Agents address skills shortage with automation and AI – even as real estate job growth rate slows
Agents across the UK are turning to AI and automation to combat a skills shortage in the industry, according to analysis by leading PropTech provider Reapit. This comes as the number of payrolled people working in real estate is growing at its slowest pace since the COVID-19 pandemic.
The company's inaugural Property Outlook Report 2025 reveals that most agencies that are hiring are struggling to recruit. More than half of the agencies hiring were receiving fewer than five qualified applicants per vacancy, despite the highest unemployment rate since May 2021.
This slowdown comes amid rising employer costs in the face of higher National Insurance contributions and the upcoming Employment Rights Bill, which restricts zero-hour contracts while giving employees extra protection from dismissal and redundancy.
In short, agencies are still hiring but not finding enough applicants despite rising unemployment and employment costs, resulting in the slowest growth of employment in real estate in years.
Skills shortage impacting job growth?
According to the latest data from the Office for National Statistics (ONS), the number of UK payrolled real estate employees grew by just 1% between July 2024 and July 2025. This is the weakest year-on-year increase since May 2021, when payrolled employee growth stood at 0.9% amid the global pandemic.
At the same time, agencies are facing a growing skills shortage and increasingly turning to PropTech, automation and AI to improve efficiency. Reapit's report showed that more than 50% of those surveyed reported increased use of time-saving technology, while nearly 80% believe it's cheaper to invest in automation than to increase headcount. A further 69% say it's also more productive.
The company points out that, while these technologies can fill a skills gap, the real benefit of technology efficiencies is not to replace humans but enable higher value-add – whether there's a skills scarcity or not.
"As we see today with Reapit's existing embedded AI, agencies aren't using it to replace employees but to assist, helping them prioritise the key parts of the job that need the human touch." Explains Dr Neil Cobbold, Commercial Director at Reapit UKI. "Our upcoming Reapit AI will go further than the automation and traditional AI we have within the platform today. We're developing autonomous, self-learning AI agents designed to support specific tasks and processes within a business and the wider industry, not just generic estate agency activities. These agents will serve as digital companions to real-life estate agents by managing tasks, offering recommendations, and continuously learning from what proves effective, while crucially leaving property professionals in control."
The next generation
But how does the industry view technology?
A third of property professionals surveyed said PropTech is central to their businesses' drive for greater profitability, ahead of cutting costs or raising fees. Reapit says this marks a "cultural shift" in how technology is valued across the sector.
AI, while still in its infancy across real estate, is gaining acceptance. Just 2.7% of respondents said it would have a negative impact on their roles over the next five years, while 41.5% thought it would be a net positive. The majority were neutral, suggesting full AI adoption will take time.
The report also highlights a generational shift. While 76% of agents plan to stay in the sector for five years or more, a significant number either intend to leave the sector or retire. As seasoned professionals retire, agencies will need to replace not just people, but decades of operational knowledge, particularly as regulatory pressures mount.
Leasehold and Freehold changes, the Renters' Rights Bill, EPC reforms, ongoing anti-money laundering and other compliance obligations are increasing the complexity of day-to-day operations across sales and lettings for agents across the UK. Fortunately, agents can very effectively use AI and automation to free up time to focus on addressing new compliance requirements to protect their customers.
What does the future hold?
Despite current employment challenges, most agents remain upbeat. The report found that growth remains a focus: the top strategies for 2025 include increasing managed rentals, boosting property sales, and adopting tools that save time.
Commenting on these findings, Cobbold explains that the findings show an industry that is pragmatic, resilient and looking to innovate.
"While the nature of the current skills scarcity will become clearer over time, it is clear that agencies are still prioritising growth, and new hires are a vital part of the equation.
Admittedly the slowdown in payrolled employment growth in real estate is only partly due to a lack of skilled applicants – it also reflects broader cost pressures from National Insurance tax rises and regulatory uncertainty from the Employment Rights Bill that businesses across the economy are facing. But property professionals aren't letting it hold them back. Our report shows that many of them are embracing tech and AI to stay productive and profitable.
"It's clear that automation and AI are no longer luxuries but strategic necessities to grow an estate or letting agency. We will only see this cultural shift towards faster adoption of PropTech accelerate as technology improves. Both employers and the workforce would do well to embrace the new wave of AI and automation-enablement."
