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Home News Property market updates, Sales market update Increasing confidence amongst London property buyers

Increasing confidence amongst London property buyers

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The London housing market is really stepping up a gear as we enter the busy summer months. Buyers are showing increasing confidence now that mortgage rates have stabilised and gloomy economic forecasts have thankfully failed to materialise. So the outlook is positive.

Shortages of good stock remain an issue so well-presented properties in sought-after locations are selling well. We find that the right property, at the right price, will always find a strong market.

With confidence increasing, house prices are performing well. In fact Rightmove has reported that London property prices saw a month on month increase of 2.8%, bringing the current average asking price of a London property to £696,500.

Thankfully we don’t expect to see the return of the frenzied post-pandemic property buying activity, but instead a steadier, more sustainable and stable property market.

Current trends amongst London property buyers

We’re seeing some key trends emerging, with international clients and first-time buyers leading the way. As professionals return to their offices, transport links are a key requirement, as too are on-site amenities and of course, outside space.

Outside space remains highly sought-after

In fact, outside space is now high on many homebuyers’ wish lists. And it’s one lasting aspect of the pandemic lockdowns that we don’t expect to diminish. So garden flats are in especially high demand, particularly in areas such as Hampstead and Highgate, already known for their beautiful green parkland. Garden flats in these areas tend to be snapped up immediately, usually receiving multiple offers.

An increase in the number of first-time buyers

The soaring cost of renting is prompting many existing renters to buy their first home. Despite interest rate rises and cost-of-living issues, first-time buyers are carrying out more property viewings. Budgets may have decreased but they are still keen to take that first step onto the property ladder, even if that means buying a smaller property due to the increased cost of borrowing.

New figures from Zoopla show that buyers need an additional £12,000 of income in order to buy their own property, with the average household income needed to buy a two bed property now at £97,000 – up from £91,000 in 2020.

Another key trend is the growing number of international buyers carrying out viewings as they plan to expand their London property portfolios.

International buyers ‘property shopping’ across London

Demand from our international clients is forging ahead, with many visiting London in the spring and summer months to go ‘property shopping’. This year we’re seeing increasing numbers, similar to pre-pandemic levels. Our 10 international offices are hosting successful property exhibitions in their own countries almost weekly.

We’re currently curating personalised property tours for many overseas clients, organising viewings of some of the most outstanding new London homes. Our international teams will be accompanying clients on their property tours, making their trip that much easier. Our teams know London well and can talk to their clients in their own language, simplifying communication.

Which London developments are most popular?

Recently, we’ve sold a number of properties in sought-after developments across London, from Colindale Gardens in North West London to Kidbrooke Village in the East.

Some of the most successful launches include One Clapham Junction, launched by our Malaysia office. In Zone 2, close to the Thames and only minutes from Chelsea, Fulham and Battersea, rental yields of up to 5.2% are possible at this brand-new development.

Our Singapore office recently launched Chelsea Waterfront, luxury apartments in an enviable riverside location in the Royal Borough of Kensington and Chelsea. And the latest phase at White City Living is also receiving a lot of interest from buyers in South East Asia.

Aspen in Canary Wharf is attracting continued interest while Poplar Riverside, on the banks of the River Lea, less than two miles from Canary Wharf, is another new option for investors that looks set to become a popular choice for renters.

Rental demand remains extremely high

New homes across London are vital for London’s renters as the rental market remains very strong and stock levels generally are not sufficient to meet demand. Some tenants are waiting for weeks, in some cases until September, before they can move into their chosen property. These supply shortages mean that in some cases we are seeing a 15-20% increase on last year’s rents.

New schemes are launching, including White City Living W12, Chelsea Creek SW10 and Clarendon N8, but these are only making a small difference to supply levels.

So if you are completing on a new-build property in London soon, please get in touch as we already have fully referenced tenants waiting to move into apartments as soon as possible.

Contact us for more information

If you are buying, selling or letting a property in London, please contact us to see how we can help.

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About the Author

For 40 years Anita has been the driving force behind Benham and Reeves’ success as it has grown from a single branch in Hampstead, to one of central London’s oldest, independently owned sales, letting and property management companies. Anita's vision has driven the expansion of the business to offer a complete range of property investment related services from under one roof, from purchase to handover, furnishings and/or refurbishment to lettings and property management. Read more about Anita Mehra here - Read full profile

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