0:01 AM, 5th September 2024, About 8 hours ago
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A new Labour government has made landlords nervous about what lies ahead as demand continues to outpace supply.
The latest figures from Propertymark’s Housing Report for July reveal that, despite a drop in the number of prospective tenants registering for a property, demand still outstrips supply, with about eight new applicants for every available property in July.
According to the report, 40% of agents are seeing rents rise.
In July 2024, the average rent was £1,319 in England, £965 in Scotland and £748 in Wales.
After a Labour victory in the general election, a Propertymark agent notes that many landlords fear what lies ahead.
The agent said: “There does appear to be ‘movement’ in the market and as tenants leave, properties are being re-marketed at a rent commensurate with current market trends. Applicants still far outnumber the properties available and available properties are achieving the new rents. It is very slow and although new properties are coming onto the market.
“Landlords are still very nervous about what lies ahead with the Labour government and the new legislative changes which may be imposed.”
Nathan Emerson, Propertymark chief executive, says despite a summer slowdown in the lettings market demand still continues to outpace supply.
He said: “Also impacted by the holiday season, the residential letting sector witnessed a 10% reduction in the number of prospective tenants registered.
“Regardless, there were still 8 registrations for each available property. New instructions trended downward pointing to the potential for further supply constraints and the need for policies, which support and encourage private landlords”
“The new government has inherited a very large ‘to-do’ list with urgent interventions required in several policy areas. Priorities include improving the home buying and selling process, the regulation of property agents, clarification around net zero funding, and stabilising investment patterns within the private rented sector. We look forward to working with the new government to tackle these and other issues.”
In the residential sales sector, UK house prices continue to rise. According to the report, the average UK house price increased by £1,497 to £287,924 in June 2024, this remains at around eight times the average annual gross earnings.
The average number of new prospective buyers registered per branch increased from 69 in June to 71 in July.
Mr Emerson says the residential market remained static during the summer.
He said: “We entered July with a new government and the prospect of a reset in major housing policy areas.
“Despite this, and a wetter than normal July, prospective buyer registrations in the residential sales sector were up, and so too were the number of sales agreed. Reflecting seasonal trends alongside the anticipation of an August rate cut, most other sales metrics remained static.
“Although underlying demand remains strong, the gap between buyer and seller expectations continues.”
