Spring market gains pace with rising instructions and strengthening buyer commitment
February was a month of continued increasing activity in Hamptons’ London and South East sales markets, with 42% more new properties coming onto the market compared with January and a 20% increase in sales agreed.
Whilst some buyers will understandably feel more cautious given the recent escalations in the Middle East and the resulting economic impact, the vast majority remain committed to moving, and this picture of stability is shown in a reduction in fall-through rates (-23%) over the last month.
The market does, however, behave differently in different areas and price points, and sentiment can change quickly – for the better or worse – so our advice is always to speak regularly to your local office to keep in touch with the very latest updates.
With the sun at last starting to shine, we anticipate a busy Spring market.
Mary Beeton, Interim Managing Director
Lettings market shows continuing buoyancy as Spring arrives
Hamptons’ latest data continues to challenge headlines suggesting a mass landlord exit ahead of the Renters' Rights Act, coming into force on 1st May. In February, the number of new rental homes entering the market rose by 6% year on year, while tenant demand also grew, up 4% on last February. Average rents increased by 3.6% annually, offering reassurance to landlords and reminding tenants of the importance of acting decisively when the right home becomes available. With demand still outstripping supply, rental growth is likely to continue in the months ahead.
Demand last month was particularly strong for 4+ bedroom family homes outside London, where competition was highest, and rents saw the steepest annual growth across all property sizes.
As expected, fixed-term tenancies have shortened in the run‑up to 1st May, when all Housing Act tenancies transition to a periodic format. Even so, both landlords and tenants appear aligned in their understanding that real commitment, on either side, tends to change only when personal or financial circumstances do. Landlords will continue to buy and sell when conditions feel right, and tenants will continue to move when their needs evolve.
Overall, rental market conditions remain stable and entirely normal, with supply, demand and affordability continuing to shape activity. While it’s important for landlords to be prepared for the upcoming legislative changes, it is equally important to recognise that these changes alone are unlikely to materially shift day‑to‑day market behaviour. The fundamentals remain strong, and confidence should remain steady as we move into spring.
Catherine Westling, Executive Head of Residential Lettings & PRS
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