Looming Budget taxes risk killing off the booming estate agent sector
The number of estate agency firms in the UK has soared, new figures show, fuelled by a wave of entrepreneurial property professionals inspired by Netflix shows such as Selling Sunset and Channel 4’s Britain’s Most Expensive Houses. The boom has been enabled by the rise of Instagram as a virtual shopfront, enabling ambitious agents to turn their social feeds into “offices” with minimal overheads.
Cynergy Bank’s latest Business Births and Deaths Index draws on ONS and Companies House data for July to September, revealing a buoyant real estate sector. During this period, 3,230 new real estate businesses sprang up across the country – outpacing 2,000 closures – and earning real estate the highest Cynergy Bank Health Score of any major sector at 1.62.
It’s not a one-off: real estate is the only sector to have grown every single quarter since 2017, racking up a net gain of 27,865 new firms in just eight years.
A likely contributor is the rapid growth in the number of estate agents. Companies House data shows that 1,624 new estate agency firms were incorporated in Q3 this year – almost matching the number of new bars and pubs (1,857) opened during the same period – and marking a 48% rise compared with the same period in 2017.
The number of estate agents has grown consistently over the past few years. There were 25,155 estate agency businesses registered in the UK in 2024. This marked a 24% jump versus 2017.
The boom has likely been enabled by the rise of social media as a virtual shopfront. According to a NAEA Propertymark (National Association of Estate Agents) survey, 79% of UK estate agents now actively use social media for property promotion, up sharply from previous years.
Nick Fahy, CEO of Cynergy Bank, said: “Estate agent numbers are booming, led by a new generation of independent firms using social media to attract clients and make their mark. This digital shift is energising the sector and opening up new opportunities.
“But as we look ahead to the Autumn Budget, there are real concerns about possible property tax rises, especially the proposed Mansion Tax and changes to Capital Gains, which could take the shine off the market for buyers and sellers alike. Any significant tax changes would risk stalling activity at the top end and could have a knock-on effect across the broader housing sector.”
Nathan Emerson, CEO of Propertymark, the UK’s leading professional body for estate and letting agents, commented:
“It’s encouraging to see strong entrepreneurial growth across the estate agency sector, with more professionals recognising the value of providing trusted, local expertise to buyers and sellers. The rise of digital and social media has undoubtedly opened new routes to the market, but ultimately, success in agency still comes down to professionalism, qualifications, and delivering for clients.
“As the sector expands, it’s vital that new entrants uphold high standards and operate within a framework that protects consumers. Propertymark continues to campaign for better regulation and mandatory qualifications across the industry to ensure consistency and trust.
“While the current momentum is positive, the UK government has a strong opportunity to help ensure housing market confidence isn’t undermined by sudden or disproportionate tax changes in the Autumn Budget. Stability and support for both agents and consumers is key to sustaining a healthy property market in the long term.”
In the wider UK economy, July to September also saw more new businesses launch (73,450) than close (63,205), resulting in positive Cynergy Bank Health Scores across most industries.
However, business closures are increasingly affecting larger firms. Companies that ceased trading in Q3 employed an average of three people (up from 2.23 three years ago) and recorded the second-highest average turnover since records began (£309,000), just below the Q2 peak of £311,000.
Sector winners: Health, Education, Hospitality, and Retail
- Health and Social Care: A Cynergy Bank Business Health Score of 1.60, likely spurred by continued NHS doctor strikes and increased public sector outsourcing to reduce waiting lists.
- Education: Strong at 1.56, thanks to ongoing government reforms, rising investment and regulatory moves encouraging EdTech and new education businesses.
- Hospitality (1.30) and Retail (1.19): Both sectors showed resilience and growth, weathering the National Insurance hikes introduced earlier this year.
Sector losers: Farming and Manufacturing
The farming industry continues to shrink at a frightening pace, with a Cynergy Bank Business Health Score of just 0.57 – meaning only half of closing farms are being replaced. Closures have been outpacing new company creation since Q2 2021 with a net loss of 9,925 farms in that time.
Manufacturing also continues to struggle, with a score of 0.94. Closures have outpaced new openings for more than four years, with the sector steadily shrinking since Q1 2021. In that time, the UK has seen a net loss of manufacturing 9,510 businesses.