Top Proptech Startups and Companies in the UK
In the UK, investments in PropTech companies have reached a new high. There was a 360 percent rise in the amount of money raised for these businesses in 2021, compared to the previous year.
Investments in health, smart cities, and smart buildings are on the rise in the wake of this epidemic, but so are investments in logistics and sustainability. Who have earned the most financing in recent years and how?
Crunchbase.com’s most recent fundraising statistics, as well as company press releases and other relevant information, were used to build a list of the UK’s top PropTech companies for 2022.
Table of Contents
What is Proptech?
Let’s take a moment to define what proptech means before moving forward.
When it comes to new disruptive technologies like Proptech, there isn’t one, single definition. In the real estate market, it’s a catch-all term for new technologies that have been adopted and are powering the greater digital transformation.
There may be a wide range of technologies available from different companies. There are four basic types of company profiles:
Aggregators of information
Property data aggregation and access providers.
Drivers of efficiency
Companies that employ technology to increase operational effectiveness while decreasing costs (like renting, selling, etc.).
Smart buildings are also referred to as "smart"
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Shared economy
In the real estate industry, peer-to-peer business models are becoming increasingly popular. Consider the case of Airbnb!
Landbay
According to the amount of money it received in 2022, “Landbay” is the UK’s top PropTech startup. During the past nine years, the company has raised a total of $1.6 billion, which places it at the top of the heap. Gray Stern and John Goodall established their London-based mortgage lending company in 2013.
For the buy-to-let mortgage market, their goal is to make it more accessible by providing a platform that connects buyers and sellers. A 2.65% minimum fixed rate is offered by Landbay for up to an 80% LTV ratio. Products from this company can be used in conventional residences, HMOs and Multi-Unit Freehold Blocks (MUFB). For first-time landlords, they are also available, but only with a maximum of 75% LTV.
You may quickly and simply compare and contrast the various mortgage options available to you in Landbay’s user-friendly marketplace with an integrated calculator.
Over £1 billion was loaned out to more than 4,500 borrowers under this business strategy.
Nested
“Nested,” which has earned a total of $221 million in investment, takes second place in the rankings. James Turford, Matt Robinson, and Phil Cowans launched the company in 2015. Due to the company’s focus on making the home-buying process simpler and less stressful, Nested has seen rapid expansion in the last several years as one of the best proptech startups.
Customers who sell their house through the site might receive an advance payment from the company, which sets them apart from the competition. This enables them to buy a new house without having to wait for the old one to sell. Chain management is continually being monitored by Nested’s in-house staff, according to their claims Furthermore, the company’s buying agents are able to negotiate better bargains, saving the listing price an average of £25,000.
Nested’s service is focusing on “hyper-local” areas in its latest expansion. Customers will benefit from the assistance of real estate agents who have extensive knowledge of a specific neighbourhood. Especially in London, where the service was first launched, this has been a huge hit.
Plentific
UK-based PropTech startup “Plentific” is the third-largest of its kind in terms of finance. More specifically, the marketplace has raised $141 million, of which $71 million was obtained in August 2021’s latest series C funding round. Brookfield Growth, the investment arm of Brookfield Asset Management, and Highland Europe are among the most prominent investors. London is the current headquarters of the company created in 2012 by Cem Savas and Emre Kazan.
Property management companies and landlords can work together through Plentific to provide better maintenance and repair services. Contractor selection, appointment scheduling, and payment processing are all made easier with their platform. As an additional benefit, Plentific’s data analysis dashboard helps to keep an eye on expenditures as well as bookings and performance metrics.
For an undisclosed fee, the company recently bought “TouchRight Software.”. Mobile devices will benefit from increased automation and productivity as a result of this acquisition.
Habito
With a total of $82 million in investment, “Habito” will take the place of four of the UK’s top 5 PropTech startups in 2022. Daniel Hegarty launched the mortgage platform in 2014 and it is based in London.
When Habito began, it was as an online mortgage broker dedicated to streamlining the application and comparison process for prospective home purchasers. Their own buy-to-let mortgages have been added to their product line in 2019. Steps in the financing process have been streamlined and made more efficient as a result of utilising their platform. Credit, identity, and eligibility checks, as well as appraisals of real estate, are all handled quickly and efficiently by Habito. In addition, the platform offers Mortgage-In-Principle or MIP certifications, which can be used to show the integrity of the buyer’s finances to real estate agents or sellers.
Habit intends to serve a wider range of homeowners in the future by broadening its product offering beyond buy-to-let mortgages.
Trussle
In terms of finance, “Trussle” is the fifth-largest PropTech company in the United Kingdom. For an unknown fee, better.com recently purchased the company in July 2021. Founded in 2015 by Ishaan Malhi and Jonathan Galore, Trussle now has over £2.7 billion in mortgage approvals.
Customers do not have to pay a dime to use their mortgage brokerage services. When a loan is accepted, the firm collects a fee from the lender, which it uses to fund itself. A mortgage can be found quickly and easily using Trussle’s technology. They also have a programme that keeps track of the market and alerts customers when a mortgage with a lower interest rate than the one they currently have becomes available. Trussle aspires to be a part of the lifelong process of individuals purchasing and financing new residences with their services. they provide.
An increasing amount of value will be extracted from data analysed in future endeavours, making the process of getting a home loan easier and more transparent.
Conclusion
Proptech is exploding all over the world, and the real estate market is changing at an accelerating rate. There has been a decline in real estate prices due to the ongoing COVID-19 pandemic; yet the UK market is on an upward trend. It was obvious that the British market of Proptech performed better than the global market in 2020.
It is predicted that the third phase of proptech will begin in the near future, according to a paper from Oxford University. Proptech 2.0’s large startups are winding down, but the market’s money is still there, maturing and becoming more stable every day.
In this post, we’ve listed the hottest Proptech startups in the United Kingdom (UK) as well as the new proptech startups.
If you are curious about Proptech, check out our article on how big the proptech is.
