London estate agency Chestertons has reported signs of recovery in the capital’s property market, with buyer enquiries reaching their highest level in 10 months during August.
The agency recorded a 14% year-on-year increase in vendor instructions, suggesting more homeowners are willing to bring properties to market. The figures come as wider economic indicators point to improving sentiment among consumers and businesses.
Tax uncertainty eases
According to Chestertons, the market has benefited from reduced speculation around potential tax changes ahead of Chancellor John Healey’s Budget in October, in contrast to the period leading up to last year’s Budget.
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.”
The agency attributed some of the momentum to what it termed the ‘Burnham bounce’, referring to the early weeks of Andy Burnham’s tenure as Prime Minister. While London auction activity has shown signs of pace, the broader market has experienced volatility in recent months.
Market outlook
Jennings added: “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.”
The reported uptick in activity comes as the property sector navigates ongoing challenges, including increased regulatory pressure on the rental market. Whether the August figures represent a sustained recovery or a temporary uplift will become clearer in the coming months as the market responds to the autumn Budget.
