The number of companies operating within the property sector increased by 2.7% between 2022 and 2023 making it the fastest growing business segments within the UK.

Official data analysed by business bank account comparison site money.co.uk shows that there were 113,785 companies working within property last year including estate agencies and property management firms, in both residential and commercial. This is a 2.85% increase from 110,710 businesses in 2022 and includes the most recent launch, Blackbear Properties in Pembrokeshire (main pic).

In terms of growth, such high growth puts property at No.1 ahead of the health, entertainment, education and construction sectors.

A spokesperson for Money.co.uk says: “This growth could be due to strong demand in the property market, driven by recovery from the COVID-19 pandemic.

“On the other hand, the rental market has encountered challenges due to the cost of living crisis and the burden of soaring interest rates for landlords.

“This is causing many landlords to sell their properties and leave the market.

“Despite this, recent forecasts show that some regions are predicted to see average rents grow 11.7% by 2027, even with interest rates expected to fall.

“This suggests that the rental sector will remain resilient and that the longer-term picture may be brighter.”

Robust

The commentary is backed up by the latest CBRE report into the residential market, which says that robust wage growth and falling interest rates will mean mortgage affordability improves throughout 2024.

“The mortgage market is also becoming increasingly more competitive, which will benefit homebuyers and those remortgaging next year,” it says.

“On balance, home sales won’t rebound significantly, but the improved backdrop will underpin demand.

“Transaction volumes will still be below the long-term average in 2024 but remain broadly level to 2023. Buyers’ budgets will recover to an extent, albeit this won’t support house prices at their current level, with a further 1% fall forecast in 2024.”