Despite the market operating at lower levels compared to last year, Hamptons International's branches are unanimous in their feedback that the quality of buyers is very high and they are committed to their purchase, as evidenced by the number of sales failing (50% lower than last February).

After a lot of fence sitting by buyers there is now a real desire to "get on with it". Vendors also seem more committed to get a deal done now. "Buyers are prepared to commit – but only if the property is correctly priced," said Trevor Rawlings from Hamptons Esher branch.

Country vendors still watching and waiting

The seasonal influx of new stock as yet shows no signs of appearing in Hamptons country regions. However, the situation is improving; their data reveals that more new properties came onto the market than in January, and only 8% fewer new properties than this time last year.

February has seen a noticeable uplift in activity. The main barrier to more sales is vendors’ reluctance to commit to the market before the Spring.

So the expectation remains that Spring will see an influx of fresh stock. However, this is by no means certain in all areas, as the number of potential vendors requesting market appraisals was 10% lower, following a decline of 26% in January in Central Region branches (i.e. north of the M4).

This exacerbates the problem of a shortage of stock for sale, which in turn will continue to support prices and also increase competition among buyers active in the market. Good news for current vendors, says Hamptons.

The shortage of stock is also deterring potential sellers from entering the market, creating a Catch 22:

The stock shortage remains especially pronounced in the Cotswolds, where a lack of property has been the case for well over a year. Viewings and offers remain about 20% lower than last February’s levels, as does the number of new purchasers registering. Sales are approximately a quarter below last year.

Encouragingly, exchanges in Southern branches (i.e. south of the M4) were 3% higher over last February, and sales across all country branches were two thirds higher than in January, clearly demonstrating that activity is increasing.

Country Houses

The £1m+ Country House sector remains fairly buoyant, with a number of good new instructions being taken on, including the high profile £70 million Updown Court in Surrey.

Many current buyers are also returning with renewed confidence after recent months of negative press speculation.  However, Director John Denney points out that the number of buyers is still outweighing the supply of available properties.

"Sellers should come to the market with a full marketing campaign to ensure as much coverage as possible. With recent city bonus payouts, London buyers are actively looking for a suitable country investment," said Mr Denney. "We continue to recommend that vendors should come to the market soon to capture the spring buyers."

London

Good news for vendors in London again this month, says Hamptons. The reported shortage of stock for sale in the capital persists, which is increasing competition among buyers and underpinning prices.

As in the country regions, the seasonal influx of new stock shows no signs of appearing; the number of potential vendors fell by 12% over last February and, although 16% more new properties came onto the market than in January, this was still 22% fewer than last year.

"We are selling property faster than we are replacing it and there is now a veritable shortage across the capital," said Marc Goldberg, sales director

The Price Must Be Right

Combined with mixed messages in the press, the stock shortage is adding to the problem of overpriced properties, as some vendors are unwilling to adjust their prices in line with the current market. Overpriced properties sit on the market as buyers are very aware of the price levels - not least assisted by the internet which makes local price comparison very simple.

Any overpriced property stands out and will not attract buyers, unless it has something very special to offer.