35% of agents saw rents rise in December 2023, Propertymark’s Housing Insight Report has revealed.
The report also revealed that the average number of new prospective buyers registered per Propertymark member branch reduced from 49 in November to 34 in December.
In addition, new supply fell in the run up to Christmas, with an average just five homes placed for sale per member branch throughout the month.
The report found a 35% decrease in the number of market appraisals undertaken, along with a 31% decrease in the number of buyers registered.
Rental arrears continued to increase throughout December, as rents continued to rise.
Rental stock levels followed downward seasonal trends, with a marginal reduction in the number of properties available in December when compared to the previous month.
This falling demand was evidenced by a 16% fall in the number of new tenancies signed during the period.
Nathan Emerson, CEO of Propertymark, said: “December marks the end of an interesting and challenging year within the property market.
“In the wider economy interest rates have stabilised, however, inflationary concerns remain, and GDP growth has been anaemic.
“In response to these and other factors, house prices have fallen in some areas.
“In the Private rented sector (PRS), tinkering by the UK and devolved governments and continued strong demand has caused rents to rise.
“In the residential sales sector, we have reached the trough of the seasonal trend that begins in Autumn and runs to Christmas.
“Key supply and demand indicators, such as the number of buyers registered and number of new sales instructions, are at their lowest points in the year.
“As we head into 2024, pressures remain on house prices, with further adjustments required to match valuations to market expectations.”
He continued: “The lettings sector is subject to the same seasonal trends resulting in tenant demand and new tenancy completions being lower than the previous month.
“Regardless there remains a supply and demand imbalance with around 7 new tenant registrations for each available property.
“While rents continue to ebb and flow with some seeing rises in December, 49% of agents reported rents staying the same suggesting some restraint.
“Looking forward to January, we can expect a lively start to the year, whether or not this sets the pace for the year as whole will depend on the stability of the wider economy and the actions of policymakers.”
