The residential property sales market became more balanced in May as the number of homes for sale increased and buyer demand eased slightly, while the rental sector remained under pressure from a shortage of available properties, according to the latest Propertymark Housing Insight Report.
The average number of new prospective buyers registering with each member branch fell to 64 during the month, while the average number of properties available for sale edged up to 44 per branch, giving buyers greater choice than in recent months.
The figures suggest supply is beginning to catch up with demand, creating a more stable market for estate agents and consumers.
The picture was markedly different in lettings.
Although tenant demand strengthened during May, the average number of rental properties available per branch slipped to 12.09, leaving an average of eight applicants competing for every available home.
Propertymark said the figures highlight the continuing imbalance between supply and demand in the private rented sector, with limited stock continuing to place pressure on tenants and letting agents alike.
There was, however, some improvement in rent arrears, with the proportion of member agents reporting arrears issues easing slightly to 2.1%.
The latest figures reinforce the contrasting fortunes of the two markets, with sales becoming more balanced as stock levels recover, while the supply shortage in lettings continues to drive intense competition for available homes.
Nathan Emerson, CEO of Propertymark, said: “May’s figures demonstrate a housing market that continues to show resilience despite ongoing economic and geopolitical uncertainty. While we have seen a slight dip in prospective buyer registrations, stock levels have edged upwards, giving consumers more choice and helping to create a more balanced sales market.
“The Bank of England maintaining the base rate has provided a degree of stability, but affordability remains a significant challenge for many households, with buyers continuing to take a cautious approach. This is reflected in properties typically achieving below the asking price and transactions continuing to take more than 17 weeks to progress from offer acceptance to exchange.
“In the lettings sector, the long-standing imbalance between supply and demand remains firmly in place. Although tenant demand increased during May, available stock fell slightly, leaving an average of eight applicants competing for every available property. While rental arrears have eased marginally, ongoing legislative change and continued pressure on landlords risk limiting future investment in the private rented sector at a time when more homes are urgently needed.”
Source:- https://propertyindustryeye.com/property-sales-market-steadies-while-rental-pressure-builds/