The number of new properties coming to market has increased by 18% between January and February, Propertymark has found.

In its latest report, the professional body for the property sector also revealed that stock levels jumped by 9% month-on-month.

Despite these increases, the number of potential buyers registered has decreased by 3% in the same period.

This comes as house prices continue to rise marginally, jumping by an average £1,264 in January 2024, according to the Office for National Statistics.

Furthermore, the number of adults who have stated that it is "very" or "somewhat" difficult to pay their rent or mortgage has continued on an upward trend.

Propertymark also found that mortgage arrears are also on the rise, with the amount of loan accounts in arrears jumping to over 180,000 in Q4 2023.

The report is based on responses to a monthly survey of Propertymark members, with analysis based upon data provided by around 100 sales and 100 letting agents across the UK.

Chief executive officer at Propertymark, Nathan Emerson, said: "Interest rates remain challenging, GDP has stagnated and broader economic indicators, such as mortgage arrears are trending upwards."

However, the average number of sales per member branch at Propertymark has jumped by 19% month-on-month, with the number of properties selling at below asking price also increasing.

Propertymark has therefore suggested there is now a "buyer’s market".

Despite this, the report highlighted that the rental market shows a different picture. The number of properties available to rent has dropped by over a quarter (26%), with the number of new tenancies signed also decreasing by 16%.

Emerson added: "There is light at the end of the tunnel, with inflation continuing to fall. In the residential sales sector, demand has temporarily slowed following the January post-Christmas bounce. On the supply side, our members are busy with new instructions, which is increasing stock levels.

"This imbalance may lead to further price corrections but only in the short-term. In the residential lettings sector, tenant demand has marginally decreased. However, stock levels have also decreased and overall, demand continues to outpace supply, in fact, there were around 10 new applicants registered in February for each available property.

"Rents continue to fluctuate by location and property type, although there are some signs of stabilisation. As we progress into March and beyond, the re-establishment of seasonal trends should result in positive progress in both the sales and lettings sectors."

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