Spring Rental Market Gains Momentum Amid Ongoing Supply Constraints
The spring market is now in full flow, and the number of agreed sales is increasing weekly, especially in the prime markets. There is a healthy supply of property available for sale across all price ranges, and new buyer registrations continue to grow, with clear signs of greater commitment from those looking to move.
The market remains price-sensitive, and it is essential that sellers do not inflate asking prices if they are serious about selling. However, with more realistically priced properties now the norm, we are seeing the return of multiple offers on the same properties, as buyers recognise this as a good time to buy, particularly with mortgage rates easing in recent weeks.
It is critical that serious movers are ‘paperwork ready’. The conveyancing process is more protracted than ever, so having everything required to exchange in place prior to instruction or offer will significantly reduce both the time to exchange and the risk of a transaction falling through. Please speak to your local Hamptons expert for more specific advice.
Many are asking whether we are seeing an increase in the number of buyers and tenants coming from the UAE since the start of the Iran conflict. With offices in Dubai and Oman, it is no surprise that we have always had a strong two-way flow with these regions, or that we are seeing an increase in interest. Interestingly, however, the area from which we have seen the greatest growth over the past 12 months is North America. With 7,000 affiliate branches worldwide, we are a truly global business, and global mobility trends have never been stronger. If you are considering moving into or out of the UK, either for a primary or secondary residence, please do get in touch for tailored insight and advice.
Investors also appear to be returning to the market, with many viewing this as a good—potentially short-term—opportunity to expand their portfolios. At Hamptons, our sales and lettings businesses work hand in hand, so if you are an investor seeking advice on yields or on where and what to buy, please get in touch.
Mary Beeton, Interim Managing Director
Spring Rental Market Gains Momentum Amid Ongoing Supply Constraints
As the spring market builds towards the rental market’s seasonal summer peak, activity levels are increasing across all price points and geographies. Demand continues to outstrip supply, with April data recording 6.3 tenants per new property. This is up from 5.1 renters per property at the start of the year, and we expect this imbalance to continue to worsen between now and early autumn.
A notable strengthening of demand for prime properties across London and the Home Counties is becoming increasingly evident as families relocate and/or return to the UK. This is earlier in the season than we typically observe, with particularly strong demand from those coming from, or returning from, the USA.
With the Renters’ Rights Act now in place, we have not seen a material increase in asking prices in response to the ban on overbidding. Although demand is strong, affordability and the macroeconomic outlook continue to be the biggest constraints on rental growth. Responsible tenants are not prepared to stretch beyond what is comfortable, while reports of increasing inflationary pressures and risks to employment stability remain prominent. Accurate pricing, therefore, remains key to achieving a swift let.
Catherine Westling, Executive Head of Residential Lettings & PRS
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