Renewed confidence post-Budget as exchanges double
At last, the Budget is behind us. And, as I hinted in my previous update, the detail mattered far less than the certainty it delivered. After months of speculation - kite-flown policies and leaks included - the clarity has injected fresh confidence across the market, most notably in the prime sector.
For some owners of homes worth over £2m, the new mansion tax will have a financial impact - particularly those who’ve held their properties for decades or inherited them and find themselves ‘asset rich, cash poor’. But for the majority, the sums involved are modest. Buyers who can afford to purchase a £2m property today can usually comfortably absorb the additional £208 a month this change brings.
While a few movers raced to exchange before the Budget, the real story unfolded afterwards. Hamptons recorded a 58% jump in exchanges in the week following the announcement compared with the week before - a clear sign of renewed confidence.
The uncertainty that had clouded the market has lifted. And with visibility restored, buyers and sellers are pressing ahead. The pipeline of homes preparing to launch with Hamptons in the New Year looks strong, and that will draw more buyers into the mix - alongside those who’ve been patiently viewing for weeks. All signs point to a lively start to 2026.
Mary Beeton, Interim Managing Director
Signs of balance emerging in a still-competitive rental market
As we approach the end of 2025, the rental market remains as buoyant as it’s been all year - despite media speculation to the contrary. Buy-to-let has proven resilient, with demand remaining strong throughout the year. On average, six tenants competed for every new rental property, and rents rose by 3% across smaller property portfolios (up to two bedrooms). Larger family homes held steady, with only a gentle softening of prices towards the upper end of the market, where competition has been less strong.
With the Budget now behind us, the landscape, whether welcomed or not, is clearer. As we move into 2026, the removal of uncertainty offers landlords a chance to plan with confidence. Now is the time to review cash flow, property condition, and borrowing arrangements to ensure portfolios are well-positioned for the year ahead. Tenants, too, are becoming more discerning. Choosing the right agent, or landlord if renting directly, is key to ensuring tenancies are properly managed and properties are well-maintained.
While regulatory and tax reforms loom (including the Renters' Rights Act, being implemented from 1st May 2026, and the phased rollout of Making Tax Digital from April 2026), we have seen few signs of a mass landlord exodus. Many landlords are adapting to the evolving landscape, rather than exiting. With headroom for further mortgage rate cuts and continued rental price growth in 2026, the outlook remains optimistic.
Catherine Westling, Executive Head of Residential Lettings & PRS
We wish all our clients a very happy holiday season and a prosperous new year!
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