Demand from buyers eases while number of prospective tenants grows

The average number of new prospective buyers registered per member branch dropped to 70 in April, down from 93 a month earlier, Propertymark’s latest housing data shows.

The average number of viewings per property remained steady in April. The average last month was 3.3 compared to a December low of 1.8.

As with new buyers registered, viewings were down year-on-year. They were 53 per cent lower in April 2023 than April 2022.

Supply of new homes up for sale per member branch remained stable at 10 per branch in April.

The average number of sales agreed per member branch held at 8, which is the same as last month and the same as the pre-pandemic average (2014–2019).

Total stock of properties available per member branch held at 34 on average in April 2023. Properties available for sale are now 70 per cent higher than in April 2022.

In April, 74% of responding agents reported that most sales were agreed below the asking price.

As far as the rental market is concerned, demand continues to rise.

The number of new prospective tenants registering per member branch rose slightly to 118 in April. This figure is up from the December low of just 64. It is also 24 per cent higher than April 2022.

The number of properties available to rent per member branch remained stubbornly low at nine in April. This is the same level of stock as April 2022.

An average of 16 prospective tenants registered per available property over the same period. Similar to the rise in demand, the mismatch between supply and demand has risen 35% since April 2022.

Some 50% of responding agents reported rents increasing month-on-month on average at their branch in April 2023. This is down from 75% in April last year.

Nathan Emerson, CEO of Propertymark, commented: “What we are seeing here is an interesting change in the property sales market year-on-year. The fall in demand from buyers has allowed the number of homes available for sale to recover some.

“But we are seeing a steady level of transactions happening which is good news for the market and the wider economy. Sellers should be prepared to be patient as it will be taking a little longer to receive an offer, but with the number of sales agreed remaining constant we know we have some solid and motivated buyers out there.

“In the rental market, we are still seeing the demand for property grow but no increase in homes. This means that pressure on rent prices is remaining, whilst new legislation will undoubtedly have a knock on effect, we desperately need more homes for renters.”

See the full Propertymark Housing Market Insight Report for April here.



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