10 new prospective renters for each available property in February – report

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Round 10 new potential rental sector tenants have been registered for every accessible property in February, in line with a property professionals’ physique.

Though the typical variety of new candidates registered per company department decreased in February 2024, a discount in inventory ranges has meant that demand continues to outstrip provide, Propertymark mentioned.

Rental arrears remained pretty static in February 2024, the report mentioned.

Nathan Emerson, Propertymark chief govt mentioned: “Within the residential lettings sector, tenant demand has marginally decreased.

“Nonetheless, inventory ranges have additionally decreased and total, demand continues to outpace provide, the truth is, there have been round 10 new candidates registered in February for every accessible property.

“Rents proceed to fluctuate by location and property sort, though there are some indicators of stabilisation.”

The report relies on responses to a month-to-month survey of Propertymark member brokers throughout the UK.

The findings have been launched as commerce affiliation UK Finance mentioned that the worth of latest buy-to-let lending for the UK within the fourth quarter of 2023 was £6.3 billion – a 55.4% fall in contrast with the identical quarter within the earlier yr.

In indicators of mounting prices for landlords, the typical rate of interest throughout all new buy-to-let loans within the UK jumped to five.70% within the fourth quarter of 2023, up from slightly below 3.67% a yr earlier.

As 2023 drew to a detailed, there have been 13,570 buy-to-let mortgages in arrears higher than 2.5% of the excellent steadiness – 123.9% larger than in the identical quarter a yr beforehand.

Purchase-to-let repossessions have been 56.3% larger than a yr earlier within the fourth quarter of 2023, with round 500 circumstances recorded.

A weblog on the UK Finance web site mentioned: “With larger charges decreasing profitability, we now have seen weaker demand for brand spanking new BTL (buy-to-let) loans for home buy, starkly mirrored within the worth of latest BTL home purchases falling 56% in (the fourth quarter of) 2023 in contrast with the ultimate quarter of 2022.

“At £1.8 billion this was, excluding the housing market shutdown in the course of the early pandemic months, the bottom stage of exercise since 2013.”

The weblog, collectively written by Ermir Selmani, analyst, information and analysis at UK Finance and Ronnell Reffell, supervisor, mortgages coverage at UK Finance, continued: “Simply 0.68% of all BTL mortgages are in arrears – that is decrease than within the residential sector, because it has been for a few years.

“Mortgage lenders stay ready to assist landlords scuffling with mortgage funds – providing forbearance tailor-made to the person landlord’s circumstances. It’s, due to this fact, very important that landlords attain out to their lender as quickly as doable if involved about their funds.

“Regardless of the present challenges going through the sector, rental demand stays robust, and most landlords are displaying resilience.”