The UK’s housing market is showing early signs of bouncing back, but rental prices are causing some concern. Let’s take a closer look at the figures and what experts are saying about the state of property in the country.
A Glimmer of Hope for Homebuyers
The latest market insights from Propertymark have painted an encouraging picture for those looking to buy homes. In August 2023, the average number of people looking to purchase properties surged to 81 for every Propertymark member branch. This is up from 64 in July 2023, indicating a significant rise in demand.
Furthermore, each available property is getting more attention, with the average viewings per property rising from 1.5 in July to 2 in August. Plus, the number of properties up for sale is slowly increasing. In August, there were 13 properties on sale for each member branch, a slight rise from previous figures.
These promising numbers don’t stop there. The average number of properties listed by every member branch jumped to 45 in August, up from 38 in July. This is the highest it’s been since the pandemic. Also, property evaluations or market appraisals went up too – from 21 in July to 25 in August.
Nathan Emerson, CEO of Propertymark, shared his thoughts: “There’s been a 29% jump in the number of new properties up for sale from last month. This tells us that many are finding a middle ground when it comes to pricing their homes. We’re expecting to see even more sales in the coming months, especially with inflation rates staying steady. It’s a positive sign for those who were previously unsure about entering the market.”
The Challenge in the Rental Market
While the sales market is blossoming, the rental market paints a different picture. Demand for rental properties is rising, with 197 new prospective tenants registering per member branch in August, up from 149 in July 2022. Yet, the number of available properties for rent dropped, averaging just 11 per branch last month.
This mismatch in supply and demand is pushing up rental prices. Emerson highlighted, “The rental market hasn’t changed much. There hasn’t been a push from the UK governments to tackle the supply-demand problem or to motivate landlords to invest more. We’re seeing more people looking to rent, but there’s hardly any properties available. Consequently, 68% of our branches feel rents have increased from the previous month.”
What’s Next for the UK Property Market?
The housing market’s recovery is excellent news for buyers, but the rental market remains a point of concern. With fewer rental properties available and increasing demand, rent prices will likely continue their upward trend unless measures are taken to incentivise landlords and boost supply.
For now, potential renters might face steeper prices, while homebuyers could benefit from a market that’s steadily finding its footing post-Covid.