The UK housing market faces many challenges in 2023, from inflation and interest rate changes to falling house prices. However, the Zoopla House Price Index for May brings some positive news, showing promising signs of recovery with a surge in buyer demand.
Data showed that buyer demand has hit a new high for the year, soaring by 14% compared to 2019 after the Easter break. First-time buyers were the largest group in sales in 2022, accounting for over a third, followed by existing homeowners using a mortgage (31%) and cash buyers (25%).
The rise in first-time buyers reflects steeply rising rents, which have increased 11% over the last year alone and are pushing renters to consider buying instead. It's also partly down to a severe shortage of homes for rent, with a third fewer rental homes available than the long-run average.
What’s more, the Bank of England forecast that by the end of 2023, monthly mortgage repayments for buy-to-let landlords would typically rise by about £175. The increasing cost pressures on landlords bring about an increased urgency to manage their properties efficiently and effectively.
For this reason, OnTheMarket’s (OTMP,)TecLet platform, which provides a streamlined onboarding process for its landlords and tenants, is well-aligned to meet the current needs of landlords. Perfectly placed in the current landscape, OnTheMarket told investors this morning that Arun Estates, one of the largest estate agency groups in the UK, has signed an agreement to use OnTheMarket Software's TecLet platform across its entire lettings business.
The platform offers automated pre-tenancy and property management, including renewals and changes of sharers. TecLet's interactive portal operates 24/7 while ensuring full legal compliance. Its benefits include integration with various service providers, such as E-document Signing (Finch), Open Banking Referencing (Let Alliance), and an alternate deposit option (Flatfair).
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Another significant milestone for OnTheMarket, demonstrating that it is making strides towards being established as more than just a property portal, with continued sign-ups to its software solutions showing the added value it can provide to agents.
OnTheMarket Software's TecLet platform is designed to simplify the lettings business by automating the majority of administrative tasks. This platform is user-friendly and can be accessed on a variety of devices, making it convenient for agents to manage their work and stay open for business 24/7. By adopting TecLet, agents can ensure that they remain fully compliant with legal regulations. This is particularly important given the increasing regulatory burdens on buy-to-let landlords, with the secretary of state planning to strengthen tenants’ rights with greater regulation in 2023.
OnTheMarket remains a great value offering for agents and housebuilders,with an advanced suite of data and market intelligence services, explaining the company outperforming in its latest trading update against a challenging macroeconomic backdrop.
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