Why the Hampstead and NW3 property market is showing signs of recovery

From time to time, the Hampstead and NW3 property market, like the wider London market, enters periods of caution, with transaction levels falling below expectations. This year has been a clear example. Increased housing stock has given buyers more choice, encouraging many to wait patiently for the right property. A major contributor to this hesitancy was the longer-than-usual wait for the UK Autumn Budget, with both buyers and sellers choosing to remain on the sidelines until the Government’s tax intentions became clearer.

At a local level, here in our Hampstead sales office, we have seen prices in the NW3 postcode soften slightly. However, there have been no sharp corrections, which is very much in keeping with the traditionally resilient nature of this distinctive pocket of north-west London.

Why Hampstead property remains in demand despite market uncertainty

As ever, accurate pricing is key to achieving a successful sale in the Hampstead property market, particularly in an area where cash buyers are so prevalent. With average property prices well in excess of £1million across the NW3 postcode, there may be some room for negotiation, but sellers must remain realistic.

As we now wrap up the end of the year, there is a growing sense of pent-up demand following the Budget, and those looking to sell will benefit from moving decisively. While softer market conditions are likely to persist into 2026 due to ongoing macroeconomic and policy headwinds, Hampstead continues to stand out as a highly desirable location compared to many other prime inner London areas. Even Hollywood seems to agree: power couple Ryan Gosling and Eva Mendes apparently relocated to the area with their children last October.

Pent-up demand drives post-Budget property sales in the NW3 postcode

In the final quarter of the year, we have witnessed a noticeable uplift in post-Budget activity, underlining the strong appetite to buy when pricing is right within the NW3 property market. An unmodernised five-bedroom house on Roderick Road attracted twenty-seven viewings in just ten days, generating seven offers from five separate parties. It ultimately sold to a surveyor for £1.8 million.

Nearby on Fellows Road, a truly special artist’s studio apartment with a double-height ceiling was viewed forty times over a three-week period and received seven offers. It was quickly secured by a cash buyer for just under £600,000. These examples highlight how well-priced Hampstead and Belsize Park homes continue to perform, even in more cautious market conditions.

Local property expertise delivers long-term value in Hampstead

A further example of our deep-rooted knowledge of the Hampstead property market dates back more than twenty years. We originally helped a purchaser acquire a three-bedroom flat on Frognal Lane for £575,000. Recently, we were delighted to assist with its resale for more than double that figure. During the intervening years, we also managed the rental of the property while the owner was working overseas. This continuity of service underlines the value of long-standing relationships within the local community and demonstrates why experienced, local expertise continues to make a measurable difference in the Hampstead property market.

If you are thinking about selling your NW3 property or letting it, get in touch with our Hampstead sales team, we will be very happy to carry out a full market appraisal with no obligation.