Compliance for Estate Agents and PropTech: Getting Your House in Order

If cyber security is something that is confined to the IT team, outsourced to an external provider or keeps slipping to the bottom of the list, you’re not alone, but now is a great time to change.

A recent survey by the National Cyber Security Centre revealed that the real estate sector was among the top industries targeted by ransomware attacks in 2023, with smaller agencies particularly vulnerable due to limited in-house IT resources.

With cybercrime evolving at an alarming rate and the ability to take down your business in one fell swoop, it’s time to give your compliance and cyber security processes the attention they deserve. 

Handling sensitive client data is a cornerstone of the property sector, and as PropTech adoption accelerates, the responsibility to protect that data has never been more critical. For both PropTech providers and estate agents, “getting your house in order” is not just a metaphor; it’s a business imperative.

Why you should turn your attention to compliance?

The property market involves handling vast amounts of client data, from personal identification documents to financial and transaction details – a goldmine as far as cybercriminals are concerned. According to the UK Government Cyber Security Breaches Survey 2024, 32% of small to medium-sized businesses reported experiencing cyber breaches or attacks in the past year, with estate agencies among those frequently targeted.

With regulations such as GDPR (General Data Protection Regulation) and anti-money laundering (AML) requirements firmly in place, failing to safeguard your clients’ data can result in financial penalties, reputational damage, and even the suspension of trading licenses. The stakes are high, and the risks are growing as cybercriminals become more sophisticated.

PropTech: where innovation meets risk

For PropTech providers, compliance is equally crucial. Offering innovative solutions to estate agents and landlords is one thing, but ensuring these solutions meet regulatory requirements such as GDPR, ISO 27001 standards, and anti-money laundering (AML) compliance is vital. Failing to prioritise this not only exposes end users to risks but also jeopardises provider reputations and long-term viability.

While PropTech is revolutionising the industry—from virtual viewings and digital contracts to automated valuation models—it also introduces vulnerabilities. Many PropTech solutions rely on cloud-based systems, integrations with third-party vendors, and real-time data processing, all of which present potential compliance challenges if not managed properly.

For example, ransomware attacks targeting cloud systems in 2023 disrupted property transactions and exposed sensitive client data. Both estate agents and their technology partners must work together to mitigate such risks.

Building a collaborative, compliance-first relationship

How can estate agents embrace the benefits of PropTech without falling foul of compliance or becoming easy prey for cybercriminals? Here are some essential steps:

1. Strengthen vendor-client relationships with trust at the core

PropTech providers should ensure their platforms comply with GDPR, AML regulations, and security standards such as ISO 27001. Estate agents, in turn, should scrutinise the compliance credentials of their technology partners to mitigate shared risks.

2. Develop cyber-resilient ecosystems

Both agents and tech providers must adopt robust cyber security measures, including multi-factor authentication (MFA), encryption, and regular vulnerability assessments. A breach at one end of the chain can have repercussions across the ecosystem.

3. Prioritise training and awareness

Human error remains one of the top causes of data breaches. Training staff across the property sector—from agents to PropTech teams—on phishing scams, secure password practices, and compliance obligations can significantly reduce risks.

5. Prepare for breaches

No system is foolproof, so having a robust incident response plan is essential. Both agents and PropTech companies should develop plans to minimise downtime and reputational damage in the event of an attack.

Compliance is no longer just about risk avoidance—it’s a value proposition.

For estate agents, compliance is about building client trust and avoiding fines, but for PropTech providers, it’s about securing a competitive edge in a crowded marketplace. By prioritising compliance and cyber security, PropTech companies can position themselves as reliable partners for estate agents navigating an increasingly complex digital landscape.

The financial penalties for non-compliance, such as GDPR fines of up to 4% of annual turnover, are significant, but the reputational damage can be even more lasting. As consumers and businesses alike become more conscious of data privacy, compliance is no longer just about risk avoidance—it’s a value proposition

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