10:35 AM, 19th January 2023, About 2 years ago
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Propertymark has revealed its concerns and opportunities for landlords, buyers, tenants, sellers and investors in 2023.
And its annual report highlights that more people than ever before are looking for a home in the private rented sector.
There’s also a prediction of a return to a buyer’s market by the end of the year.
Propertymark says a rising population and a lack of adequate housing construction have led to strong demand from tenants looking to rent in 2022.
The report highlights that the number of prospective tenants registering with member branches set a new monthly record in September at 147 new prospective tenants per branch.
Demand for rental property has grown by 57% since 2018, when Propertymark records began.
At the same time, there was no growth in the size of the PRS to house these tenants.
Propertymark says that with such a mismatch in demand and supply, it is no surprise that rents have risen in 2022.
And this mismatch led to rent increases becoming the norm in many areas of the UK with most agents seeing rent rises in their areas.
However, one big concern is the impact of upcoming legislation on landlords for 80% of agents.
Agents also worry about diminishing yields (44%), and issues with damp, condensation and mould (35%).
In the sales market, the average number of viewings per property fell across the year from April to December by 71%.
As one estate agent put it, ‘The cappuccino market days are over. We’re now in espresso times where only serious buyers are out looking for property’.
This is because many buyers have decided upon a ‘wait and see’ approach to the current economic turmoil.
Member branches have seen a steady stream of new instructions on average over the year, with traditional dips in December (0% change year on year from 2021 to 2022).
At the same time, the total number of properties for sale has steadily risen over the year.
Nathan Emerson, the CEO of Propertymark, said: “A rising population and a lack of adequate housing construction has led us to a peak of demand from home hunters looking to rent in 2022.
“With such a mismatch in demand and supply, it is no surprise that rents have risen most keenly in 2022.”
He added: “The largest shift over 2022 for the sales market is in prices agreed compared to initial asking prices.
“Starting 2022 in a sellers’ market and ending the year back in the longer term normal of a buyers’ market.
“The seller’s market seen is unprecedented in our data which stretches back to 2013.”
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