Set Up a Real Estate Agency Business in the United Kingdom
Property matters take centre stage in 3E Accounting’s how to set up a real estate agency business in the UK.
A lot of people still consider real estate to be a sound investment. Unlike stocks, investing in real estate usually guarantees a favourable return on investments (ROIs) and equity growth. If you are keen on property-related activities, then a business in the real estate market is something to consider. Here’s what you need to know on how to set up a real estate agency business in the UK.
Getting Real About Real Estate
The global pandemic affected all facets of commerce and the economy, including the property market. However, statistics indicate that the UK real estate sector is bouncing back. This is partly due to Government policies, including temporary exemption from property stamp duty. Demand in this market is also expected to grow and drive the market size of GBP12 billion to greater heights.
A real estate agent conducts a variety of services related to real estate activities. These include:
- Transactions for residential and commercial properties
- Sale or rental of properties
- Advice, appraisals auctions as well as escrow services
Starting off with a business plan will facilitate a clearer understanding of your business objectives, financials, and strategy. A crucial question to consider is if you want to focus on residential or commercial properties. Residential estate agents usually deal with the selling, buying, or leasing of homes. Commercial real estate usually covers empty properties such as shop lots, industrial warehouses, etc. Each category is unique, and a good agent will have in-depth knowledge of legislation. This can include planning and zoning laws, contractual laws between landlord and tenant, etc.
It is also advisable to research which business entity suits your budget and objectives. This can be a sole proprietorship, partnership, or limited company, three of the UK’s most popular business structures. To register your business with HRMC, the UK’s tax authority and file return according to the financial year-end date.
As you are just starting out, renting a serviced office might be a budget-friendly option. In fact, all you really need is desk space and an excellent website for your business. E-commerce has made online business the norm rather than the exception. Further, you will be spending most of your time out on-site visits with clients.
An essential investment to consider is insurance, both for yourself and your business. Some of the necessary coverage includes personal insurance and especially professional indemnity insurance. This provides cover should your professional advice turn out to be awry.
Permits and approvals need to be seen before starting your business. This can include a licence for signboard, etc. However, the UK does not currently have strict credentials for real estate agents. There are no specific real estate agent license or qualification that needs to be earned before starting your business. Reform proposals are in the works, so it is prudent to keep up to date with changes. The National Association of Estate Agents’ website has some great resources and updates on real estate matters.
For help in getting started with your real estate agency, get in touch with 3E Accounting. Our team of experts can guide you on how to set up a real estate agency business in the UK. 3E Accounting’s customisable company formation packages offer innovative solutions to all your business needs. If you are ready to get the ball rolling, Contact 3E Accounting today.