How to Start a Real Estate Business in the UK [2025]

Thinking of diving into the UK property world? Starting a real estate business in 2025 could be one of your smartest moves yet. From booming regional housing markets to major legal reforms, the real estate industry is brimming with opportunity, but only if you know how to navigate it.

The market's current momentum makes this sector particularly attractive for freelancers looking to monetise their property knowledge, investors seeking recurring income through lettings or buy-to-let models, and full-time entrepreneurs who are ready to scale operations.

Understanding the market

The UK property market remains robust despite ongoing economic shifts. In March 2025, annual house price growth stood at 6.7%, with transaction volumes more than doubling compared to the previous year. 

Improved mortgage affordability, driven by lower interest rates, has empowered buyers, while a growing supply of homes on the market is adding to buyer choice.

There is a significant shift in regional demand.

High-demand regions such as the North East and North West of England, along with major cities like Manchester, Bristol, Leeds, and parts of Scotland, are seeing rapid growth.

London is also rebounding, particularly in boroughs like Camden, Hackney, and Wandsworth, driven by returning office workers and international buyers.

Who is your ideal buyer?

Demographic shifts are also influencing demand.

Millennials and Gen Z are entering the market in greater numbers, prioritising affordable, flexible, and sustainable homes with smart technology features. 

Meanwhile, Baby Boomers are downsizing to smaller, amenity-rich homes, especially in quieter suburban areas. 

Population growth, smaller household sizes, and urban-to-suburban migration are pushing up demand in secondary markets and commuter towns.

Moreover, younger buyers are increasingly tech-savvy and sustainability-focused. 

They expect energy-efficient appliances, smart home tech, and properties built with eco-friendly materials. Areas embracing green construction and smart city infrastructure are outperforming slower adopters.

Legal requirements and company setup

If you plan to start a real estate business in the UK, you need to register your business, especially if you intend to offer property services, manage lettings, or generate income from property transactions. 

Setting up as a limited company is typically the best choice for liability protection and tax efficiency.

Here is a comparison of legal structures to help you choose the right one:

Legal compliance depends on your chosen business model.

Estate agents must comply with the Estate Agents Act 1979, the Consumer Protection Regulations, and GDPR. 

AML registration with HMRC is mandatory, and updated standards in 2025 are increasing enforcement.

What’s new in Property Law?

If you plan to manage or let out properties, you may require a local authority licence, especially for HMOs. 

🔸 Developers need planning permission, must comply with fire and structural safety laws, and should be aware of the upcoming second staircase rule for residential blocks over 18 meters, effective from 30 September 2026.

🔸 Landlords and developers also face new obligations. The Building Safety Levy will take effect in autumn 2026, and the Renters' Rights Bill introduces sweeping changes, including the end of no-fault evictions, limits on rent increases, and strengthened tenant protections.

🔸 Commercial property businesses should follow reforms related to leasehold and commonhold conversion, landlord insurance transparency, and enhanced energy efficiency standards. The Terrorism (Protection of Premises) Act will also impose new security obligations on qualifying venues by 2027.

To operate legally and securely, you must also obtain professional indemnity and public liability insurance.

Costs and finances

Starting a real estate business requires upfront investment. Your costs will vary depending on your business model and scale of operations, but here is a general idea:

Ongoing costs include subscriptions to CRM platforms and listing services (£20 to £200/month), insurance renewals, and salaries if you hire staff. You may also need to invest in professional development and legal consultations, especially with ongoing legislative changes.

Profit margins depend on your model:

✅ Simplify payroll with ANNA Payroll

If you’re planning to hire employees or pay yourself a director’s salary, ANNA Payroll offers an HMRC-recognised, easy-to-use payroll solution. 

It calculates tax, pension contributions, and student loan repayments automatically, generates payslips, and even files to HMRC in just a few clicks. 

You can try it for only £3/month for the first three months.

Client acquisition strategy

Getting your first clients as a real estate business owner takes persistence, strategic marketing, and a local presence. Effective ways to attract clients you can try:

Credibility boosters:

➤ Platforms you can try out:

Operations and capabilities

Running a real estate business requires a strong foundation in client communication, legal knowledge, and day-to-day operational management. You’ll need to balance fieldwork with desk work, and stay organised to keep everything running smoothly.

Here’s what daily operations typically involve:

What skills do you need to succeed?

1. You should have strong negotiation and communication skills, as these are essential when dealing with buyers, sellers, landlords, and tenants. 

2. Attention to detail is crucial when handling legal contracts and compliance documents. 

3. A good grasp of digital tools, including CRM software and marketing platforms, will also make your job and life easier.

Should you hire staff or operate solo?

Many real estate professionals start out solo to reduce costs and build client relationships directly. 

As your portfolio grows, you may consider hiring a part-time assistant, a freelance photographer for property photos, or a junior agent to support showings and admin tasks. The decision often depends on your volume of work and growth strategy.

How much time does it take?

Expect to work full-time hours, especially during the early stages. 

Evening and weekend availability is often necessary to accommodate clients. If you're managing multiple properties or working across different regions, you’ll also spend time travelling between viewings and meetings.

So, remember to have systems in place that will help you stay efficient and avoid burnout.

Tools, systems and automations

Automation is particularly useful for staying on top of admin tasks while you focus on clients and property management.

Here are some essential tools to consider:

Why a business account matters

Using a dedicated business bank account (such as one from ANNA) helps separate your personal and business finances, streamlines your expense tracking, and enables smoother accounting. If you register your company through ANNA, you’ll get access to tools that simplify VAT returns, payroll, and tax reminders.

How to automate admin and marketing

Automation doesn’t mean removing the personal touch; it simply means freeing up your time from repetitive tasks. For example:

The more you automate these small but frequent actions, the more time you can spend on building relationships, closing deals, and growing your portfolio.

Final tips and common mistakes

Learn from the experiences of others and avoid common pitfalls that cost time, money, and credibility.

Lessons from the field:

Avoid these common mistakes:

Quick launch checklist:
✔️ Register your company with ANNA
✔️ Get AML registered and sort insurance
✔️ Build a clean, mobile-friendly website
✔️ Set up a CRM and booking system
✔️ Draft template contracts and service packages
✔️ Launch local ads and begin outreach

Try ANNA today and get your real estate business up and running with less admin and more time closing deals.