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Buyer numbers and homes for sale contract as letting demand grows

  • 18/07/2023
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Buyer numbers and homes for sale contract as letting demand grows
The average number of buyers fell to 69 in June, down from 86 per member branch in May and down five per cent on the same period last year, figures have shown.

According to Propertymark’s Housing Insight Report, the average number of viewings came to 2.6 per property, which is down from a recent peak of 3.3 in April.

The report added that the supply of new homes for sale per member branch continued to fall, standing at eight per cent per member branch. This compares to 10 per cent last year.

This continued a downward trend from March, when new instructions stood at 11 per cent, then fell to 10 per cent in April and then nine per cent in May.

The average number of sales agreed per member branch held at seven in June, which is in line with previous month, and is slightly down from nine last year.

The report said that a “summer lull is generally expected”.

Total stock of properties available per member branch came to 32 on average in June, down from 36 in May. However, this is 23 per cent up on last year.

Average number of appraisals per member branch held steady at 22, which Propertymark said showed that people were “still eager to move home, despite the current economic situation”.


Tenants rising but stock levels ‘remain insufficient’

Propertymark said that the stream of new prospective tenants registered per branch rose to 118 in June, up from 113 in May. This is a 27 per cent rise on the same period last year.

The report said that stock levels “remain insufficient” with the number of properties staying at nine, which is 19 per cent lower than June last year.

The firm said that as demand rose and stock levels remained low then the mismatch would continue to expand, with 13 prospective tenants registering per available property over the month.

This is a 57 per cent increase on the same period last year.

Around 62 per cent of agents surveyed said that rents had increased month-on-month on average in their branch in June.

This is down from 68 per cent in May and a drop from 80 per cent in June.

Nathan Emerson CEO Propertymark, said: “Despite disappointing national economic news reported in June, it is encouraging to see that the number of valuations for sale conducted per branch has remained steady.

“It is clear that a core portion of the country are still looking to get moving and are not put off by current conditions. And, of course, those coming to the market with a home to sell are most often also looking to buy, which keeps the wheels of the market turning for all.”

He added: “In terms of lettings, the number of properties available to rent is 19 per cent lower than last year, while the number of new prospective tenants registering per member branch is up 27 per cent over the same period.

“This worrying mismatch between supply and demand continues to put pressure on rents. UK government’s need to stop tinkering around the edges of the problem and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”

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