PropTech provider Reapit says its latest industry survey suggests agents are increasingly turning towards AI and other technology to combat a skills shortage.
In its inaugural Property Outlook Report it finds 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.
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 shows 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.
In terms of how the industry views technology the survey reveal that a third of property professionals say 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.
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, a spokesperson says: “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.”
A copy of the Reapit Property Outlook Report 2025 can be downloaded free here.
