Recent Data Reveals Increase in Buy-to-Let Supply & Sales

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Propertymark Data Reveals a Housing Market Primed for Activity

The Propertymark Housing Insight Report for January 2024 reveals a significant increase of 120% in the number of potential buyers entering the market compared to December. In addition, it also shows an increase in average stock levels and sales agreed.

The figures suggest that, despite a slight uptick in activity compared to 2023, the property market remains less vibrant than in 2022. However, this could be seen as a sign that the UK housing sector is returning to normal levels following a considerable economic boom post-Covid.

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Supply & Sales Up – But Asking Prices Still Unstable

In January, the supply of new homes increased by approximately 79% compared to the previous month, reaching around eight homes per member branch. This aligns closely with the activity levels observed in both 2022 and 2023.

With the rise in supply, average stock levels also slightly increased in January 2023. Moreover, stock levels in January 2024 surpass those in the corresponding periods of both 2022 and 2023.

The agreed sales per member branch experienced a post-Christmas boost, climbing from about four in December 2023 to around six in January 2024. These figures are consistent with the performance recorded in the same months of 2022 and 2023, as indicated by the data.

This month, fewer agents reported properties selling below the asking price, accompanied by a corresponding uptick in properties selling at or above the asking price. However, a misalignment persists between valuation levels and market expectations. As activity increases, we may see asking prices become firmer, meaning investors may want to consider buying an investment property sooner rather than later to take advantage of potential discounts.

Pro Tip: If you are new to buy-to-let investment, you may want to consult a UK property investment company to help you understand the intricacies of the property market.

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Landlord handing keys to the tenant after signing contract for a short term let

What Did the Propertymark Report Say About the Rental Market?

In January 2024, each member branch recorded a rise in new prospective tenant registrations, climbing from 63 in December 2023 to 97. The stock levels have seen improvement post-Christmas, reaching an 18-month high.

Despite the positive development in stock levels, the demand still surpasses the available stock. This means rental growth should remain elevated for now, offering potentially higher gross yields than is typical for certain areas.

On average, each member branch had about eight new applicants for every available property, a decrease from the previous year but highlighting a continued mismatch between supply and demand.

Following the holiday season, tenants are eager to move, leading to a rise in the average number of new tenancies agreed upon per member branch in January 2024. However, this number is slightly less than in January 2023.

Further Reading: Whether you’re interested in the London property market or Manchester Property Investment, our expansive resources cover everything you need to know when investing in property as a beginner!

How Did Propertymark React to the Housing Insight Report?

Nathan Emerson, Propertymark CEO, had the following to say about the Propertymark Housing Insight Report:

“In the residential sales sector, there has been a 120% increase in the number of potential buyers registered. On the supply side, there has been an 80% increase in the number of properties coming to market. However, whilst the gap is closing, there remains a mismatch between valuations and market expectations, with most members noting that properties are still selling at below asking price.

“The lettings sector has also rebounded after the festive break, with a positive increase in the number of prospective tenants registered and the number of properties available to rent. However, this will be a challenging year for the UK’s private rented sectors due to a plethora of proposed legislative changes.”

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