Propertymark has revealed early signs of a recovery in homebuyer demand as mortgage rates start to ease back, but said rents continue to spiral out of control as the widening supply-demand imbalance leaves prospective tenants with little alternative but to bid against each other, pushing rents up in the process, as landlords continue to flee the PRS.

In its latest market snapshot, focussing primarily on the housing market in August, it says that the average number of new prospective purchasers registered per member branch is up to an average of 81 in August 2023 from 64 in July 2023, while average number of viewings per property is also starting to show potential early signs of growth.

In August 2023, the average number of viewings per available property was 2 compared to 1.5 in July 2023, while the supply of the supply of properties for sale edged up to an average of 13 per member branch.

The data also revealed that the average number of properties available per member branch rose to 45 last month, up from 38 in July; the highest post-Covid figure.

The average number of market appraisals conducted per member branch also improved, increasing from an average of 21 in July to 25 in August.

Nathan Emerson, CEO Propertymark, commented: “The sales market is strong as we see a 29% rise in the number of new properties for sale when compared with last month. This shows that many people are continuing to find an affordable middle ground when coming to the market with negotiations well underway.

“We imagine this picture will only get stronger with more sales completing in the coming months given the recent positive news of inflation rates remaining unchanged. This will give much needed encouragement to those buyers who were hesitant.”

As far as the letting market is concerned, the number of new prospective tenants registered per member branch continued to grow. August saw an average of 197 prospective tenants registering compared to 149 in July 2022.

But while demand rises, the number of properties available to rent per member branch dipped last month to an average of 11; the supply-demand imbalance continues to place upward pressure on rents.

Emerson commented: “As for the lettings market, the picture remains the same. There has been little urgency from governments across the UK to address the supply and demand issue by incentivising investment for landlords. We continue to see this gap widen as more people come to the market to look for a home, with very few properties available to rent.

“This continues to put pressure on rents as 68% of our member branches felt rents have risen compared to last month.”