Propertymark: Persistent Rental Demand Outpaces Supply
Posted on Tuesday, 26 September, 2023
August witnessed a rise in the average number of potential tenants registering for rental properties, with 197 registrations compared to the 149 recorded in July. Simultaneously, the supply of available rental properties per member branch dwindled, averaging just 11.
Furthermore, 69% of agents participating in the survey reported an increase in rents at their branches during August.
The sales market is displaying “early signs of forward momentum,” according to Propertymark. The average number of new prospective buyers registering per member branch increased to an average of 81 in August, up from 64 in July. Additionally, there are hints of potential progress in the number of property viewings per property. The availability of properties per member branch exhibited a positive increase, reaching an average of 45 in August compared to 38 in July. Moreover, the number of agreed property sales rose by 9%.
Nathan Emerson, CEO of Propertymark, offered insights into the current market dynamics. He noted the robustness of the sales market, marked by a 29% rise in the number of new properties for sale compared to the previous month. This suggests that many individuals are finding affordable options in the market, with negotiations actively taking place. Emerson anticipates that this trend will strengthen further in the coming months, particularly given the recent positive news regarding unchanged inflation rates. He believes this will encourage hesitant buyers to take action.
However, in the lettings market, the situation remains largely unchanged. There has been a lack of urgency from governments across the UK to address the supply and demand imbalances by incentivizing investment for landlords. Consequently, the gap between those seeking rental properties and the limited availability of such properties continues to widen. This ongoing challenge exerts upward pressure on rents, as indicated by 68% of member branches reporting rent increases compared to the previous month.