House hunting tenant numbers at two-year low say agents

Letting agents are suffering the consequences of a supply and demand imbalance with just seven new tenants for each property and with half (49%) reporting rents staying the same, Propertymark’s Housing Insight Report reveals.

The trade body’s December report shows the established downward seasonal trend continued towards 2024 with the number of new prospective tenants registered per member branch reduced to 63 from 86 in the previous month.

As with demand, stock levels followed downward seasonal trends with a marginal reduction in the number of properties available in December when compared to the previous month but also in line with the same time last year.

SUPPLY AND DEMAND

Nathan Emerson (main picture), Chief Executive of Propertymark, says: “Regardless there remains a supply and demand imbalance with around seven new tenant registrations for each available property.

“While rents continue to ebb and flow with some seeing rises in December, 49% of agents reported rents staying the same suggesting some restraint.”

Looking back on the last 12 months, Emerson goes on to say: “In the wider economy interest rates stabilised, however, inflationary concerns remain, and GDP growth has been anaemic.

“In response to these and other factors, house prices have fallen in some areas. In the Private Rented Sector (PRS), tinkering by the UK and devolved governments and continued strong demand has caused rents to rise.”

RESIDENTIAL SALES

And he adds: “In the residential sales sector, key supply and demand indicators, such as the number of buyers registered and number of new sales instructions, are at their lowest points in the year.

“As we head into 2024, pressures remain on house prices, with further adjustments required to match valuations to market expectations.

“The lettings sector is subject to the same seasonal trends resulting in tenant demand and new tenancy completions being lower than the previous month.

“Looking forward to January, we can expect a lively start to the year, whether or not this sets the pace for the year as whole will depend on the stability of the wider economy and the actions of policymakers.”