A steady, confident start to the year for sellers and buyers alike
The positive start to the year continues, with a steady flow of new properties coming onto the market across London and the South East, and healthy demand from buyers eager to find a property while mortgage rates are low and before the Spring market brings more competition.
The market continues to be price-sensitive and accurate pricing remains key. Where properties are priced competitively, they are going under offer quickly, and we’ve even seen competitive bidding for the best homes, particularly in the Prime Country markets.
The length of time it takes between a sale being agreed and the exchange of contracts continues to frustrate many and can put transactions at risk, especially if there is a chain involved. Our advice to anyone seriously committed to selling is to engage a solicitor as early as possible in the process, and be ‘contract ready’, ideally before you go onto the market, but certainly before a sale is agreed. This will ensure that your buyer has all the information they need ‘up front’ and will save you precious weeks – and potentially the sale. Equally, motivated buyers should be ready with a mortgage in principle and a conveyancing solicitor appointed, on standby for when a sale is agreed.
Whilst saying this isn’t going to grab any headlines, the best way to describe the market today is ‘back to normal’. Prices are steady, supply and demand are steady and – for most people – this makes it an attractive time to move.
Mary Beeton, Interim Managing Director
Executive relocations drive new year rental demand
The month saw a 9% increase in new instructions compared with a year ago, and demand continued to outstrip supply by a ratio of 5 renters for every new listing. Average rents rose 3.7% year-on-year in the month, evidencing that rental growth remains strong for landlords and motivating tenants to commit quickly to avoid paying more over time if they delay. Demand from relocating executives remained strong, with international work placements continuing to bring significantly greater numbers of high-calibre tenants into London and the South East.
Ahead of the Renters' Rights Act landing in May, we are increasingly seeing landlords seek our guidance and advice about how to navigate the changes ahead. Importantly, however, our data shows a record number of buy-to-let companies being created last year, which offers an alternative perspective to the current narrative around a mass exodus of landlords from the market. We are seeing landlords adapt, not exit.
Your local Hamptons team is on hand to offer guidance, advice and practical solutions (through a range of new, soon-to-launch services) designed to help landlords navigate the Renters' Rights Act when it comes. There is no reason to fear the changes, so please reach out if we can be of assistance.
Catherine Westling, Executive Head of Residential Lettings & PRS
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