High-end estate agency Strutt & Parker says its research points to a sales market recovery underway in some parts of the UK.
A market snapshot produced by the company points to “increased clarity and confidence in the market, coupled with the stabilisation of rising mortgage rates following the turbulence at the end of 2022.”
In particular it highlights London, the south east and parts of eastern England showing the strongest signs.
Louis Harding, head of London Residential at the agency, comments: “We are beginning to see clear signs of a rebound in Prime Central London. Demand for property over £5m has significantly increased which demonstrates the strength of the market.
“Buyers in this bracket are less dependent on debt and favour property as an asset class in high inflationary markets. If the momentum continues, which we are confident it will, the PCL market should begin to see sustained value growth over the medium term.
“Mortgage rates have stabilised and new products are enticing buyers back in to the market. Likewise, motivated sellers who need to move are coming to the market with realistic expectations and this presents an opportunity for buyers in the coming 12-months.”
The agency says falling inflation is expected to improve confidence and result in more sales nationwide.
Provisional data for Q1 2023 indicates that 18 per cent of transactions in the east and south east of England in the first three months were over £1m.
This sector has increased from just 11 per cent in 2020 and Strutt says that in recent weeks agents have reported an uplift of both applicant numbers and instructions.
Kate Eales, head of regional agency at Strutt & Parker, adds: “It’s clear that for many, urban locations with excellent commuting links are once again a priority. While hybrid working is still having a transformational effect on overall buyer criteria, there are some signs that people want to have a closer connection to their workplaces.
“From a seller perspective, we are also seeing a steady rise in vendors this year looking to downsize. With significant equity built up, often over decades, many are motivated to sell now to release money so they can help children or grandchildren make a first or second step on the housing ladder, in light of increased mortgage rates. This trend should see more coveted family homes coming to the market and is encouraging for young families who are making a big ‘forever’ move.”