There was a rise in the number of prospective homebuyers registering with estate agents in July, while the volume of agreed property sales was also up, Propertymark’s Housing Insight report for the month has revealed.
The data showed that the average number of new prospective buyers registering to each estate agency member branch increased from 69 in June to 71 in July.
But viewing numbers remained broadly unchanged at 93 per branch, while the average number of viewings per property was also similar month-on-month.
Around 10 properties were listed for sale at each estate agency branch in July – unchanged from a month earlier.
Similarly, the average number of housing stock available for sale per branch stayed the same at 41.
Looking at future housing stock, the data shows that there were an average of 22 market appraisals conducted per branch in July.
Propertymark’s report also revealed that the number of agreed sales rose by 5% in July to an average of four per branch, while the gap between asking prices and sales prices widened.
It was also revealed that there was a marginal fall in tenant demand for rental properties in July, dropping from 99 registrations per branch in June to 88 in July.
Meanwhile, the supply-demand imbalance improved slightly thanks in part to an increase in stock levels. But the average number of new rental property instructions continued to drop.
There were around eight potential tenants for each available rental property, down marginally from nine a month earlier.
There was a small reduction in the volume of tenancies agreed, but this had a limited impact on the overall increase in rental prices, with regional differences recorded. In July, 44% of its members reported that rents had stayed flat, while 15% reported decreases.
There was a marginal increase in rental arrears, with Propertymark’s members saying around 2.5% of their fully managed and rent collect or rent management properties were behind in payments.
Void periods shortened on a monthly basis, from two-and-a-half weeks to just over two weeks.
Nathan Emerson, Propertymark’s CEO, 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.
“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 eight 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.”
Propertymark’s senior researcher, Dr Andrew Robert Watson, commented: “In its manifesto, the Labour Party committed to ‘kickstart economic growth by reforming Britain’s economy’. Key economic indicators in July highlight the extent of the challenge ahead.
“Inflation (CPI) rose by 2.2% in the 12 months to July but remained close to the Bank of England’s target. However, the owner-occupiers housing costs component of CPIH increased by 7% in the 12 months to July 2024 pointing to ongoing challenges for homeowners. The base rate remained at a 16-year high although an August base rate reduction is widely anticipated.
“GDP estimates suggest that the economy grew by 0.6% in the 3 months to June, higher than the Eurozone, but less than the USA. With the Autumn budget planned for October 2024, there is not long to wait to hear the new governments plans for ensuring stability and growth.”
