A new Propertymark report once again shows supply of rental properties lagging far behind demand.
The trade body’s lettings summary – which refers to the month before the Renters Rights Act became law – shows an increase in the average number of new tenancies to 9.63 per branch.
However, it says that in April there were around seven would-be tenants chasing every available home to let.
Nathan Emerson, Propertymark chief executive, says that the rental market should be a wake-up call for government.
“Although stock levels improved slightly during April, there are still around seven applicants competing for every available property.
“Policymakers must remain focused on measures that encourage investment and support the supply of homes across all tenures if long-term affordability and accessibility are to improve.”
Meanwhile the same report’s sales market section highlights that almost half of its agents say the time between accepting an offer and actually exchanging contracts is now 17 weeks or even longer.
The trade body has been collecting this data since 2015 and the latest proportion – 43.5% – is the highest in that 11 year period.
This follows on from a recent suggestion by Foxtons that if sellers want to be in their next property by Christmas, they should list shortly.
The Propertymark report, which relates to April, says each branch took on an average of 12.3 homes for sale that month, although typical viewings were down to only 2.4 per property – fewer than in March.
It adds that of all the sales completed in April, only 11% actually achieved the asking price – and a whopping 86% sold below asking price.
This comes on top of this week’s Rightmove data which shows asking prices actually dipped in recent weeks, for the first June in 14 years.
Emerson comments: “Despite wider economic uncertainty and inflation remaining above target, the housing market continues to demonstrate resilience.
“While viewing levels softened during April, buyer registrations and sales agreed remained broadly stable, suggesting that committed purchasers are still actively progressing transactions.
“It’s encouraging to see new sales instructions and overall stock levels increase, providing buyers with greater choice. However, affordability challenges remain key consideration, particularly as higher borrowing costs continue to influence budgets and purchasing decisions.”
