.

The platform helps landlords manage the entire rental process from their personal dashboard – including advertising, viewings, referencing, tenancies, payments, legal compliance and more – giving greater control, security, and visibility.

Landlords choose from a range of lettings plans, with benefits including getting rent paid on time – whether tenants pay or not – plus legal protection, home emergency cover, and expert lettings support – all for a low, fixed monthly fee.