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Property Sales Market Stabilises as Rental Pressure Persists in May

The residential property sales market showed signs of balancing in May with increased homes for sale and easing buyer demand, while the rental sector continued to face pressure from limited availability.

  • The average number of properties for sale per branch rose to 44 in May.
  • Eight applicants competed for every available rental home on average in May.
  • The proportion of agents reporting rent arrears eased slightly to 2.1%.

The UK residential property sales market became more balanced in May, according to the latest Propertymark Housing Insight Report. The number of homes available for sale increased, while buyer demand eased slightly.

During May, the average number of new prospective buyers registering with each member branch fell to 64. Concurrently, the average number of properties available for sale edged up to 44 per branch, offering buyers more choice than in previous months.

In contrast, the lettings sector remained under pressure. Although tenant demand strengthened in May, the average number of rental properties available per branch slipped to 12.09, resulting in an average of eight applicants competing for every available home.

Propertymark noted that these figures highlight a continuing imbalance between supply and demand in the private rented sector. However, there was a slight improvement in rent arrears, with the proportion of member agents reporting issues easing to 2.1%.

Nathan Emerson, CEO of Propertymark, stated that May's figures demonstrate a resilient housing market despite economic and geopolitical uncertainty. He added that the Bank of England maintaining the base rate provided some stability, but affordability remains a challenge for many households.

Why this matters: The contrasting trends in sales and lettings highlight different challenges for those looking to buy or rent property.

What this means for you: If you are looking to buy, there may be more choice available. If you are looking to rent, competition for properties remains high.

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