I once predicted that 2024 and then 2025 would be huge years for M&A activity in the estate agency sector. Turns out I was right (it sometimes happens).
We have seen and we are seeing the gradual consolidation of the sector where corporate types are buying semi-corporates – think Lomond and KFH, Foxtons and Ludlow Thomson. But also where smaller businesses are being snapped up by ambitious independents, keeping the likes of Lucy Noonan of Atomic Consultancy and new kids on the block, Dwelly, very busy indeed.
Connells are back in the buying game too with six acquisitions this year to date.
But one of these sharp-elbowed players may just have boxed themselves into a corner given its uber enthusiasm for gobbling up rivals. Has it bitten off more than it can chew?
Well, rumours are swirling that Dexters may have unintentionally over-saturated its London territories by buying way too many branch offices with these now too close to one another for commercial comfort.
In April 2025 alone the business is said to have bought four agencies – Keatons, James Alexander, Homesite and Cube as well as opening two new offices organically. These add to Marsh and Parsons, perhaps its most notable addition, in 2023.
Example areas in what might be seen as over-expansion are, for instance, Brockley, SE4 where there are FOUR Dexters owned offices selling into that one area – Dexters, Keatons, Conran and Roy Brooks.
Also, Lewisham has FIVE offices competing – Dexters, Keatons, M&P, Sebastian Roche and Roy Brooks.
East Dulwich four – Roy Brooks, Dexters, Keatons, M&P.
Hackney three – M&P, Conran, Dexters.
‘Greed is good’, said my second biggest hero in life, the social entrepreneur Gordon Gekko.
But this is surely more a Bond-villain like megalomania? In fact I hear that Dexters’ head office will soon move to a lair under a volcano with a shark infested swimming pool to greet visiting adversaries? Its COO, a titanium-toothed giant adorned with razor-brimmed headgear dispensing with under-performing managers and listers decisively. Probably.
The consequence of such a Starbucks like strategy – a ‘one on every street corner’ approach (my words not theirs) is that these offices begin to compete with each other.
And I hear that they are doing exactly that. Aggressively.
Now, my supposition here is pure conjecture and I’d love to hear Dexters’ take on this. But from what I perceive (this is an opinion piece after all) the effect is that in some areas of the capital the group is at war with itself with M&P undercutting Keatons branches on fees, undercutting Dexters branches and vice versa.
The Dexters Group now has over 180 offices in London and is funded by Oakley Capital, an investor that gave King, Shepherd and Co £130m in 2023 for expansion. One day they will want that back – with Wonga like interest bolted on.
A key metric for investors apart from the obvious total revenue and net profit numbers is income per transaction. If this is under pressure due to ‘blue on blue’ skirmishes, Oakley won’t be happy given that ultimately their goal will be for the group to be in good financial shape to sell or to float soonest.
Are fees per listing/completion suffering? If anyone wants to drop me a line from within the aforementioned volcano to confirm so, please do so and be assured of my discretion. I am licensed to spill – but only if my sources want me to.
Russell Quirk is the highly opinionated property industry personality and co-founder of PR agency ProperPR. His opinions are of course his own.
