Property prices rise steadily amid market resilience and economic growth

Despite the end of the relaxed stamp duty earlier in March, London’s property market continues to show resilience, with an increase in both buyer demand and the number of new sellers entering the market. While property prices continue to grow steadily, an expanding economy and a drop in inflation are among the other positives for homebuyers.

Prices in London hit a new record

Rightmove reported a 1.4% (+£5,312) increase in the average price of a UK property coming to the market for sale, which now stands at £377,182. This increase is a larger-than-usual April price rise despite a decade-high number of homes for sale for this time of year.

Similarly, at £699,200, the average price in London is over 85% more than the national average and has grown by 0.5% from last month. While prices in the capital are 0.4% higher than last year, the average time to find a buyer dropped in April from 69 to 65 days.

The end of the SDLT deadline does not dampen spirits

Despite missing the deadline, buyers are going ahead with their plans as there is no sudden spike in the level of agreed sales falling through. An easing of nearly 24,000 in the existing queue of new buyers completing home moves is an encouraging sign for the market.

In fact, market activity remained resilient in April, with new buyer demand up by 5% compared to last year and the number of new sellers coming to market up by 4%. Buyers also expect a potential boost in affordability if the Bank of England (BoE) decides to reduce its base rate more quickly, starting in May.

Economic growth and drop in inflation

According to the latest Office of National Statistics (ONS) data, the UK’s economy grew by 0.5% month-on-month in February. The surprising jump in growth figures is courtesy of a 0.3% expansion in the services sector.
The UK’s annual inflation rate fell to 2.6% in March from 2.8% in February, below analyst expectations of 2.7% in the twelve months to March. However, consumer prices are still above the BoE’s target rate of 2%.

New investment to enhance skills and boost productivity

The Mayor of London, Sadiq Khan, announced an investment of £27 million to fund a skills programme that will help fast-track Londoners into better jobs and boost the capital’s economic output. Aligned with the new London Growth Plan, the scheme will focus on 11 key sectors with high productivity and growth potential, like digital and green jobs.

Focus on Reading and South West London in Hong Kong

As a precursor to the launch of the final phase of Berkeley’s Bankside Gardens in Reading, our office in Hong Kong held an insightful seminar on how landlords in Reading can seek good returns by attracting high-calibre Japanese tenants. The team also successfully showcased The Lanes by Barratt London in the sought-after Springfield Village neighbourhood of South West London.

Spot deals closed for Reading Riverworks in Malaysia

Our office in Kuala Lumpur held an exclusive showcase of Reading Riverworks, which is a brand-new riverside development in Reading Town. Just a three-minute walk to Reading Station, residents can reach central London in just 23 minutes with direct trains to Paddington. The investment potential of this development, driven by excellent connectivity and scenic views, led to several spot bookings by eager investors.

UAE and London properties showcased in India

Our office in India held a special showcase of premium UAE developments by top developers in the region, such as Emaar, Binghatti, Sobha and more. In addition to UAE properties, the event in Mumbai also featured exciting London developments, such as Bermondsey Place, The Green Quarter, Hayes Village, and Fulton and Fifth.

UAE property exhibition coming up in London

This May, our White City branch will host an event led by our property specialists from the UAE. Investors will get an exclusive look into some of the unreleased phases of top developments in Dubai, Abu Dhabi and Ras Al Khaimah. The event will also feature a full consultation on the entire purchase process, including financing, Golden Visa application process and eligibility.

Rents in London continue to soar

The latest data released by the ONS showed that monthly rents in the UK’s private rental sector rose 7.7% to £1,332 over the 12 months ending March 2025. In London, average rents have reached £2,243, the highest in the country, with an annual percentage change of 9.1% in March 2025. Within the capital, the average rent was highest in the inner London Borough of Kensington and Chelsea at £3,639 per month.

As one of London’s leading estate and lettings agents with a legacy of over six and a half decades, Benham and Reeves serves you through 21 branches across the capital and 14 international offices. Contact us to find the right property investments and maximise rental returns.