On the rise! Number of property firms up 20%

The number of property businesses in the UK has increased over the past five years despite economic challenges.

Business owners have had to navigate Brexit, a global pandemic and now the cost of living crisis to name a few issues but that hasn’t stopped many setting up shop in the property sector, including estate agencies.

Analysis of Office for National Statistics company data by Business Name Generator found the number of property businesses in the UK has risen by 19% in the past five years.

This has resulted in more than 17,500 additional new companies in the sector. From 2021 to 2022 alone, over 5,000 new property businesses joined the industry.

The research doesn’t identify how many property businesses have closed in that period.

The property sector has experienced the second-largest growth rate out of all UK industries in the past five years, ahead of sectors including construction, food services and retail but behind transport and storage.

Despite this increase, Business Name Generator warned the sectyor still faces economic challenges and said recruitment and retention of employees is a growing issue. 

Chloe Chai, a spokesperson for Business Name Generator, said:  “The 19% increase in the number of companies in the UK property industry is a positive sign of growth and resilience in the face of economic challenges. 

“However, as we look ahead to 2023, property businesses must remain vigilant and proactively address financial constraints to continue this upward trajectory. It's important for companies to seek out new opportunities and adapt to the changing market to maintain this growth and stay competitive in the industry.

“With predictions that the housing market will experience a slowdown in the year to come, residential property businesses in particular should focus on ensuring they are in a position to adjust to a more turbulent market.”