Despite some optimism creeping into the economy, market conditions remain challenging within the sector, Propertymark’s latest Housing Insight Report for October has revealed.
According to the research, the number of new prospective buyers per member branch continued to fall in October, falling to 53 from 60 in September and 81 in August.
In addition, the average number of viewings per property remained static across August, September and October 2023.
The number of new prospective tenants registered per member branch decreased month on month since July 2023 when it stood at 124.
In October, the number of registrations stands at 86, a significant drop.
The average number of prospective tenants registered between January and October 2023 was broadly similar to the same period in 2022 (109 and 108 respectively).
Propertymark’s report also found that the average number of properties available to rent per member branch reduced marginally in October over September.
Nathan Emerson, CEO of Propertymark, said: “The Autumn Statement had an upbeat feel and yielded some positive news for the housing industry.
“However, this is no time to celebrate. The cost-of-living crisis continues to limp on, and the International Monetary Fund forecast that the UK’s growth will be the slowest in the G7, whilst its inflation will be the highest.
“The resultant uncertainty continues to impact the housing market. In the residential sales sector, interest rates remain high, causing first-time buyers and movers to think twice.
“This is evidenced by the number of prospective buyers registering at our member branches falling and the number of market appraisals being undertaken trending downwards.”
He added: “In the letting sector, the number of new prospective tenants registered per member branch has decreased month-on-month since July 2023.
“However, demand remains high with around nine prospective tenant registrations per available property. This continues to have an impact on rent levels.
“So too does the continued legislative uncertainty in each of the home nations, which clearly weighs upon landlord investment decision making.
“For example, this month, 72% of the properties that left our agents management were due to the property being sold. It is clearly time for UK legislators to consider more carrot and less stick.”
