"We continue to see an alarming disparity in the number of homes available to rent when compared with growing demand from prospective tenants."
Propertymark has seen a "considerable increase" in prospective tenants year-on-year as the mismatch between supply and demand continued to grow.
The number of new prospective tenants registered per member branch showed a sizable jump. July 2023 showed an average of 187 prospective tenants registering on average compared to 127 in July 2022. Figures in July 2023 were up almost 38% year on year, a continued trend that is predicted to show no signs of slowing.
The number of properties available to rent per member branch increased slightly in July to an average of 14, still below what is needed to keep up with current demand.
With demand up and stock levels down, the mismatch between supply and demand continued to grow in July with an average of 13 new prospective tenants registering per available property over the month.
70% of responding agents reported rents increasing month-on-month on average at their branch in July 2023. While this remains high, it is down from 74% in the same month last year.
In the sales market, the average number of new prospective buyers registered per member branch fell to an average of 64 in July, down from 86 in June.
In July, the average number of viewings per available property was 1.5 in July compared to three in June 2023. This indicates that those looking to buy are determined to do so and are acting quickly to secure their property.
The supply of new homes placed for sale per member branch showed a positive lift in July – now at ten per member branch. The average number of sales agreed per member branch also showed an uplift to eight.
The total stock of properties available per member branch climbed slightly to an average of 38 in July compared to 32 in June. Properties available for sale show a 37% jump year-on-year to their highest level across the last twelve months, proving that resilience and determination to move home remains within the market.
Nathan Emerson, CEO of Propertymark, commented: "The sales market is remaining buoyant despite rising mortgage rates with the number of sales agreed in July at eight per member branch which is broadly in line with what was reported during the busy market period in July of 2022. As the number of viewings and valuations drop, this indicates a shift to only the more serious homebuyers and sellers are remaining proactive active in the market. Those properties that are currently for sale with motivated vendors in line with the market are selling quickly.
"In the lettings market, we continue to see an alarming disparity in the number of homes available to rent when compared with growing demand from prospective tenants. The number of prospective new tenants is up by 38% in July compared to the same time last year, yet the number of properties available per member branch has risen by only 24% meaning this gap is continuing to widen from already worrying levels.
"This mismatch in supply and demand is putting pressure on rents with 6% of tenants per member branch falling into arrears doubling compared to February 2023. UK Governments need to urgently address the fundamental problem of undersupply and look to adequately incentivise the provision of desperately needed homes in the private rented sector."
