London-based estate agency advises now is a "great time to invest or release properties onto the rental market"

The latest statistics from London-based estate agency, Hamptons International, reveal positive signs for the UK housing market.

Month on month, homeowners are now receiving positive news that the property downturn is easing, prices are rising in some areas, and buyers are returning to the market with renewed confidence with increasing levels of buyer registration and insufficient levels of stock to meet the growing demand.

The Land Registry’s first recorded monthly increase in June provides evidence of a price floor being reached with re-sale values now appearing to hold. Asking prices and mortgage approvals are also increasing on a month by month basis, providing more encouraging signs that overall house prices can be supported at their current level.

An increasing number of people are looking to make their dream-move into the countryside, capitalising on the current low prices to trade up. Of those buyers currently searching for a rural property, 12% are registered with a London property address.

The supply/demand imbalance has continued in some parts of the market with competition for prime property. For instance, a leading estate agency, Hamptons International, reports that there has been a distinct correlation between the improving market and the typical length of a sales transaction. During the first quarter of this year, a typical sale was taking 91 days on average to reach an exchange of contracts from commencement of marketing. In the second quarter of the year, this figure had fallen by over 40% to just 51 days.

Hamptons International also found a strong seasonal trend in July, with the demand for houses for rent continuing to increase compared to 2008. Research by the estate agency indicated an uplift of 32% in the number of applicants compared to July last year, with 4.5 applicants for every available property.

“With the improvement in the sales market and less relocation mobility among our clients, we have seen lettings stock levels continue to tighten and a drop in market appraisals,” explains Karen Standing, Regional Lettings Director of Hamptons International.

“This in turn is restricting the choice of rental properties available in some areas and rental levels are now holding at marketing prices. Renewals in the month of July were up by 30% against expected performance, so tenants are choosing to remain in situ and renew for further fixed terms, again impacting on the available choice.

“The overall renewals picture mirrors the London property statistics with 68% of tenancies renewing. With demand particularly high for houses for rent and applicant viewing activity up against last year’s performance, it is a great time to invest or release properties onto the rental market. Properties priced accurately are experiencing minimal voids in this strong marketplace.”

Owned and operated as a subsidiary of Emaar Properties - one of the world's largest real estate companies, Hamptons International is an estate agency which offers an extensive range of properties for sale and rent both in the UK and abroad.

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