Government pours £3 million into proptech start-up development

Chancellor Jeremy Hunt (pictured) has promised a £3 million boost to the proptech industry amid warnings of a funding slump.

The announcement was contained in the document accompanying this week’s Autumn Statement, which says the Government wants to help home movers by “improving the buying and selling process”.

Pilots to test new proptech ideas will be funded as part of the initiative, the Government says.

Committed

“As well as building the homes of the future, this government is committed to supporting home movers with a range of measures to improve the buying and selling process, including pilots to develop property tech products and digitise local council property data,” the paper says.

It was one of the few measures in the Autumn Statement designed to support the property sector.

Many commentators criticised the lack of help for the PRS and the housing market at a time when rents are rocketing and there is a slump in sales.

Spooked

Funding for tech firms servicing the residential property market has slumped by 68% over the past year as the UK’s economic difficulties have spooked some investors, The Neg reported recently.

Leading proptech figure Andrew Stanton says other factors have seen funding weaken including the sale of Purplebricks for £1, which many consider to be proptech’s lowpoint.

Stanton said that while many proptech firms are yet to break even, the millions of pounds raised during the boom years prior to Covid are keeping them going, putting off any mass collapses within the sector for the time being.

But the former agent turned tech expert said more proptech start-ups are now struggling to get second stage funding to develop their products as the housing market struggles.