REPORT

January 30, 2025

January 30, 2025

The Opportunity for PropTech

'The Opportunity for PropTech' is a report in partnership with the UK PropTech Association, and commissioned by the Ministry of Housing, Communities and Local Government (MHCLG). It evidences supply, private and public sector demand, and benefits of PropTech solutions in the UK, and identifies ways in which the property industry, government, and PropTech ecosystem can collaborate to support the sector.

This report explores the transformative potential of PropTech in addressing critical challenges within the UK built environment, such as delivering new homes, decarbonising buildings, and regenerating neighbourhoods. while also providing data and insights into the PropTech supplier landscape, market dynamics, public and private sector demand patterns for PropTech solutions, and detailed evidence about the benefits of deploying PropTech for problems across the asset lifecycle. 

The report aims to build an evidence base and serve as a foundation for the PropTech ecosystem, industry, and government to:

  1. Leverage sector understanding to co-design and implement evidence-based PropTech interventions
  2. Identify tangible opportunities to test and scale PropTech solutions in the private and public sectors
  3. Identify opportunities for cross-government collaboration on intersecting problems and policy priorities

Key Takeaways:

A fast-growing, high-GVA sector with new opportunities for investment

  • The UK PropTech market operates across public and private sectors, and is primed for growth. The sector has raised over £14 billion in funding to date, employs over 40,000 people across the UK, and has the highest GVA per capita of peer sectors like FinTech and EdTech.
  • The sector has the potential to grow as much as other major UK sectors like FinTech and AdTech. If unlocked, this market could help accelerate policy targets, investment outcomes, and economic growth

Significant private and public benefits can be realised from PropTech

  • There are significant benefits to using PropTech across the built environment, such as time and cost savings in planning, conveyancing, and sustainability reporting. We’ve projected that if PropTech is used more widely across public and private sectors in the UK, there could be up to £527 million in cost savings per year from streamlining planning processes, over 60% time savings from quicker social housing maintenance, and reductions of up to 13 million tonnes of CO2 emissions across English households per year. 

Barriers and opportunities 

  • Despite the opportunities the sector presents, barriers to PropTech adoption remain high, and scaling solutions across the public and private sector is still difficult. This is particularly true for new and smaller companies. 
  • Radical collaboration across industry, government, and the PropTech ecosystem is required to shape a more strategic approach towards leveraging and supporting the sector’s potential. This includes developing a clear roadmap for action, designing and implementing new public-private partnership models, and improving the quality of outcomes data from PropTech solutions. 

To learn more about this report and its findings, please reach out to Radhika Trivedi (Senior Associate, PUBLIC) at radhika.trivedi@public.io

Partners

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UK PropTech Association

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Ministry of Housing, Communities, and Local Government

Authors

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Radhika Trivedi

Associate

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Johnny Hugill

Director of Commercial, Spend & Impact

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