In the lead-up to Christmas, the property rental market maintained its intensity, with figures released this week by Propertymark indicating a sustained level of activity. Despite the festive season, there was no notable shift in the bustling lettings landscape, according to the latest findings.
Propertymark’s data unveiled that the influx of new potential tenants registering per agency branch remained constant, paralleled by a supply that mirrored previous levels. This equilibrium resulted in a scenario where an average of nine prospective tenants vied for each available rental property.
Nevertheless, the organization’s most recent market overview highlighted a moderation in reports of rent hikes compared to earlier months. However, late in 2023, rental arrears exhibited an increase. Though still relatively low – affecting less than 3.5 percent of all tenancies – this uptick represents a higher proportion compared to previous periods.
Nathan Emerson, Chief Executive of Propertymark, emphasized, “Economic uncertainties persist within the UK economy and housing markets. In the lettings sector, the balance between supply and demand remains somewhat static but skewed, with approximately nine fresh applicants for every property available.” Emerson continued, “Despite a continuing upward trend in rents in key segments, approximately a quarter of our members observed declines in rental rates.”
Shifting focus to the sales sector, Emerson highlighted indicators signalling a general cooling of the market. He remarked, “There are strong indications that the market is experiencing a gradual slowdown overall.”
The report underscores the persistent stability in the lettings market amid ongoing economic uncertainties, accompanied by nuanced fluctuations in rent trends and a notable increase in rental arrears as 2023 drew to a close.