Eight renters are chasing every available property

The latest data from letting agents’ trade body Propertymark continues to paint a bleak picture about the housing shortage in the rental market.

The body’s latest market snapshot – released this week but using data from May – shows the average number of new tenancies agreed per member branch sitting at 8.36.

Meanwhile the average number of properties available for rent at member branches decreased slightly to 12.09.

However, the average number of tenant registrations per member branch jumped to 98, while the average number of new property instructions (fully managed) decreased in May to 2.39 per member branch.

Chief executive Nathan Emerson said: “The long-standing imbalance between supply and demand remains firmly in place.

“Although tenant demand increased during May, available stock fell slightly, leaving an average of eight applicants competing for every available property.

“While rental arrears have eased marginally, ongoing legislative change and continued pressure on landlords risk limiting future investment in the private rented sector at a time when more homes are urgently needed.”

Move iQ founder, Phil Spencer, who works closely with Propertymark, stated:  “With only around 12 properties available per letting branch and demand continuing to outstrip supply, securing a suitable home remains challenging.

“While rent increases appear to be stabilising in many areas, the underlying shortage of rental homes means many tenants are still facing limited choice and strong competition whenever a property becomes available.”

Propertymark’s latest Housing Insight also revealed that the average member branch agreed eight sales during the month, unchanged from April, while the number of available properties increased marginally to 44.

However, new prospective buyer registrations dropped to 64 per branch. Some 84% of responding agents reported properties selling below their asking price, while only 11% said homes achieved the asking price.

Branches received an average of 10.1 new sales instructions and conducted 20 market appraisals during May, with properties attracted an average of 2.2 viewings, unchanged from April.