Mismatch between supply and demand continues in PRS

Mismatch between supply and demand continues in PRS

0:01 AM, 20th July 2023, About 11 months ago

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Growing demand and low supply leaves renters in limbo, according to new data.

The latest figures from Propertymark’s Housing Insight report reveal in June this year an average of 13 new prospective tenants registered per available property over the month. A 57% increase in the mismatch between supply and demand compared to June 2022.

According to the report, there has been a 19% reduction in properties available to rent.

Mismatch between supply and demand continues to put pressure on rents

Nathan Emerson, the CEO of Propertymark, said: “This worrying mismatch between supply and demand continues to put pressure on rents.

“The government need to stop tinkering around the edges of the problem and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”

According to the figures, 62% of letting agents reported rents increasing month-on-month on average in June this year.

The number of new prospective tenants registered per member branch remained strong in June, compared to May with 118 prospective tenants registering on average compared to 113 in May, which is 27% higher than in June 2022.

A core portion of the country is not put off by current conditions

The average number of new prospective buyers registered per member branch fell slightly to 69 in June, down from 86 in May.

Demand was only 5% lower in June compared to the same month last year.

The average number of viewings per property continued to fall back slightly from its recent peak in April. In June, the average number of viewings per available property was 2.6 compared to 3.3 in April.

Average number of appraisals per member branch held steady at 22, which Propertymark said showed that people were “still eager to move home, despite the current economic situation”.

Mr Emerson added: “Despite disappointing national economic news reported in June, it is encouraging to see that the number of valuations for sale conducted per branch has remained steady.

“It is clear that a core portion of the country is still looking to get moving and are not put off by current conditions. And, of course, those coming to the market with a home to sell are most often also looking to buy, which keeps the wheels of the market turning for all.”


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