After Tract Collapsed, UK Proptech Startup Sector Continues to Complete Major Funding Rounds

In 2024, Tract emerged as a promising proptech startup primed to tackle this problem head-on. In April 2025, the startup that had raised over £700,000 in just its second round of pre-seed funding closed its doors. The AI developed was aimed at getting past planning system barriers, but a sustainable business model didn’t arrive.

When Tract went down, some forecast a slowing or even a collapse of the UK proptech sector. Instead, not only have new avenues for selling property emerged to show a demand for a sleeker, more tech-driven approach, but more proptech startups in the UK have secured significant funding rounds.

Addressing a Pressing Issue in the UK

The UK housing market has been craving new answers and solutions to its traditional process for years. You don’t have to look far to see how many of the individual pieces need to be upgraded to help sellers and buyers. This is despite the process having so many parts that rely on professional outlets along the way.

Of course, it’s this that makes selling or buying a property so expensive and, as a result, very slow. Committing to the market alone is expensive, and then there are the costs and requirements after securing the commitment to buy a property. Proptech startups are hoping to make the process more efficient and cheaper for customers.

Before a truly game-changing startup has emerged, faster and more streamlined alternatives have started to gain traction. Now, if you want to sell your house fast, it’s best to turn to an online cash buyer. They send a free offer within hours of the customer submitting the form.

From there, the service handles the busy work to get a sale done in 7 days. They remove the fees as well, so the offer a customer accepts upfront is the final sum of cash they’ll get. This is more of an alternative to the traditional path to selling, which is where many proptech startups are looking to address key pain points.

Proptech Startups Landing Funding in the UK

Plenty of UK proptech startups have earned a lot of funding over the year despite the headlines formed following the collapse of Tract. One of the most significant of these was Automated Architecture. The raised a hefty £5.1 million to expand its operation of automation and robotic home building, which is said to cut costs by 40 per cent.

In August, news broke of two more major funding rounds going through. First was the £2.85 million reeled in by Jitty. Based in London, they seek to apply AI to facilitate property searches and empower estate agents to make the process more efficient. For online customers, they want Jitty to help visualise a home as if they were there.

Not long after Jitty secured that funding, which brought their total to £4.35 million, Property Sense nailed its own round. The Stockport proptech company got £2 million in its Series A, eyeing up a national rollout for its self-serve leasing platform.

Tract may have gone down, but there are plenty of UK-based startups and companies that are working to streamline the property market through tech solutions.