Property industry experiences second-highest growth rate of UK industries in last 5 years
Property industry experiences second-highest growth rate of UK industries in last 5 years, according to research by Business Name Generator (BNG).
Analysis of government data highlights growth in the property industry in response to high demand, but the sector will need to be flexible in the face of 2023 challenges.
New analysis reveals the resilience of the property sector, experiencing a surge in business numbers over the last five years despite economic challenges.
The number of property businesses in the UK has risen by 19% in the last five years – resulting in over 17,500 additional new companies in the sector. From 2021 to 2022 alone, over 5,000 new property businesses joined the industry.
The findings were collated by BNG, using data from the Office of National Statistics’ (ONS) report on UK business activity. The analysis uncovers the industries that have shown the most growth in recent years.
Property has experienced the second-largest growth rate out of all UK industries in the last five years, ahead of sectors including construction, food services and retail.
Top 5 industries by business number surge over last five years:
1. Transport and storage – 26.42%
2. Property – 18.81%
3. Construction – 17.23%
4. Accommodation and food services – 16.56%
5. Retail – 13.95%
Despite this increase in UK property businesses, the sector is set to continue facing challenges. According to the Inside Housing Risk Register Survey, 47% of housing associations flagged external economic conditions as a strategic risk. Recruitment and retention of employees is also a growing issue to many landlords.
The need to recruit, train and retain staff in this growing industry is increasing and poses a cost implication for new and existing businesses.
Chloe Chai, spokesperson from BNG, says:
“The 19% increase in the number of companies in the UK property industry is a positive sign of growth and resilience in the face of economic challenges.
“However, as we look ahead to 2023, property businesses must remain vigilant and proactively address financial constraints to continue this upward trajectory.
“It’s important for companies to seek out new opportunities and adapt to the changing market to maintain this growth and stay competitive in the industry.
“With predictions that the housing market will experience a slowdown in the year to come, residential property businesses in particular should focus on ensuring they are in a position to adjust to a more turbulent market.”
Kindly shared by Business Name Generator (BNG)
Main article photo courtesy of Pixabay
