“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.”
The Cynergy Bank
Business Births
& Deaths Index
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.
The number of estate agency firms in the UK has soared in Q3 of 2025, fuelled by a wave of entrepreneurial property professionals. 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.
In the third quarter of 2025, 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.
A likely contributor is the rapid growth in the number of estate agents. Companies House data shows that 1,622 new estate agency firms were incorporated in Q3 this year – almost matching the number of new bars and pubs (1,858) opened during the same period – and marking a 48% rise compared with the same period in 2017.
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.
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 Propertymark (formerly the National Association of Estate Agents, NAEA) survey, 79% of UK estate agents now actively use social media for property promotion, up sharply from previous years.
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.
Despite the broader economic picture, several industries are flourishing and continue to buck the trend
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.
Other 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.
Nick Fahy
Chief Executive, Cynergy Bank
Regional disparities
London has outperformed the rest of the country with a score of 1.23 in Q3 of 2025, closely followed by Yorkshire and The Humber at 1.19.
In contrast, Northern Ireland has experienced the most significant business closures, with a score of 0.94. This was the only region of the UK to receive a negative score in Q3 of 2025.
Annual regional data table
The below data table shows the annual Cynergy Bank Regional Health Scores for 2024-2021.
Region | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
UK | 1.03 | 0.92 | 0.87 | 1.03 |
England | 1.04 | 0.92 | 0.89 | 1.04 |
North East | 1.06 | 0.92 | 0.90 | 1.09 |
North West | 1.05 | 0.88 | 0.90 | 1.04 |
Yorkshire and Humber | 1.03 | 0.89 | 1.02 | 1.07 |
East Midlands | 0.94 | 0.85 | 0.89 | 1.01 |
West Midlands | 1.00 | 0.83 | 0.85 | 1.12 |
East | 1.02 | 0.95 | 0.87 | 0.99 |
London | 1.12 | 1.00 | 0.90 | 1.10 |
South East | 1.02 | 0.93 | 0.80 | 0.93 |
South West | 0.97 | 0.89 | 0.89 | 1.03 |
Wales | 0.95 | 0.85 | 0.88 | 0.95 |
Scotland | 1.02 | 0.92 | 0.84 | 0.88 |
Northern Ireland | 0.96 | 0.87 | 0.78 | 1.10 |
Methodology
Cynergy Bank’s report uses ONS quarterly data across 16 business sectors, available here: Business demography, quarterly, UK - Office for National Statistics . Available ONS data goes as far back as 2017.
Q3 2025 data was published on 30 October 2025. Business “births” and “deaths” are terms used by ONS. Strictly, these are enterprises added to, and removed from, the Inter-Departmental Business Register (IDBR), respectively. The IDBR is a comprehensive list of UK businesses used by government for statistical purposes.
NOTES and definitions
* Cynergy Bank’s Business Health Score divides the number of business births by the number of business deaths in any given industry to give a snapshot of overall sector health. For example, a score of 1.30 means for every one business going bust 1.3 new businesses are being created. Scores below 1 indicate more businesses are closing than being formed and the industry is in decline.
**Available ONS data goes as far back as 2017: Business demography, quarterly, UK - Office for National Statistics
*** ONS dataset for estate agents in 2024 available here: Estate agents by size and region - Office for National Statistics
**** ONS dataset on number of estate agents in 2017 available here: Analysis of enterprises in the UK in UK SIC 2007 sub classes of Division 68 Real Estate 2015-2022 - Office for National Statistics
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"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."
Nathan Emerson
CEO, Propertymark, the UK's leading professional body for estate and lettings agents
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