Buyer registrations fell to an average of 55 per branch in June, while rental demand remained strong at around nine applicants for every available property, according to Propertymark’s latest Housing Insight Report.
The figures suggest that the UK housing market remains active, but buyers are becoming more cautious and selective. Sales agreed averaged 7.8 per branch, showing little change despite the fall in new buyer enquiries. Meanwhile, 84% of agents reported that most properties were selling below their asking price.
For landlords, the figures highlight two different sides of the market. Those looking to sell may need to be more realistic with pricing, while landlords continuing to let properties are still benefiting from strong tenant demand and limited supply.
Sales Market Remains Cautious
Propertymark reported that average viewings remained broadly stable at 2.1 per available property in June. The amount of available stock also showed little movement, averaging 42 properties per branch.
New property instructions averaged 9.5 per branch, while agents carried out an average of 22 market appraisals.
The relatively stable number of agreed sales, despite fewer buyer registrations, suggests that transactions are being supported by people who are already committed to moving rather than a significant improvement in overall buyer confidence.
This could make the market more challenging for sellers, particularly where properties are overpriced or require significant investment before they can attract buyers.
Rental Demand Remains Strong
The lettings market continues to tell a different story.
Propertymark found that there were still around nine applicants competing for each available rental property in June. This figure remained unchanged from previous summer reports, showing that the shortage of rental homes continues despite the more cautious conditions in the sales market.
For landlords, strong tenant demand can help support occupancy levels. However, affordability remains a concern, with higher rents and household costs potentially putting additional pressure on tenants.
This could have implications for landlords when considering rent increases, tenant affordability, arrears risks and void periods.
Mortgage Activity Could Affect Confidence
Propertymark chief executive Nathan Emerson highlighted concerns about falling mortgage approvals and reduced mortgage lending.
He said that the decline in mortgage activity could influence market sentiment over the coming months, particularly with the Autumn Budget approaching.
Higher borrowing costs have already made it harder for some buyers to meet affordability requirements. If mortgage activity continues to weaken, this could further reduce the number of active buyers and increase pressure on sellers to negotiate.
What This Means for Landlords
The latest figures suggest that landlords looking to sell should not assume that properties will attract strong offers simply because the wider market remains active.
With buyer registrations falling and most properties selling below asking price, pricing is becoming increasingly important. This could be particularly relevant for flats, properties requiring refurbishment and tenanted properties, where buyers may factor higher financing and improvement costs into their offers.
Landlords who intend to remain in the rental market are facing a different situation. Demand continues to significantly outweigh available supply, which should provide ongoing demand for suitable rental properties.
However, strong tenant demand does not remove affordability concerns. Landlords still need to consider whether proposed rents are sustainable for their target tenants and ensure they are prepared for potential arrears or longer-term affordability pressures.
A Market That Is Moving, But Carefully
June’s Propertymark figures do not point towards a housing market collapse, but they do show a market where buyers are becoming more selective.
Sales are continuing, but buyer interest has softened and negotiations remain common. At the same time, rental demand remains considerably stronger than available supply.
For landlords, the message is relatively clear: selling may require more realistic pricing, while rental properties continue to benefit from strong demand. As mortgage activity, affordability and government policy continue to influence confidence, landlords should keep a close eye on both sides of the market when making investment decisions.
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