UK property businesses could be leaving themselves financially exposed to cybercrime, with new research showing that cyber insurance uptake remains relatively low even as reported attacks on the sector increase.
Analysis from GlobalData found that cyber insurance penetration among real estate and renting businesses is below the wider UK SME market across every company size.
The findings come as property companies increasingly rely on digital platforms while holding substantial quantities of sensitive personal and financial information.
Figures sourced by GlobalData from the Information Commissioner’s Office show that reported cyber incidents affecting UK property services businesses increased from 178 in 2024 to 208 in 2025 – a rise of around 17%.
Smaller Property Businesses Have Lowest Cyber Cover
GlobalData’s Q1 2025 UK SME Insurance Survey found a particularly pronounced protection gap among smaller firms.
Just 7.7% of sole traders in real estate and renting reported having cyber insurance, compared with 13.1% across the wider SME market.
Among micro businesses, penetration was 15.8%, against 26.4% for SMEs generally. The figure increased to 20.5% among small property businesses, but this remained substantially below the 40.1% recorded across the wider SME sector.
Even among medium-sized property businesses, where 55% reported having cyber insurance, penetration remained below the wider SME figure of 63%.
The survey covered 1,508 businesses employing fewer than 250 people.
Property Data Presents Attractive Target
The property industry potentially presents cybercriminals with particularly valuable information.
Estate agents, letting businesses and other companies involved in property transactions can hold customer bank details, mortgage information, tenancy records and identity documents including passports, driving licences and proof of address.
A successful attack can consequently create risks extending well beyond the theft of personal data.
Charlie Hutcherson, Senior Insurance Analyst at GlobalData, said:
“Property businesses are becoming increasingly reliant on digital systems while continuing to hold large amounts of sensitive personal and financial information.”
Compromised information can also be exploited to commit fraud during property transactions.
According to figures cited by GlobalData from City of London Police and Action Fraud, 143 cases of conveyancing fraud were recorded between April 2024 and March 2025, producing combined losses of £11.7 million.
Most involved residential property transactions, with an average reported loss of £78,393.
One technique involves criminals obtaining information relating to a legitimate transaction and attempting to substitute genuine bank details with accounts under their control.
Cyber Risk Extends Beyond Data Breaches
For property businesses, the consequences of an attack can include fraud, disruption to operations and potentially significant recovery costs alongside the regulatory and reputational implications of losing customer data.
However, GlobalData’s findings suggest insurance adoption has not increased sufficiently to match that exposure, particularly among smaller organisations.
Hutcherson said:
“For insurers, this represents an opportunity to address an increasingly visible protection gap. Improving understanding of cyber risks among property businesses will be important, but insurers will also need to make cover easier to understand and access.”
Cyber insurance does not replace measures such as secure authentication, staff training, backups and robust IT security. Instead, it can form another part of a company’s wider approach to managing the financial consequences of an incident.
For smaller property businesses in particular, GlobalData argues that brokers and insurers may need to do more to explain the potential costs associated with a successful cyberattack.
Digital Property Market Could Increase Exposure
The issue is unlikely to disappear as more elements of buying, selling, letting and managing property move online.
Electronic documents, customer portals, online identity checks, digital payments and cloud-based property management systems can make transactions more convenient, but they can also increase the number of digital systems and accounts businesses need to protect.
Hutcherson concluded:
“As property transactions and customer interactions become increasingly digital, cyber exposure within the sector is unlikely to diminish. Rising attack volumes combined with comparatively low insurance penetration could increase the number of businesses absorbing cyber losses themselves. Insurers that can improve awareness, simplify distribution, and demonstrate the practical value of cyber cover therefore have an opportunity to increase penetration within an underserved part of the SME market.”
With cyberattacks against UK property services businesses already rising, the figures highlight a widening divide between the industry’s growing dependence on digital technology and the proportion of firms with financial protection against a serious cyber incident.