Property market picking up as we move into the busy Spring season

The UK received further welcome economic news this month, as inflation fell again, dropping to 3.2% in March. Inflation has been slowly falling since late 2022, when it peaked at 11.1%.

This figure was a little higher than some commentators had expected but the Bank of England is still expected to reduce interest rates later this year, possibly by early summer.

Market reactions remain favourable due to this continuing positive economic news and as a result, we are now seeing noticeably more activity in the housing market – with demand growing, enquiry levels picking up and transaction levels increasing.

So we’ve started the year with far greater market stability than we had seen over the last few months of 2023 and we expect this positivity to continue over the course of the year.

Buyer confidence increasing

We’re seeing real signs of greater confidence amongst homebuyers, despite ongoing affordability issues.

Our 21 branches across London are now receiving more enquiries and more requests for viewings, as many homebuyers restart their property searches during the busy spring months when traditionally stock levels improve dramatically.

Read more on: Why Spring is the best time to list your property on the market?

This comes after several months of a more cautious ‘wait and see’ approach, as buyers paused to see the direction in which interest rates and property prices would move.

So, homebuyers are focusing on either taking that first step on the property ladder or moving to a larger home, before the expected reduction in interest rates leads to a further increase in activity and greater competition amongst purchasers.

And although mortgage interest rates remain a challenge, most buyers are determined to make that move, buoyed by the strong employment market and improving wage growth.

Weakness of sterling creates buying opportunities for overseas investors

For property investors, the continuing weakness of sterling against the US dollar and other currencies remains a driving force, as buyers seek to take advantage of the value created by the weak pound.

Positive news on house price growth

According to Halifax, ‘house prices in March 2024 were 0.3% higher than the same month a year earlier.’ They reported that: ‘UK house prices grew in March on a quarterly basis, by +2%, with annual growth slowing to +0.3%, from 1.6% in February.’

Their monthly House Price Index showed that house prices increased by 2% in Q1 of 2024, compared to Q4 of 2023.

And they revealed that the average house price in London was £539,917. In the rest of the UK, the average house price was £288,430 in March.

Our directors undertaking extensive tour of Asia

Our directors Anita Mehra and Marc von Grundherr are currently undertaking an international tour visiting many of our overseas offices, including Taiwan, Hong Kong and Indonesia (our newest overseas office). They’ll be meeting investors and sharing their own in-depth analysis of current London property market trends and investment opportunities.

They hope to meet as many investors as possible so please get in touch to make an appointment.

Check out our directors’ schedule in Asia here

International offices forging ahead with overseas property events

India office hosting Wembley Park Gardens showcases in Mumbai and Delhi

Our India office is about to host property showcases in Mumbai and Delhi, focusing on the latest phase of Wembley Park Gardens, a new development in North-West London, just two tube stops away from Baker Street W1.

The event takes place in New Delhi on April 20th and 21st and in Mumbai on April 27th and 28th.

Book a slot during our showcase to schedule a private appointment with our property specialists in India this April.

Malaysia office showcasing Zone 1 property investments

Our Malaysia office is planning a showcase featuring some of London’s most exciting new Zone 1 developments, with easy access to top universities and excellent transport links. These apartments offer rental yields of up to 5%.

Our team will be joined by a UK mortgage broker from SPF who will discuss buy-to-let loans.

The event takes place in Kuala Lumpur on 27th and 28th April.

Find out more at: Prime Zone 1 London New Developments for Sale: High Returns!

Middle East team visit Lebanon with Berkeley Group

Our Middle East team will be joining forces with Berkeley Group to visit Beirut to introduce some of the top developer’s latest new developments in London.

Prices start from £280,000, offering rental yields of over 6%. This joint event takes place April 29th-30th.

If you are in Beirut and would like to find out more about the excellent investment opportunities in London, do contact our Middle East office today.

Demand for London rental properties continues to outstrip supply

Our London lettings branches continue to see demand for rental properties outstrip supply, with typically over 15 enquiries per property.

Demand is settling down though as the pressures exerted on the rental market after the Covid lockdowns continue to diminish. The number of professionals and international students moving to London has returned to closer to pre-Covid levels and the immediate post-lockdown rush has slowed.

In London, supply levels are improving, as new developments launch across the city. With supply levels improving, rental inflation is slowing.

According to Zoopla, rents in London are now increasing at a rate of 5.1%, compared to 15.3% a year ago.

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

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