Starting a real estate company in the UK might seem like a big task, but if you break it down into steps, it’s much more manageable. There’s paperwork, legal stuff, and planning involved, but if you’re serious about it, you can get up and running with a solid foundation. Here’s a step-by-step guide to help you get started.

Step 1: Do Your Research

Before jumping in, spend time understanding the real estate market. Look into property trends, demand in different areas, and the types of services estate agencies provide. Some companies focus on residential sales, others on lettings, and some handle commercial properties. Knowing where you want to fit in will shape the rest of your business.

Step 2: Create a Business Plan

A well-thought-out business plan is essential. This is where you outline your company’s goals, services, pricing, and target market. You’ll also want to include:

• A financial plan, covering start-up costs and projected earnings
• Marketing strategies
• Competitor analysis
• Operational plans (such as office location and staffing needs)

Lenders and investors will expect a strong plan, so it’s worth putting in the effort to get this right.

Step 3: Choose a Business Structure

In the UK, you’ll need to decide on a legal structure. The most common options are:

• Sole trader – Simple to set up but you’re personally liable for debts.
• Limited company – Offers more legal protection but involves more paperwork.
• Partnership – Good if you’re starting with someone else.

Many estate agencies choose to register as limited companies to separate business finances from personal finances.

Step 4: Register Your Business

Once you’ve settled on a structure, you’ll need to register your business. If you’re setting up a limited company, you’ll need to register with Companies House. You’ll also need to register for tax with HMRC.

For estate agents, you must also sign up with HMRC for anti-money laundering (AML) supervision. This is a legal requirement, and skipping it could land you in trouble.

Step 5: Get the Right Licences and Certifications

Unlike some countries, the UK doesn’t require estate agents to hold a specific licence. However, there are legal obligations you’ll need to meet:

• Join a redress scheme – Either The Property Ombudsman (TPO) or the Property Redress Scheme (PRS). This ensures customers have a way to complain if things go wrong.
• Register with the Information Commissioner’s Office (ICO) – If you handle personal data (which you will), this is a must.
• Professional memberships – While not mandatory, joining organisations like the National Association of Estate Agents (NAEA) or Royal Institution of Chartered Surveyors (RICS) adds credibility.

Step 6: Set Up a Business Bank Account

Even if you’re a sole trader, it’s best to keep business finances separate from personal ones. A business bank account helps with tax calculations and makes your company look more professional.

Step 7: Get Insurance

Real estate involves handling large transactions, so you’ll want to protect yourself. Common types of insurance include:

• Professional indemnity insurance – Covers you if you give incorrect advice or make a mistake.
• Public liability insurance – Covers claims if someone is injured at your office.
• Employers’ liability insurance – Legally required if you hire staff.

Step 8: Build Your Online Presence

Most people search for properties online, so having a strong digital presence is key. At a minimum, you’ll need:

• A professional website with property listings
• Social media profiles (Facebook, Instagram, LinkedIn, etc.)
• Listings on property portals like Rightmove and Zoopla

Investing in SEO and digital marketing can help you get noticed.

Step 9: Sort Out Your Office Space

Some estate agents work from home, but if you plan on meeting clients regularly, a physical office makes sense. Think about whether you need a high-street presence or if a serviced office would work.

Step 10: Hire Staff (If Needed)

If you’re starting small, you might handle everything yourself. But as you grow, you’ll likely need staff. Estate agents, admin assistants, and marketing professionals can all help your business run smoothly.

Step 11: Start Marketing and Generating Leads

Once everything is set up, it’s time to find clients. Consider:

• Networking with local property developers and mortgage brokers
• Running targeted online ads
• Door-to-door leaflet drops
• Engaging with potential clients on social media

Word of mouth is powerful in real estate, so providing great service can lead to referrals.

Step 12: Keep Up with Industry Regulations

Estate agency laws and regulations change from time to time. Stay updated by keeping an eye on government guidelines and industry organisations. Regular training and professional development can also help you stay ahead.