Rising demand causes mismatch with 11 tenants chasing every 10 properties

Rising demand causes mismatch with 11 tenants chasing every 10 properties

10:56 AM, 17th February 2023, About A year ago 1

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The number of people looking to rent rose sharply in January, according to a new report.

Information from the Propertymark association Housing Insight Report covering the period between 31st January -13th February revealed that 108 new applicants registered per member branch on average in January, compared to just 64 in December.

108 is only 9% lower than the figure in January 2022, suggesting demand remains strong in light of recent price increases.

52% of member agents reported rents remaining the same month-on-month

The findings revealed the number of properties available to rent per member branch remained steady at 10 in January. 52%  of member agents reported rents remaining the same month-on-month on average at their branch in January.

However, there is a rising demand with an average of 11 prospective tenants registering for every ten properties available. The mismatch rose from seven in December.

Supply rose by 80% from December to January

The average number of new prospective buyers registered per member branch rose from 39 in December to 70 in January. This increase is normal as many people wait till the New Year to begin house hunting.

The average number of viewings per property also rose in January compared to December. The average last month was 2.9 compared to a
December low of 1.8.

Supply also rose by 80% from December to January. The average number of new instructions per member branch was only five in December but this increased to nine in January.

In January, 73% of responding agents reported that most sales were agreed below the asking price. The last time this figure was as high was January 2020, and also compares to a pre-pandemic average of 78% (2015-2020).

‘Nowhere near enough to keep in line with high demand’

Nathan Emerson, CEO of Propertymark, said: “January’s market has picked up pace with Propertymark estate agents reporting sales agreed up 50% from December.

“Serious buyers are still very much in the market, but more homes are coming up for sale, meaning competition is considerably lower that what we have previously seen.”

He added: “This provides buyers with all important purchasing power, but sellers are still comfortably gaining with prices still higher than pre-pandemic levels.

“The number of applicants looking for to rental property rose sharply in January, and although we have seen a slight increase in the number of properties available per member branch, it is nowhere near enough to keep in line with high demand.”


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Comments

Judith Wordsworth

12:10 PM, 17th February 2023, About A year ago

That doesn't seem much of a mismatch.
I had thought that it was more like 25 renters chasing each property from recent reports.
But them statistics can be easily manipulated to fit whatever argument / discussion you want lol

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