A new survey throws light on the scale of the supply shortage hurting the rental market - and in addition shows the fall and fall of market share for online estate agencies.
Property industry consultancy TwentyCi - in its latest market snapshot - says that in the first quarter of 2023 new instructions were down by 24 per cent and Lets Agreed down by 11.5 per cent compared to Q1 2019.
The report is clear as to why, saying: “Landlords are withdrawing from the market as the tax and regulatory environment has become less favourable.”
TwentyCi notes that the lack of supply is compounded on the demand side as tenants are deferring decisions to buy as a result of higher house prices, inflation and interest rates.
The lack of supply has inevitably translated into higher asking prices, which on average are now at £1,651 per month, an increase of almost £300 since 2019.
The same report reveals the continuing fall in the market share of online agencies in the sales sector.
TwentyCi says: “Cost-of-living challenges would presumably have encouraged sellers to seek lower-cost options, however our analysis shows the opposite. The market share of Hybrid / Online agents overall was 6.5 per cent declining from 7.3 per cent in 2022 and down from the peak of 8.2 per cent in 2019.”
Purplebricks, Yopa and Strike remain the dominant brands, together representing over 70 per cent of the online niche.
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