Landlords fear Labour government as demand outstrips supply

Supply and demand are still out of balance as landlords worry about what a Labour government might do.

Propertymark’s Housing Market Insight report reveals demand continues to outstrip supply, with around nine new applicants registered for each available property in June 2024.

The report also reveals rents fluctuate by market and region, but most members reported that rents remained static (52%) or increased (38%) in June 2024.

More landlords selling up

One member of Propertymark in the East Midlands says they are worried the landlord exodus could get worse under a Labour government.

The member said: “Following the election of the Labour government, I am having lots of phone calls from landlords who are worried about the ‘immediate’ withdrawal of Section 21, and I seriously think the flow of landlords selling, which had slowed down, is going to increase again.”

The report also reveals rental arrears decreased slightly in June 2024 with members reporting that just under 2% of their fully managed and rent collect/rent management properties were in arrears.

Base rate cut will stimulate the market

In the residential sector, house prices increased by £3,453 to £285,20. The average number of new prospective buyers registered per branch decreased from 74 in May 2024 to 69 in June 2024.

According to the report, 42% of adults reported finding it ‘very or somewhat difficult’ to afford their rent or mortgage payments.

Nathan Emerson, chief executive officer of Propertymark, says the interest rate cut will help boost the market.

He said: “June marks the beginning of the Great British Summer and a seasonal change in the activity of home buyers.

“Key demand metrics, including the number of prospective buyer registrations and the number of viewings, have reduced slightly as consumer attention turns to the holiday season.

“The general election has also had a moderate effect. Although we expect activity to remain subdued in July, pent-up demand and robust stock levels will see increased activity towards the end of the summer period. The base rate cut to 5% will also help to stimulate the market.”