Both rental and buyer enquiries rise for Chestertons

Confidence is returning to London’s housing market, according to Chestertons, which has reported its strongest level of buyer enquiries through its sales portal in ten months. Rental enquiries have also risen.

Vendor instructions increased by 14% year-on-year, which the company said signalled growing confidence among sellers.

In August, new instructions to Chestertons increased by 63.9% and the company also recorded a 7.8% month-on-month increase in sales agreed.

Adam Jennings, head of residential at Chestertons, said: “Months of rumours about potential tax changes, many of them related to property, impacted activity levels in the housing market last year, particularly in the capital.

“After a challenging few months in London’s property market, greater clarity around the economic outlook is helping to support confidence among buyers and sellers.

“Combined with improving consumer sentiment and the renewed activity we are seeing across our London network, there are reasons to be optimistic about the market’s trajectory in the months ahead,” he said.

Rental enquiries up 13% year-on-year

In the rental market, Chestertons said it has also seen a 13% year-on-year increase in enquiries from prospective tenants. Previously, year-on-year enquiries had fallen during each of the five months leading up to the introduction of the Act on 1 May, before rising by 17% in May, 10% in June and falling to -7% in July. Meanwhile, new landlord instructions increased by around 6% year-on-year.

Katinka Hill, head of lettings at Chestertons, said: “We expect this momentum to continue into September now that schools have returned and people are back from holiday.

“Achieved rental prices are holding firm, which is a positive sign. A notable trend we’ve seen since the Renters’ Rights Act took effect on 1 May is that tenants are taking longer to make decisions, weighing up their options more carefully. This is because they have increased flexibility to move, and there are plenty of quality homes to choose from.’’