Propertymark chief executive Nathan Emerson says the lettings market is defined now by the “alarming disparity” between demand and supply.
In the trade body’s latest market snapshot, based on responses from 99 lettings agencies, Emerson says: “We continue to see an alarming disparity in the number of homes available to rent when compared with growing demand from prospective tenants.
“The number of prospective new tenants is up by 38 per cent in July compared to the same time last year, yet the number of properties available per member branch has risen by only 24 per cent meaning this gap is continuing to widen from already worrying levels.
“This mismatch in supply and demand is putting pressure on rents with six per cent of tenants per member branch falling into arrears - doubling compared to February 2023. Governments across the UK need to urgently address the fundamental problem of undersupply and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”
The Propertymark snapshot shows that the number of new prospective tenants registered per member branch took a sizeable jump in July; this showed an average of 187 prospective tenants registering on average compared to 127 in July 2022.
Figures in July 2023 were up almost 38 per cent year on year, a continued trend that is predicted to show no signs of slowing.
Meanwhile the number of properties available to rent per member branch increased slightly in July to an average of 14. This is still below what is needed to keep up with current demand, the trade body insists.
With demand up and stock levels down, Propertymark says it is no surprise that the mismatch between supply and demand continued in July with an average of 13 new prospective tenants registering per available property over the month.
On the sales side - and after 14 successive base rate rises from he Bank of England - the average number of new prospective buyers registered per Propertymark member branch is down to an average of 64 in July 2023, down from 86 in June 2023.
In July, the average number of viewings per available property was 1.5 in July compared to 3.0 in June 2023.
The supply of new homes placed for sale per member branch showed a positive lift in July – now at 10 per member branch. The average number of sales agreed per member branch also showed an uplift to eight in July.
Emerson concludes: “As the number of viewings and valuations drop, this indicates a shift to only the more serious homebuyers and sellers are remaining proactive in the market. Those properties that are currently for sale with motivated vendors in line with the market are selling quickly.”
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Easy solution treat landlords like any other business and reverse section 24.
In terms of the tax raised versus the cost of emergency housing and other support, I wonder how that's working out??
This incompetent government are not listening 🙉, and I suspect even if they were , they would ignore the results 🆘. The soon to be Labour Party will be no better…. And I think could be worse as I distrust their promises of no rent controls 🤷♂️
We are seeing exactly what you’re describing in Scotland. The SNP /Greens are absolutely wrecking the PRS with their petty tenant vote winning ideas but won’t acknowledge the damage they are doing. Rents are soaring when properties are up for relet, landlords are selling up (including myself) one of 9 gone last week.
I’ve been an exceptional landlord for over 25 years offering immaculately presented properties, but I’ve had enough.
I’ll leave the housing mess with you Patrick Harvie. How on earth did a party who’s 3 MSP’s only managed to get a combined total of c.8000 votes get into a position of such power. Scotland’s shame. You and the SNP have done more damage to Scotland than a demolition contractor could have caused!
The Scottish Greens aren't even green, opposing more fuel efficient motorways and dual carriageways, demonising diesels and banning new nuclear power stations in Scotland.
Their founder and first MSP, Robin Harper has resigned in despair and disgust
This is what happens when the Gov wage war on Landlords. We all recognise both errant Landlords and Tenants should be dealt with but this Renters Reform Bill is NOT the answer. I will be interested to see what REFORM PARTY UK 🇬🇧 has to say about Landlords.
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