Mismatch between supply and demand continues to dominate the lettings market

Mismatch between supply and demand continues to dominate the lettings market

0:02 AM, 26th September 2023, About 8 months ago

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Demand continues to outstrip supply as rents continue to rocket, one industry body warns.

Propertymark’s Housing Insight report reveals August 2023 had an average of 197 prospective tenants registering compared to 149 in July 2022.

Figures in August 2023 were up almost 32% year on year and demonstrate a trend that continues to spiral.

Very few properties available to rent

Nathan Emerson, chief executive officer, at Propertymark, said: “There has been little urgency from governments across the UK to address the supply and demand issue by incentivising investment for landlords.

“We continue to see this gap widen as more people come to the market to look for a home, with very few properties available to rent.”

He added: “This continues to put pressure on rents as 68% of our member branches felt rents have risen compared to last month.”

The number of properties available to rent per member branch dipped in August to an average of 11. Propertymark says this number remains drastically below what is needed to keep up with current market demand.

Demand from house hunters remains strong

In the sales market, demand from house hunters remains strong.

The average number of new prospective buyers registered per member branch is up to an average of 81 in August 2023 from 64 in July 2023.

The average number of viewings per property is also starting to show potential early signs of upward momentum once again. In August 2023 the average number of viewings per available property was 2 compared to 1.5 in July 2023.

Mr Emerson says the sales market continues to be in high demand: “The sales market is strong as we see a 29% rise in the number of new properties for sale when compared with last month.

“This shows that many people are continuing to find an affordable middle ground when coming to the market with negotiations well underway.

“We imagine this picture will only get stronger with more sales completing in the coming months given the recent positive news of inflation rates remaining unchanged. This will give much-needed encouragement to those buyers who were hesitant.”

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