April Newsletter
A Strengthening Market?
If you’re up to date with London property news, the chances are you’ve seen mixed headlines over the last few weeks. However, there are a few key indicators that the market is starting to strengthen – price premiums have increased, homes are selling quicker and there has been growth in demand for mortgages. There is a consensus that while the economic outlook is uncertain, buyers want to move rather than trying to time the perfect time to buy. If you’re looking to buy, now could be a good time ahead of a potential strengthening of the market.
According to the Financial Times, asking price premiums increased, signalling a potential rebound in the London property market. “A home in London is more likely to sell above its asking price than elsewhere in England and Wales for the first time since 2016, underlining evidence of a rebound in the capital’s housing market. A quarter (25.1 per cent) of London homes for sale have gone for more than their asking price in the first three months of this year, slightly ahead of the 24.5 per cent figure for England and Wales as a whole.”The time it takes to sell a home has also improved. In the first three months of the year, it took 57 days for a home to receive an offer, a big improvement to the 87 days it took in 2023.
In other good news, agents in the UK have recorded a rise in demand over the last three months. This is in part due to the calming of inflation rates and the hope that the bank of England will start lowering interest rates later in the year. According to the Financial Times, “UK lenders reported a return to growth in the demand for mortgages in the first three months of 2024, according to the latest official data, providing further evidence of the property market stabilising”.
To help put this potential rebound into context, London has just been named Europe’s most resilient city, coming in third place internationally (after New York and Tokyo). London scored particularly high for its knowledge economy and tech ecosystem. It also scored high for its education “which in turn supports knowledge industries and economic growth, and by robust property rights and governance (by international standards); something important to cross-border and real estate investors who value security of title and stability”.
London’s resilience is a very important point that I bring up with clients. While I can happily quote market forecasts and give an opinion of where I think the market is heading, no one has the power of a crystal ball and therefore can’t fully rely on forecasts. What buyers can rely more on is that London property has historically been a haven for international investors who live in more volatile parts of the world, making it a stable/resilient, long term investment.
If you’re looking for a property to buy in London, please email iyad@iyadgrahne.com. Working with a buying advisor will ensure that you have all the elements in place to act swiftly, while providing you with a significant edge over other buyers. A buying advisor will ensure you buy right – the right property, at the right price, in the right location. Having access is key in a busy market, and buying agents have access to properties before they hit the open market.