Analysis of government data highlights growth in the property industry in response to high demand, but the sector will need to be flexible in the face of 2023 challenges.
New analysis reveals the resilience of the property sector, experiencing a surge in business numbers over the last five years despite economic challenges.
The number of property businesses in the UK has risen by 19% in the last five years – resulting in an additional 17,530 new companies in the sector. From 2021 to 2022 alone, over 5,340 new property businesses joined the industry.
The findings were collated by Business Name Generator, using data from the Office of National Statistics’ report on UK business activity. The analysis uncovers the industries that have shown the most growth in recent years.
Property has experienced the second-largest growth out of all UK industries in the last five years, ahead of sectors including construction and retail.
Top 5 industries by business number surge over last five years:
- Transport & storage – 26.42%
- Property – 18.81%
- Construction – 17.23%
- Accommodation & food services – 16.56%
- Retail – 13.95%
Despite this increase in UK property businesses, the sector is set to continue facing challenges. The quantity of housing is one of the UK’s most pressing issues, a recent study by the Home Builders Federation warned that house building in England is due to fall to its lowest level since the second world war over the coming years.
Elsewhere, estate agents are struggling with recruitment and retention – a surge of job postings in the sector are going live online, whilst according to a Reed survey of 5000 UK workers, 47% plan to change jobs in 2023.
Chloe Chai, spokesperson from 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.”
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