Demand remains strong as housing market presents a mixed picture

Demand continues to outstrip supply as void periods increase, according to new data.

Propertymark’s latest housing insight report reveals longer void periods, while reports of easing rents point to a more nuanced housing market.

The industry body says the Autumn Budget in October will be crucial in shaping market sentiment.

Notice periods causing issues

According to the data, demand continues to outstrip supply, with an average of nine applicants per property available across member branches, while the average void period reported by member agents was just over three weeks.

A Propertymark member agent in the South West told the report that the Renters’ Rights Act was causing issues for landlords, saying that “the notice periods are causing tenants issues when they want to move within a month”.

Under the new rules, tenants generally have to give two months’ notice to end their tenancy.

Another member agent from Kent said rent prices are “coming down” with “tenants walking away if the landlord will not accept the reduced offer price”.

Lack of supply

Phil Spencer, founder of Move iQ, told the report that the rental market remained under pressure from a lack of supply.

He said: “In lettings, demand continues to significantly outstrip supply, although longer void periods and reports of rents easing in some areas suggest a more nuanced market.

“As we enter the second half of the year, economic conditions and the Autumn Budget will be important factors.

“Realistic expectations will remain key for buyers, sellers, landlords and tenants.”

Autumn Budget fast approaching

In the sales market, the average UK house price stood at £271,000, and the average number of new prospective buyers registered per member branch dipped to an average of 55.

Nathan Emerson, chief executive of Propertymark, pointed out that mortgage figures continue to show a mixed picture.

He said: “A key concern over the last few months has been witnessing both the number of mortgage approvals dip and the overall volume of mortgage lending fall significantly.

“This will very likely shape market sentiment in the coming months, and it remains something to watch closely, especially with the Autumn Budget fast approaching. It will be a case of closely monitoring what the new Chancellor sets out regarding housing in the months ahead.”