Housing market
Despite seeing the first indications that high demand is easing in the sales market in June, the average number of properties listed by Propertymark member agents was 22, down from 30 in 2021 and 37 in 2019.
An average of 38 per cent of properties were being sold above the asking price in the first half of 2022, up from 24 per cent in 2021 and 5 per cent in 2019.
With inflation and interest rate rises, the sales market has so far continued to remain buoyant during turbulent times with homes under offer extremely quickly. However, with a continued rise in the number of buyers, stock levels need to increase.
Private rented sector
Our letting agents members confirmed high hikes in rental prices where an average of 76 per cent reported rising rents month-on-month in the first half of 2022 compared to 57 per cent in 2021; 37 per cent in 2019.
The number of new prospective tenants registering per member branch continues to increase significantly from 68 in the first half of 2019, to 85 in 2021, and now sits at 98 in 2022.
On the back of Propertymark’s A Shrinking Private Rented Sector report, 80 per cent of agents said the number of landlords leaving had increased over the past three years.
A shrinking private rented sector
Research reveals the full extent of landlords’ exit from the PRS (private rented sector) indicating the rate at which the sector is shrinking.
Since 2015, Government figures have shown the private rented sector has been slowly shrinking and our latest data suggests this is nothing to do with demand from tenants tailing off, but instead is caused by the lack of incentives keeping landlords in the sector.
Mortgages including buy-to-let, which are on short-term, fixed contracts, have been at historically low-interest rate levels for years but are now rising sharply. Property owners seeing increases in their monthly repayments are having to raise rents. This is leaving many renters in difficulty due to affordability at a time when other costs are also rising.
