Rental demand continues to outstrip supply: Propertymark

Demand is continuing to out-strip supply in the rental market, according to the latest data from Propertymark.

Related topics:  Property
Rozi Jones | Editor, Barcadia Media
26th September 2023
for rent
"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."

August saw an average of 197 prospective tenants registering compared to 149 in July, while the number of properties available to rent per member branch dipped to an average of 11.

In addition, 69% of responding agents reported rents increasing month-on-month on average at their branch in August.

The sales market is seeing "early signs of forward momentum", according to Propertymark, with the average number of new prospective buyers registered per member branch up to an average of 81 in August from 64 in July.

The number of viewings per property is also starting to show potential early signs of forward momentum once again. Properties available per member branch showed a positive climb to an average of 45 in August compared to 38 in July, while the number of agreed sales increased by 9%.

Nathan Emerson, CEO of 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 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."

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