Research & Development (R&D) within the property sector in recent years has seen major advancements. PropTech innovation has become integral to investors, buyers, landlords, and tenants alike. 

In fact, new research reveals that out of a survey of over 1,000 respondents, around 75% used a PropTech portal as their primary search channel to buy or rent a home – think Zoopla, RightMove, Purple Bricks, and so on. 

And much like the digitalisation of almost every sector, COVID-19 pushed PropTech products and services to grow exponentially in popularity.  

Trends in PropTech R&D  

Virtual tours for buyers and investors 

For many people, house hunting is now a virtual experience up until the final steps.  

Property investors, for example, who may be considering a range of purchase options across the country (or internationally) are more likely than ever to use virtual tours to widen their pool rather than physically visiting sites. 

What’s more, valuable offerings for property developers are CGIs mock-ups and video imagery, to demonstrate how a property will look in the future, whilst being constructed. 

Capterra’s research demonstrated that almost a fifth (19%) of survey respondents had bought or rented a property based on a solely virtual viewing experience – with no ‘real-life’ confirmation viewing in the later stages. 

This statistic proves just how influential PropTech has become, and how the marketplace is transforming.  

Pandemic influencing choices 

The rise of flexible working was one of the most notable cultural shifts brought about by the pandemic, and the working world shows no signs of going back to the old ways. 

This has had knock-on effects within the property market. Now, people with the option to work remotely have the freedom to relocate – they’re no longer tied to living somewhere that caters to their office commute. 

For this reason, two fifths (42%) of respondents in Capterra’s report said that they were seeking to change locations when they searched for new property. 

Another shift in property purchase behaviour is evident in the fact that 39% of respondents reported that they bought a new house after realising they needed more room because they were spending more time there. 

As PropTech innovation evolves, we can expect it to continue to play an important role in shaping the home buying and renting processes. 

Hot topics in PropTech right now 

A number of fast-growing companies are coming to the forefront of the PropTech industry, offering more than just online methods of buying and selling properties. 

Big names include Emoov, Rentify, Lavanda – all offering property services from valuation, to listings, to virtual viewings and much more. 

Trussle is also turning heads in the market as the first online mortgage broker, setting out to be more efficient and less expensive than the physical alternative. 

Smart home technology is also classified as PropTech, and this has become extremely popular in safeguarding and regulating homes across the world. 

Electronic doorbells (i.e – Ring), heating and lighting systems (i.e – Hive) are now must-have home gadgets. 

Fund PropTech R&D with R&D Tax Credits 

Did you know – the UK government rewards PropTech research and development by allowing innovative companies to reclaim up to 33% of capital spent on their project. 

This initiative is known as R&D Tax Credits. 

Within R&D Tax Credits exists two separate schemes, designed for businesses of different sizes. 

The first (and more conventional) scheme is the SME R&D Tax Credit Scheme.  

Its popularity boils down to the fact that early-stage businesses and SMEs qualify. Applicants for the SME Scheme must have: less than 500 employees; less than €86M in gross assets; and less than €100M in turnover. 

The SME R&D Tax Credit scheme is further determined by the business’ financial position at the time of claiming. 

Loss-making companies are entitled to claim up to 33% of total R&D eligible costs, which is paid directly, in cash, into your bank account. 

On the other hand, profit-making companies can be awarded up to 25% of R&D expenditure, this time in the form of a tax credit. 

The second scheme is the RDEC R&D Tax Credit Scheme. 

Implemented for businesses that exceed the metrics of the SME Scheme, the RDEC scheme works to reclaim 13% of eligible R & D spending. This 13% is fixed (regardless of financial position) and after corporation tax, drops to around 10.5%. 

Claim Capital secure maximised R&D claims for PropTech businesses 

If you’re new to the world of R&D Tax Credits, figuring out your eligibility and which costs can be reclaimed can be a complex task. And whilst running a business, not one that you can find time for.  

But don’t worry! Expert advisors at Claim Capital are on-hand to do the heavy lifting, and deliver successful R&D Tax Credit claims, year after year. 

Claim Capital provides an end-to-end R&D Tax Credit service for innovative companies. Our 20+ years of combined technical experience allows us to analyse PropTech spending under a microscope and maximise the financial benefit of your annual R&D claims.  

At Claim Capital, we believe in joint success, so we set out to break the tradition of percentage-based advisors. Most of our competitors will charge a fee of 10-30% of your claim size!  

We operate an HMRC-recommended fixed fee, that’s only paid when you receive your claim benefit. 

So, when your claim size grows alongside your company, you don’t have to worry about handing more money over to your R&D advisor. You can keep hold of what’s rightly yours, and reinvest more into your PropTech R&D. 

Arrange a free R&D claim consultation today.