Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Sales Market Stabilises as Rental Sector Faces Ongoing Supply Pressure

The UK residential property sales market became more balanced in May, with more homes for sale and slightly reduced buyer demand, according to the latest Propertymark Housing Insight Report. In contrast, the rental sector continued to experience strong tenant demand and a shortage of available properties.

The report found that the average number of new prospective buyers registering with each member branch fell to 64 in May. Meanwhile, the average number of properties available for sale increased to 44 per branch, offering buyers more choice than in previous months. These figures indicate that supply is beginning to catch up with demand, creating a more stable environment for estate agents and consumers.

In the lettings market, tenant demand strengthened during May. However, the average number of rental properties available per branch dropped to 12.09, resulting in an average of eight applicants competing for every available home. Propertymark highlighted that this ongoing imbalance between supply and demand continues to place pressure on tenants and letting agents.

There was a slight improvement in rent arrears, with the proportion of member agents reporting arrears issues easing to 2.1%.

The latest figures underline the contrasting situations in the sales and lettings markets. While sales are becoming more balanced as stock levels recover, the lettings sector remains under pressure due to limited supply and high tenant demand.