Positive indicators for the London property market in 2024

There’s no doubt that 2023 was a turbulent year for the property market, so positive house price growth in December has been welcome news. Halifax, the UK’s largest mortgage lender, reported that UK house prices increased for a third consecutive month in December – up by 1.1% in December, following a 0.6% rise in November and a 1.2% increase in October.

And the Bank of England has just released figures showing mortgage approvals for house purchases grew to 50,100 in November, up from 47,900 in October.

The Benham & Reeves Property Market Index Review (our quarterly accumulation of house price data from the top four existing indices), shows that the average UK house price was £306,462 during Q3 of 2023. This is a 0.1% quarterly increase and the second consecutive quarter of positive house price growth in the UK. In London, the current average house price stands at £569,566 in Q3 of 2023, again a 0.1% increase against the previous quarter.

Interest rate maintained for third consecutive month

Interest rates are stabilising (the Bank of England kept interest rates at 5.25% in December, for the third consecutive month), and mortgage rates are easing further – lenders including Halifax and HSBC are cutting rates and fixed-rate deals can now be found for around 4%, levels not seen for some months.

And Rightmove has reported that it saw a record number of homes listed for sale on Boxing Day (December 26th), when over 10,000 new properties came to the market – the largest number of new sellers in one day since 2011. They also saw 17% more enquiries from buyers on Boxing Day than the previous year. The property portal also revealed that demand for properties in London was up 19% in the first two weeks of 2024, compared to 2023.

So with economic data looking more positive, we expect to see increasing confidence amongst buyers over the coming months.

Exciting developments newly launched in London

Several exciting new developments are launching across London right now. These include Camden Goods Yard in Camden Town, NW1, an eight acre Zone 2 development with amenities including a rooftop restaurant, supermarket, swimming pool, cinema room, commercial and work spaces. The first phase, Primrose House, is due to complete in Q2 of 2025.

In Colindale, NW9, Redrow are launching the next phase of Colindale Gardens, with high spec homes on a beautiful plot featuring landscaped gardens, a gym, retail outlets and restaurants. New phase Diascia House offers apartments from £352,500 and is expected to complete in Q2 of 2025.

Hayes Village in West London remains popular with homeowners, investors and renters. It’s a vibrant and affordable area at the heart of a major regeneration project in a canalside location. With extensive amenities, it is only minutes from Hayes and Harlington Elizabeth Line (Crossrail) station. Landlords are enjoying rental yields of up to 5.9% and the next phase is due to complete in Q4 of 2024.

Increased stock levels ease pressure on renters in 2024

We continue to see high demand for rental properties in London, outstripping supply in most areas. Well presented, accurately priced properties tend to let within a week.

But with the rental market now stabilising after the frenetic activity of the post-Covid years, when demand soared as the world returned to normal, we expect to see a more balanced picture in 2024.

The shortage of rental properties has been a key factor in rising rents over the last couple of years, but now we are seeing a number of developments completing this year which will improve stock levels and reduce pressure on London’s renters.

There are as many as 30 new developments or new phases of existing developments completing in Q1 this year and we have on-site letting and property management branches in several of them.

A wide choice of rental homes completing now

New developments range from shiny residential towers in the City to landscaped developments on the fringes of London.

Completing soon are phases at 250 City Road in Islington, EC1, (where we have an on-site branch), Postmark in Farringdon, WC1, Marylebone Square W1 and White City Living (where we have an on-site branch), Aspen in Canary Wharf E14 and One Thames City in Nine Elms SW8. Further out there’s Eastman Village in Harrow HA1, Green Park Village in Reading RG2 and Grand Union in Alperton HA0 where we recently opened a new branch.

So there’s a growing number of options for all budgets and lifestyles. And investment options for landlords looking to tap into London’s thriving rental market.

Find out more about new developments completing soon here.

Contact us if you are buying, selling or letting a property in London

So there’s a lot to look forward to in 2024 for anyone buying, renting or investing in London. Find out how we can help by contacting your nearest Benham & Reeves branch.