Fresh figures quantify excess of demand over supply

The latest market snapshot from Propertymark shows that once again the lettings sector is dominated by demand outstripping supply.

Using data from Propertymark-member letting agents for May (the most recent available) the trade body says the number of new prospective tenants registering per branch showed little movement at 113 - the April figure was 118. 

The number of properties available to rent per branch was just nine in May 2023; this is lower even than in May 2022 when the first signs appeared of the lettings market overheating. 

The current demand-supply imbalance translates into an average of 13 prospective tenants registering per available property - a slightly worse position than a year ago.

Meanwhile on the sales side the average number of new prospective buyers registered at each Propertymark branch lifted moderately to 86 in the past month. Meanwhile demand was only four per cent lower in May 2023 compared to May 2022 - something of a surprise when you consider the raft of negative headlines about the economy and interest rates. 

The average number of viewings per property has remained roughly stable with the spring 2023 figure of three per property, but this is down by about a half on the figure a year ago when the housing market was in a frenzy. 

And the supply of homes for sale on the stocks at each Propertymark member branch is down from 10 this spring to nine now; there’s been a similar small fall in the number of agreed sales, which now runs at seven per branch on average, compared to eight in April.

The number of agents reporting the proportion of sales selling below asking price is rising and now sits at 79 per cent. This compares to 74 per cent in April 2023 and 23 per cent in May 2022.