The number of estate agency businesses in the UK is predicted to increase by just over 4% in 2026, according to new research from Property DriveBuy.

The forecast is based on analysis of Office for National Statistics data covering the period from 2017 to 2025, examining changes in the number of active estate agency businesses across the UK and its regions.

Property DriveBuy’s analysis shows there were 25,665 active estate agency businesses in the UK in 2025, up 2% on the 25,155 recorded in 2024.

Regional data shows the strongest annual growth in 2025 was in the West Midlands, where the number of agencies increased by 6.1%, followed by the East of England at 2.8%. Other regions recorded more moderate increases, including London (2.2%), the East Midlands (2.2%), Yorkshire and the Humber (2.1%), the North West (2.1%) and Scotland (2%). The North East was the only region to record a decline, with agency numbers falling by 0.8% year-on-year.

The number of estate agency businesses has increased every year since 2017, with the UK total now almost 6,400 higher than eight years ago.

Using this historical data and an exponential growth forecasting model that accounts for seasonality, Property DriveBuy estimates that the number of estate agency businesses could rise by a further 4.1% in 2026, taking the total to approximately 26,705.

Steve Foreman, founder and CEO of The Property DriveBuy, commented: “As more agents enter the market each year, we’re seeing competition intensify, forcing everyone to raise the bar. This is great for the standard of estate agencies delivered in the UK, but it also means that agents need to work incredibly hard to stand out from the crowd. It’s no longer just advisable to try and differentiate yourself; it’s essential.

“Agencies that succeed in this environment are the ones embracing innovation, adopting new technologies, and finding eye-catching ways to reach and engage audiences – particularly with the emergence and evolution of AI-powered operational improvements. But most importantly, they’re focused on delivering exceptional client experiences and maximising the value of the service they provide.

“Increased competition is healthy because it drives progress and demands that agents find ways of optimising the service they provide. We believe that PropertyDriveBuy, and its pioneering geo-location property search, enables agents to do just this.

It is revolutionising the property portal to present for sale properties directly to potential buyers at the precise moment when the opportunity for engagement is at its strongest. This means agents can present homes to customers in a more impactful and useful way than has ever previously been possible and, in doing so, help sellers get a good price in a shorter timeframe.”