Surge in new real estate firms points to renewed confidence in property market, new research finds

New research by Cynergy Bank has highlighted the UK real estate sector as the top performer for business creation in the fourth quarter of 2025.

Drawing on the latest ONS data for the fourth quarter and full year of 2025, Cynergy Bank’s most recent Business Births and Deaths Index shows that 13,885 new real estate businesses launched during the year, the highest annual total since the dataset began in 2017.

After accounting for closures, the sector added a net 4,400 new businesses in 2025, again the strongest result on record and what Cynergy Bank says is a clear sign of sustained confidence across the property industry.

These figures translate into a Cynergy Bank Business Health Score of 1.46 in Q4 2025, the highest of any sector in the economy. The score measures the ratio of new businesses created to those lost, with values above 1 indicating expansion.

Real estate has now recorded growth in every single quarter since at least 2017, making it the most consistently expanding sector tracked by the Index. Over the past eight years, the industry has delivered a net gain of around 29,000 firms, which Cynergy says underlines its long-term resilience despite economic volatility, higher interest rates and regulatory change.

The report finds that the sector’s performance in 2025 likely reflects strengthening conditions across both residential and commercial markets. Housing activity has picked up as affordability stabilises and price growth returns in some regions, supporting demand for agency services.

At the same time, commercial real estate has seen renewed investment and lending activity across offices, retail, industrial and operational sectors, according to Cynergy, creating opportunities for leasing, management and advisory firms. Continued demand in the rental and build-to-rent markets, alongside improving business confidence, has helped drive expansion across the sector.

Nick Fahy, CEO of Cynergy Bank, said:“Real estate continues to stand apart from the rest of the economy. The sector has grown every quarter for eight consecutive years and delivered record levels of new business creation in 2025.”

“That consistency reflects the depth of demand for property across the UK and the adaptability of businesses operating in the sector, even against a challenging economic backdrop.”