Massive spike in tenant demand set to make rent levels still higher

Propertymark’s latest rental market snapshot shows that since February, the number of new tenants wanting to register on agents’ books has increased by 88 per cent from 78 then to a new peak in September of 147.

Whilst the number of tenants home hunting keeps climbing, the number of available homes to rent has come to a standstill. 

On average, each member branch has reported having just 11 properties available since June this year.

This figure means an average Propertymark letting agent would have just one property available for 13 new registrants in September - and that is on top of those already registered.

Nathan Emerson, Propertymark chief executive, comments: “The pressure is on for private landlords, and the situation is not improving. Raising interest rates, increasing legislation and tax burdens mean that many landlords are faced with increasing their rent to cover their rising costs or to cut their losses and sell. 

“Landlords are being demonised recently, but in truth they provide homes for those who can’t be served by social housing or afford to buy. A good landlord provides a good home, and more and more people are relying on them.”

Meanwhile on the sales side, Propertymark is report that since April, the number of homes for sale per member branch has risen from 20 to 30 — an increase of 50 per cent.

Despite rising interest rates and cost of living increases it seems people are still keen to get on the move, the trade body says. Its figures show that agents have not had this level of homes for sale since March 2021 when it sat at 31 per member branch. However the number of homes for sale then plummeted reaching record lows to just 19 in January 2022.

Whilst the number of homes for sale nosedived, the number of house hunters increased relentlessly, triggering large house price rises.

The number of house hunters registered on estate agents’ books peaked in January and April this year with a noticeable dip over the summer months. In September this figure picked up, standing at an average of 83 house hunters per branch. Although estate agents' stock is replenishing, figures still stand well below the pre-pandemic average for September of 41 properties available per member branch.

Emerson says: “Over August and September, we have seen an increase in people wanting to get their homes valued and sold. This is great news for buyers who have missed out previously. With the economic climate changing, sellers will need to be realistic about the prices they might achieve, but as most people move every 15 y