Despite the current economic climate, market conditions in the UK property sector exhibit no significant shift, as indicated in Propertymark’s Housing Insight Report for June 2023.
On the sales front, the report shows that the average number of market appraisals conducted per member branch has held steady at 22, signifying a continuous interest in home relocation. However, the average number of new prospective buyers registered per member branch dropped slightly to 69 in June, a decrease from 86 in May, reflecting a mere five per cent reduction compared to the same month last year.
Additionally, the report suggests that the average number of viewings per available property has receded slightly from its recent peak in April, standing at 2.6 in June compared to 3.3 two months prior. Despite an anticipated summer lull, the stock of new homes available for sale per member branch continued its downward trend in June, reducing to eight properties per branch. However, the average number of sales agreed upon per member branch remained steady at seven, mirroring the previous month’s figure.
Meanwhile, the total inventory of properties available per member branch declined slightly to an average of 32 in June from 36 in May, a notable 23 per cent increase compared to June 2022.
In the lettings market, the report notes that rental property stock levels continue to be insufficient. The number of new prospective tenants registering per member branch remained robust in June, with an average of 118 prospective tenants registering compared to 113 in May. This represents a significant 27 per cent increase compared to June 2022.
Conversely, the number of properties available to rent per member branch remained stagnant at nine in June, a stark 19 per cent decrease from the same period last year. Consequently, the average number of new prospective tenants registering per available property over the month was 13, resulting in a 57 per cent escalation in the disparity between supply and demand compared to June 2022. Moreover, 62 per cent of responding agents reported an average month-on-month rent increase at their branches in June.
Commenting on the data, Propertymark CEO Nathan Emerson said, “Despite disappointing national economic news reported in June, it is heartening to see that the number of valuations for sale conducted per branch has remained stable. It is evident that a significant portion of the population is still eager to relocate, undeterred by current conditions.”
Emerson further noted the critical issue in the lettings market. He stated, “The number of properties available to rent is 19 per cent lower than last year, while the number of new prospective tenants registering per member branch is up by 27 per cent over the same period. This alarming mismatch between supply and demand continues to exert pressure on rents. UK Governments must stop merely skirting the problem and take appropriate measures to incentivise the provision of urgently needed homes in the private rented sector.”