Rental market cooling according to new Propertymark figures

An average of 85 new applicants were registered per Propertymark member branch in October according to the trade body’s latest lettings market snapshot. 

This number is down significantly since last month’s high of 147; however, it is still above the pre-pandemic average for October of 72, reached in 2018 and 2019 before Coronavirus hit. 

Based on responses from 186 lettings branches, Propertymark says its members reported having nine properties on average per branch that were available to rent in October — down slightly from the previous month’s figure of 11. 

Some 68 per cent of member branches reported month-on-month rent prices increasing in October. This is down again since a high of 82 per cent in July. 

There has also been a slowing of the market on the sales side - even before the most recent interest rate rise - and Propertymark chief executive Nathan Emerson says: “We are now seeing a slight decrease in the number of prospective tenants registered per branch as due to the ongoing lack of supply, a hike in rent prices was seen across the UK. This should start to ease pressures on rents at a crucial time for many as the cost of living crisis continues to pinch at people’s finances.” 

He continues: “The number of new applicants registering per member branch and the number of viewings per branch has fallen slightly in October when compared with September, while the number of new properties put up for sale also dipped. In a month that saw average two-year fixed mortgage rates rise over six per cent as a result of Truss’ economic policies, demand pulled back. 

“It is unsurprising that the number of people looking to sell their property also fell during this period of uncertainty. With a new Prime Minister and Chancellor at the helm, along with statements form the Bank of England that base rates will not rise as high as expected during October, industry professionals are hopeful to see increased activity into November. 

“For the first time, our figures indicate that we are on the cusp of seeing the sales market hand back purchasing power to buyers which is a trend we haven’t seen in months as the market was very much in the seller’s favour. Signs of balance within the market is also being seen as competition for homes starts to slow which will allow the number of properties available to buy to fall back in line and a return to a more realistic and sustainable market.”