Sales market supply set to rise as more landlords quit - prediction

More property is likely to come onto the sales market in the weeks and months ahead as rising numbers of landlords quit the sector, an expert has predicted. 

Jonathan Rolande, from the National Association of Property Buyers, says: “Right now mortgage rates are stabilising for longer-term borrowing and in conjunction with reduced selling prices, affordability is returning, especially for buyers comparing the alternative cost of renting which is at an all-time high.

“More property is likely to come to market as landlords quit the sector in increasing numbers. This will create more temptation for buyers and will also prompt many would-be tenants to purchase rather than rent. A slowdown in construction is generally bad news but it will result in more sales of second-hand homes which will be welcomed by local estate agents.

“The memory of our sky-high fuel bills will recede over the summer and the higher level of interest rates will be seen as more ‘normal’ which will help but there should be no doubt, the market is in a very precarious position.

Rolande’s comments come days after Propertymark, the agents’ trade body , said that the market was returning to a “new normal”. 

Its report found the average number of homes for sale per estate agency branch last month was 35, this is the highest since January 2021 when the figure sat at 38.

Propertymark believes that as well as motivated sellers, buyer confidence has not swayed, with the number of sales agreed also robust, in line with the average for the pre-pandemic period between 2017 and 2019.

Property viewings rose by 21 per cent in March, which is, traditionally, when more would-be buyers start home hunting.

Rolande adds:  “There are still buyers out there, the recent report by Propertymark found an increase of 21 per cent viewing property although we should remember that this may because buyers are looking at more before deciding. Those buyers can still get mortgages albeit at higher rates than say a year ago, but at least there's still lending, unlike in previous downturns when it all but dried up.”