Housing crisis continues as demand surges past supply

Demand continues to outpace supply in the lettings market, according to new data.

The latest figures from Propertymark’s Housing Insight report reveal a stark gap between the supply of available rental properties and the surging number of new tenants eagerly signing up for a place to call home.

According to the report, 52% of letting agents felt rents have risen month-on-month.

Disincentivising landlords

The average number of properties available to rent per member branch in September remained broadly the same as in August at 11 properties.

However, whilst there has been a downward trend over the last few months. Propertymark says it is clear that demand continues to outpace supply.

Nathan Emerson, chief executive officer of Propertymark, said: “Governments across the UK continue to tinker with legislation and legislative programs, disincentivising landlords along the way.

“Supply remains tight with far more applicant registrations than properties available. Pressure on rents continues although there are some signs of restraint in this month’s figures compared to last month.”

Ongoing market uncertainty

The level of rental arrears has fluctuated between 2 and 4% over the last 12 months and is currently sitting at 3%.

With inflation and interest rates remaining stubbornly high, market conditions remain challenging within the housing market.

According to the data, 76% of properties are selling under the asking price. The data also reveals a 14% reduction in the number of properties available for sale.

Mr Emerson added ongoing market uncertainty continues to dominate the market.

He said: “Uncertainty continues to pervade the UK economy and the housing market in general.

“Whilst the interest rate hold in September was good news, it offers little respite for those who need to remortgage or those seeking leveraged entry into the housing market.

“In the residential sales sector, there has been a slight reduction in the number of available properties in September 2023. This reflects ongoing market uncertainty, but we expect this trend to level out in the short term.”

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