Viewing numbers and buyer interest declined in June as the housing market entered its usual summer lull, data from an estate agency group showed.
The average number of prospective buyers per estate agent branch fell from 74 in May to 69 in June, while viewing numbers also dropped marginally, according to the Propertymark housing insight report for the month.
Nathan Emerson, CEO of Propertymark, said: “June marks the beginning of the Great British summer and a seasonal change in the activity of homebuyers. Key demand metrics, including the number of prospective buyer registrations and the number of viewings, have reduced slightly as consumer attention turns to the holiday season.
“The general election has also had a moderate effect. Although we expect activity to remain subdued in July, pent-up demand and robust stock levels will see increased activity towards the end of the summer period.”
Emerson said a base rate cut would “stimulate the market”, a view reflected by the industry’s reaction to the Monetary Policy Committee’s (MPC’s) decision this week.
There was also a fall in new housing supply, as sales instructions decreased monthly to an average of 10 in June.
Meanwhile, the amount of available housing stock per estate agent remained static.
Market appraisals, which indicate future housing supply, declined from 24 per branch in May to 22 in June.
The number of agreed sales dropped during the month, while the exchange time stayed lengthy, with most transactions taking over nine weeks to complete.
Tenant demand increases
Propertymark’s report found there was a small increase in tenant demand for rental homes, rising from 97 new tenant registrations per branch in May to 99 in June.
Further impacting the supply/demand imbalance, there was a small contraction in properties available for rent at each member branch.
In June, there were nine new applicants registered for every available rental property, with Propertymark saying demand continued to outstrip supply.
There also was a slight reduction in the number of new tenancies agreed, while void periods were largely unchanged at two-and-a-half weeks.
Emerson added: “In the residential lettings sector, supply and demand remains imbalanced, with tenant demand increasing in June and stock levels marginally decreasing.
“Rents continue to rise overall, but there are clear regional and market variations. Overall, we share our members’ optimistic outlook for each sector and look forward to working with the new Government to drive positive change within the housing system.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Housing market activity enters seasonal lull in June – Propertymark
