International investors driving demand for London property

There’s good news for the UK economy as inflation fell to 7.9% in June, down from 8.7% the previous month. The Bank of England has increased interest rates 13 times since December 2021, aiming to slow soaring prices, but with inflation at its lowest in over a year, it is under less pressure to further increase rates. This is clearly positive, particularly for anyone moving home or renewing their mortgage deal.

The housing market is slowing, but this follows frenzied buying activity after the pandemic and the Stamp Duty holiday. House prices may have dropped from their peak, but demand remains good while high employment means few forced sellers, so stock levels are steady and we’re not seeing dramatic price fluctuations.

However, there is a gap between what sellers want to achieve and what buyers can afford to pay, with Zoopla reporting that two fifths of sellers are agreeing price reductions of over 5%, as budgets are squeezed due to rising interest rates and the soaring cost-of-living.

Cash buyers taking advantage of good discounts from developers

There are deals to be had in this market, with pockets of strong demand, particularly from cash buyers taking advantage of the weak pound and discounts from developers.

Many of our clients are interested in properties in areas overlooking the river, such as Hammersmith and Kew. Battersea and Nine Elms are also seeing good demand and we have a waiting list of buyers for apartments at Battersea Power Station.

Prime London market sees increasing interest

The prime London market is returning to form, with interest increasing from wealthy buyers. Our latest Prime London Buyer Demand Index shows buyer demand increasing 2.5% across the prime market during the latest quarter, with the super prime market rising 1.9%.

Areas of outer prime London such as Wimbledon and Richmond are perennially sought-after, but we’re now seeing demand growing in newer core prime London hotspots, including Islington, Wapping, Canary Wharf and Pimlico.

Benham and Reeves India launches partnership with Barratt London

Our India office is proud to have formed an exclusive new partnership with Barratt London. This will see Benham & Reeves India selling one of the largest London property portfolios to Indian investors, providing full support to help investors maximise their return on investment.

The first event was held in New Delhi for the launch of Wembley Park Gardens in North-West London – this was extremely successful and we took multiple reservations. We also have launches planned in Mumbai and Delhi soon so register now to book your place.

Find out about our partnership with Barratt London here.

Overseas offices doing brisk business

Our overseas offices are busy working with international buyers, encouraged by the weak pound which is offering them excellent value.

Hong Kong and Thailand teams visit London

Our Hong Kong team has been visiting London with staff from our new Thailand office, arranging personalised property tours for clients.

They have been touring some exciting new projects and have just launched Poplar Riverside, a major riverside regeneration project from Berkeley Group, known for its expertise in urban regeneration. Located on the banks of the River Lea, Poplar Riverside will offer 2,800 homes, a 2.5 acre park and fantastic amenities, just a seven minute drive from Canary Wharf. Rental yields are expected to be up to 5.9%.

New developments launching for overseas investors

Our Malaysia office successfully launched One Clapham Junction in SW11 this month, receiving a tremendous response from investors.

Our next launch is Sailors Wharf at Royal Arsenal Riverside in SE18, another riverside regeneration project from Berkeley. This is being launched in Hong Kong on August 19th and 20th. Go to Sailors Wharf, Woolwich, SE18 (benhams.com.hk) to register your interest.

London rental market continues to see sky-high demand

Demand for London rental properties remains sky-high and over the summer we see a further influx of renters – professionals, new graduates starting their first jobs and international students starting university courses in September/October.

London remains one of the world’s most attractive cities to live, work and study in. In such a frantic rental market, competition for properties is fierce and it’s not unusual to see over 20 applicants per property.

London rents rise by 5.3%

Across the UK, rents increased 5.1%, according to the Office for National Statistics (ONS) while in London, rents rose by 5.3%.

Rightmove’s latest stats show that rents outside London reached an average £1231 per month while London rents reached an average record £2567 per month. London asking rents have increased by £559 (28%) in the last four years.

Contact our sales and lettings teams across London

We have fully referenced tenants waiting to move into rental properties across London so please get in touch if you have a vacant property to let.

And if you are planning to buy or sell a London property, please contact your local Benhams branch for more on how we can help.