The total stock of properties available per member branch climbed slightly month-on-month in July, from 32 to 38, according to Propertymark’s Housing Insight Report.
This was a 37% jump year-on-year, and the highest level across the past 12 months.
However, there was a 98% reduction in the average number of sales viewings per property compared with August 2022, and 81% of member agents reported houses selling for less than asking price during July 2023.
The number of new prospective buyers registered per member branch was down to an average of 64, compared with 86 in June 2023.
Despite this, the average number of sales agreed per member branch saw an uplift to eight in July.
Nathan Emerson, CEO of Propertymark, said: “The sales market remains buoyant despite rising mortgage rates with the number of sales agreed in July at eight per member branch, this is broadly in line with what was reported during the
busy market period in July 2022.
“As the number of viewings and valuations drop, this indicates a shift to only the more serious homebuyers and sellers are remaining proactive in the market.
“Those properties that are currently for sale with motivated vendors in line with the market are selling quickly.”
There was a 38% increase in potential new tenants registering compared with July 2022.
Only a small number (6%) of tenants fell into arrears in July, but this was double the 3% reported in February 2023.
The number of properties available to rent increased slightly, to an average of 14 per member branch, but remained below the levels needed to keep up with demand.
The majority (70%) of agents reported rents increasing at their branch, but this was down from 74% in the same month last year.
Emerson said: “In the lettings market, we continue to see an alarming disparity in the
number of homes available to rent when compared with growing demand
from prospective tenants.
“The number of prospective new tenants is up by 38 per cent in July compared to the same time last year, yet the number of properties available per member branch has risen by only 24 per cent meaning this gap is continuing to widen from already worrying levels.
“This mismatch in supply and demand is putting pressure on rents with six per
cent of tenants per member branch falling into arrears doubling compared
to February 2023.
“Governments across the UK need to urgently address the fundamental problem of undersupply and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”
