The number of potential buyers who registered interest with estate agents in buying a property dropped by 16% in May, the latest data from Propertymark shows.

According to its Housing Insight Report covering May 2024, estate agents recorded a 6% fall in the number of market appraisals undertaken.

The average house price increased by £946 to £281,373 – around eight-times the typical average annual gross earnings.

Meanwhile, the average number of new prospective buyers registered per branch fell from 88 in April to 74 in May.

But in the lettings market there was a 7% increase in applicants registered, along with an average of nine new prospective tenants per member branch.

Overall, rental demand continued to outstrip supply, as total registrations increased from 90 in April 2024 to 97 in May 2024.

Nathan Emerson, CEO of Propertymark, said: “After a flurry of activity last month, there has been a shift in key metrics including a reduction in prospective buyer registrations and viewing numbers. However, this is in line with expectations/established seasonal trends, with consumer attention beginning to shift from housing to holidays.

“On a positive note, the number of sales agreed increased marginally suggesting that the market remains dynamic. The good news for buyers is that the gap between asking prices and market expectations continues to narrow and stock levels continue to increase.

“With pricing and availability improving, now is a great time to enact moving plans. Despite this, some buyers are hedging their bets, awaiting the outcome of the general election and movements in the base rate. However, elongating exchange times suggest that buyers should not delay if they want to move in 2024.

“In the residential lettings sector, tenant demand continues to increase. While stock levels have improved, there were around 9 applicants registered for each available property in May. Although most members report that rents continue to rise or have remained static, there is some good news for prospective tenants with an increase in the number of members reporting rents falling [18% in May 2024 versus 12% in April 2024].

“While both sectors remain resilient, there is much that the next government can do to support buyers, renters such as improving the home buying/renting process and professionalisation of the sector via the regulation of agents. More broadly there is a need for a review of property taxes to make changes which stimulate supply and demand.”