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In 2024, there were about 25,155 estate agency businesses registered in the UK, a 24% increase versus 2017.

From 2018 (20,720 agencies) to 2023, the number grew by 20%.

Over the past year (from 2022 into 2023) there's also been a noticeable increase, though smaller in percentage (around 1.9% to ~2%) despite market “cooling.”

Regionally, growth has been across the board. The North East has had one of the largest increases (around +30-34%), with consistently strong growth also in the North West, Scotland, London, Yorkshire and the Humber.

Why the number is rising

Based on the reports and expert commentary, some of the main reasons for the rise are:

Improving market conditions (post-pandemic bounce, demand)
After COVID-19 and associated disruptions, demand for moving house picked up, there was stimulus (e.g. stamp duty holidays), and the market saw more activity. This encouraged more entrepreneurs and small firms to set up as estate agencies.

House-price growth + more sellers
When house prices are stable or rising, people are more willing to move, sell, or reassess property, which increases demand for estate agents. Also, more people entering the seller market triggers more agents.

Mortgage affordability somewhat improving at times & interest in property investment
Although mortgage rates have increased, in certain periods mortgage affordability has improved from prior worst moments. Also, property remains an attractive investment for some, pushing activity.

Low barriers to entry + fragmentation of market
Setting up a small estate agency is relatively accessible compared to other industries, so more small/local agents or hybrid/online agents pop up. The sector is fragmented: there is space for local businesses, boutique agencies, hybrid models.

Competition and diversification
As more agents enter, competition increases, which drives innovation, lower fees, online/hybrid models, more choice for sellers, etc. Some agents also focus more on lettings or property management or partial services to capture niches.

Regional differences
The growth isn't uniform. Regions with less saturated markets or where property is more affordable have seen higher percentage growth. Also, in places where demand or mobility is increasing (for example people moving out of cities, or regional migrations), more agents are setting up to serve those markets.

But there are some complications & counter-factors

While the number is rising, it's not without challenges or qualifications -

Profit margins and competition are under pressure. More agents means more competition for listings, potentially lower commissions or fees. Agents have to differentiate.

Insolvencies have increased for some estate agent businesses, especially smaller ones, due to rising costs (energy, overheads), regulatory burdens, and macroeconomic uncertainty. 
Leading

Branch closures vs business numbers
Some analyses say that while the number of branches or physical offices is declining in some areas, the number of estate agency businesses (which might operate from smaller offices, online, hybrid) is rising. So the structure of the industry is shifting.

Macro risks
High mortgage interest rates, decreasing affordability, economic uncertainty can slow the housing market. If housing transactions decline materially, that could hurt new agency business viability. Some of the recent increases are riding off momentum rather than stable foundations.

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