The number of new applicants registering per Propertymark member branch and the number of viewings per branch has fallen slightly in October, according to research gleaned from the firms October Housing Insight Report.
In a month that saw average 2-year fixed mortgage rates rise over six per cent as a result of Truss’ economic policies, demand pulled back.
It is unsurprising that the number of people looking to sell their property also fell during this period of uncertainty.
Nathan Emerson, Propertymark chief executive, said: “For the first time, our figures indicate that we are on the cusp of seeing the sales market hand back purchasing power to buyers which is a trend we haven’t seen in months as the market was very much in the seller’s favour.
“Signs of balance within the market is also being seen as competition for homes starts to slow which will allow the number of properties available to buy to fall back in line and a return to a more realistic and sustainable market.”
According to Propertymark’s research, the number of new buyers registering per member branch dipped to 64 in October – down from 83 the month before.
Still, this number is very close to last October’s figure of 67 and represents only a five per cent drop year-on-year.
The average number of viewings per property were also down in October to just over three.
New instructions were down on average to nine per member branch in October, after rising to 12 last month.
Nine is the average for the past 12 months, suggesting no dramatic change but rather a contraction in line with demand.
As supply and demand move together, we are likely to see only small changes in prices.
Additionally, the average number of properties available to buy per member branch held steady at 30.
Furthermore, the average number of new prospective tenants registered per member branch in October also fell, dipping by 42% on the month before.
This drop in demand will reduce pressure on rents, with another fall this month in the number of agents reporting month-on-month rent price rises, as 68% of Propertymark member branches reported month-on-month rent prices increasing in October, down again since a high of 82% in July.
Emerson added: “We are now seeing a slight decrease in the number of prospective tenants registered per branch as due to the ongoing lack of supply, a hike in rent prices was seen across the UK.
“This should start to ease pressures on rents at a crucial time for many as the cost-of-living crisis continues to pinch at people’s finances.”
