There was the usual season dip in the number of residential properties listed for sale in December, the latest from Propertymark shows.

The Propertymark Housing Insight Report for the month revealed that market appraisals fell to the lowest point of the year at 10% per branch, down from 16 in November.

Buyer demand also dropped due to the seasonal period, falling from an average of 49 prospective buyers registering with each estate agency branch in November to 34. While this was put down to the time of year, Propertymark said a general downward trend had also been noted. 

The number of agreed sales per branch declined to an average of four per branch in December, down from six in November, while the property exchange time saw “marginal improvements” last month.

Nathan Emerson, CEO of Propertymark, said: “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.”

Meanwhile, the average number of new prospective tenants registering with each estate agency branch dropped markedly from 86 to 63 month-on-month. 

But while rental stock levels continued to be constrained on a monthly basis, the level of stock available was broadly unchanged year-on-year. 

Tenant demand is still outstripping supply with an average of seven potential tenants for each rental property. 

The average number of newly agreed tenancies dropped marginally in December. 

The number of agents reporting a rise in rental prices rose from 31% in November to 35% in December, while fewer saw a drop in costs at 15% of respondents in December compared to a quarter the month before. 

Rental arrears rose in December and the average void period between tenancies lengthened slightly from 2.2 weeks in November to 2.4 weeks. 

Emerson added: “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 seven new tenant registrations for each available property.  

“While rents continue to ebb and flow with some seeing rises in December, 49 per cent 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.”