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Home NewsProperty market updates Confidence in the UK property market continues to increase

Confidence in the UK property market continues to increase

Positive economic news continues to boost confidence amongst UK property buyers.

Market stability is improving noticeably now that interest rates have remained steady since September. And as new mortgage deals at lower interest rates become available, we are seeing more enquiries from buyers, more offers being made and a greater level of activity in the market than for some months.

Interest rate held for fifth consecutive month

Homebuyers welcomed the news that the Bank of England has maintained the interest rate at 5.25% – for the fifth consecutive month.

Inflation falls lower than expected

UK inflation fell again, and further than had been anticipated, to 3.4% in February.
This is down from 4% in January, so inflation is at its lowest since September 2021. Many commentators are now reporting that they believe inflation should reach the Bank of England’s target rate of 2% by the summer.

House prices holding up well

Halifax, the UK’s largest mortgage lender, reported that in February the average UK house price was up 0.4% since January, rising for the fifth consecutive month.

They also reported that London house prices increased by 1.5%, the first positive annual house price growth since January 2023. London continues to have the highest average house price – at £536,996.

UK property

Market stability boosting buyer confidence

For much of 2023 buyers were hesitant, concerned about high interest rates and inflation. With mortgage offers changing almost daily, there was real uncertainty, slowing the property market.

But as economic data continues to strengthen, boosting buyer confidence, we are seeing more enquiries from committed buyers keen to move and more offers being made.

This more buoyant market is a welcome sign as we move into spring, our busiest time of year, and our 21 London branches are busy with enquiries across the capital.

Property events taking place across Asia

With market activity building, we are expanding our programme of property events and overseas showcases in 2024.

Directors Anita Mehra

Directors Anita Mehra and Marc von Grundherr visit Taiwan, Hong Kong and Jakarta

Anita Mehra and Marc von Grundherr will be visiting Taiwan, Hong Kong and Jakarta in April to meet clients and share their insights and experience investing in London property. They’ll also be highlighting the best deals available right now.

To book your slot, click here.

High yield property investments showcased in Malaysia

Our Malaysia office has just held an exciting launch event in Kuala Lumpur, featuring new high yield, investor-grade developments. The event featured hand-picked, high quality developments located close to efficient transport links, a priority for London’s renters.

The Malaysia team are holding one-to-one meetings with interested buyers in Penang (March 30th and 31st) and Ipoh (April 6th and 7th).

Find out more here.

Hong Kong office launches Chelsea Waterfront

April sees the launch of Powerhouse at Chelsea Waterfront, SW10, by our Hong Kong office. This is an exciting new development in one of London’s most desirable riverside locations, with panoramic views of the Thames.
Our Hong Kong launch events take place on April 11th and 12th.

Launching the latest phase

New property showcases in India

Our India office is busy preparing property showcases in Mumbai and Delhi, launching the latest phase of Wembley Park Gardens by Barratt London.

This landmark development in North-West London is in an emerging regeneration hotspot just a 12-minute tube journey from central London.

Our launch events take place in Delhi on 20th and 21st April and in Mumbai on 27th and 28th April.

Middle East team visit Nairobi to launch Wembley and Hendon developments

Our Middle East team recently carried out a successful launch in Nairobi, showcasing Barratt London’s most exciting new developments in Wembley and Hendon, North London. The event was well attended by investors looking for investment opportunities offering yields of up to 6%.

If you missed the event, please contact our local Middle East office for more details.

London rental market heats up as we move into spring

The London rental market remains strong, and we have waiting lists of fully referenced applicants for every available rental property.

According to the Office for National Statistics (ONS), the cost of renting in the UK has reached a new high. Average rents across the UK increased by 9% in the 12 months to February 2024, the highest rise recorded by the ONS.

In London, average rents reached £1,276 per month, an increase of 10.6% over the last year.

New apartments completing now

Fortunately, we are seeing new developments and apartments launching throughout the year so availability is improving.

These range from 250 City Road EC1, White City Living W12 and One Thames City in Nine Elms SW8 to newer communities on the fringes of London such as Eastman Village in Harrow HA1, Grand Union in Alperton HA0 and The Green Quarter in Southall UB1.

Contact Benham & Reeves if you are buying, selling or renting a property in London

Contact your nearest branch if you are buying, selling or letting a London property. We have 21 branches across the capital.


About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents.  With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 14 international offices.