Appraisals down in pre-Easter trading, reveals Propertymark

Market appraisal volumes dropped 7% in March according to Propertymark’s latest market snapshot, based on data from up to six weeks ago.

The data shows a 4% increase in potential buyers registered per member branch; there was also a small rise in viewings in March 2024, although this remained broadly in line with the same period in 2023.

Propertymark chief executive Nathan Emerson says: “Interest rates remained static in March 2024, and although the changes were small, GDP and inflation continued to move in the right direction. Barring global shocks, we remain optimistic that inflation will continue its downward trend, eventually allowing for interest rates to be reduced.

“Demand increased within the residential sales sector, with the number of buyers registered and the number of viewings per property both increasing. On the supply side, new instructions decreased slightly. Stock levels also decreased but remain on par with the same period last year.”

On the rental side Property says the average number of new prospective tenants registered per member branch decreased from 89 in February 2024 to 82 in March.

Stock levels tend to fluctuate month on month, and although they increased in March, they remained within established parameters. 

However, despite being slightly weakened, demand continued to outstrip supply, with around nine new applicants registered for each available property in March.

On the critical point of rental affordability, Propertymark reports: “A small majority of members have reported that rents have remained the same in each
month over the last five months. However, in the same period, a larger proportion of agents have reported seeing rents rise than fall.”

Two other measures were reported by Propertymark agents: arrears reduced in March with members reporting that around 2.5% of fully managed and rent collect/ rent management properties were in arrears, while the average void period increased slightly in March but remained within long-run parameters.

Emerson says of the lettings data: ”Legislative change including the Renters (Reform) Bill and Housing (Scotland) Bill, continues to dominate the wider discourse. We continue to work with our members to lobby for change that supports investment, minimises unintended outcomes and enables a well-functioning housing system.”