The UK rental market is experiencing tightening supply, with demand significantly outstripping the number of available properties. Propertymark's Housing Insight report indicates an average of nine applicants are competing for each rental property across its member branches.
Concerns have been raised that the Renters’ Rights Act’s 12-month re-letting ban could exacerbate the squeeze on the rental market. A Propertymark member agent from the South West warned that potential landlords are being deterred by the rule, which prevents them from re-renting a property for 12 months after attempting to sell it.
Affordability pressures are also impacting tenants, with the proportion of member agents reporting rental arrears problems rising to 3.4%. Phil Spencer, founder of MoveiQ, noted that while rents were relatively stable, affordability remains stretched, and the increase in arrears is a warning sign for households.
In the residential sales market, conditions are described as positive but cautious. The average UK house price stands at £272,000, and the balance of power remains with buyers, with stock levels building and most properties achieving below asking price.