{"id":22370,"date":"2023-10-31T09:18:11","date_gmt":"2023-10-31T09:18:11","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=22370"},"modified":"2024-07-22T09:00:50","modified_gmt":"2024-07-22T08:00:50","slug":"cautious-optimism-homebuyers-mortgage-interest-rates-stabilize","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/london-property-market\/cautious-optimism-homebuyers-mortgage-interest-rates-stabilize\/","title":{"rendered":"Cautious optimism for homebuyers as mortgage interest rates stabilise"},"content":{"rendered":"

There\u2019s cautious optimism for UK homebuyers, with mortgage interest rates stabilising<\/a> and lenders now reducing rates on fixed mortgage deals. So, anyone moving home or remortgaging should soon be under less pressure.<\/p>\n

It comes after the rate of inflation remained at 6.7% in September, according to the ONS (Office for National Statistics) due to food prices easing.<\/p>\n

London house prices softening<\/h2>\n

The ONS also reported that London house prices fell 1.4% in the year to August, yet the average sold price of a property in London was \u00a3536,000, remaining the most expensive area in the UK to buy a property<\/a>.<\/p>\n

Nationwide\u2019s House Price Index showed London house prices declined by 3.8% year-on-year to \u00a3514,325 in Q3 of 2023. However, this is an improvement on Q2 when house prices fell by 4.3%.<\/p>\n

So, London\u2019s housing market appears to be holding up.<\/p>\n

\"homebuyers<\/p>\n

Demand for well-priced properties<\/h2>\n

Our records confirm the market\u2019s resilience. With interest rates steadier, buyers are feeling more confident and actively continuing their property search, with well-priced properties attracting enquiries. Pricing is key as most buyers want to stick to their budget in case of further interest rate rises.<\/p>\n

Enquiries growing from international investors<\/h2>\n

Demand is growing from overseas cash buyers investing in London – a \u2018safe haven\u2019 whose economic stability and respected legal and financial frameworks offer security against a backdrop of global unrest.<\/p>\n

These wealthy cash buyers are underpinning demand in many areas, as interest rates don\u2019t affect purchasing decisions – favourable exchange rates are far more important.<\/p>\n

\"homebuyers<\/p>\n

Prime London property market seeing increase in enquiries<\/h2>\n

The Prime Central London property market<\/a> is seeing an increase in market activity, with demand strengthening after a slowdown in Q3. We monitor demand for London\u2019s most expensive properties based on market activity – the proportion of homes listed for sale across the prime market that have already been sold subject to contract.<\/p>\n

Hotspots include Clapham, where 47.5% of homes listed for sale between \u00a32m and \u00a310m are already sold subject to contract. Chiswick (41.8%) and Highgate (38.6%) are also seeing high demand from high-end buyers. Clapham has seen levels increase by 9% since Q2 of 2023.<\/p>\n

Traditional prime areas have also seen notable increases. Fitzrovia has seen the largest increase year-on-year (5.3%), followed by Putney (3.9%), Regent\u2019s Park (2.3%) and Islington (2.3%).<\/p>\n

Read our latest research on London property prices here<\/a>.<\/p>\n

\"Sterling
Sterling Place by Barratt London<\/figcaption><\/figure>\n

New developments attracting overseas interest<\/h2>\n

Our overseas offices have been launching new developments, attracting strong interest from clients.<\/p>\n

Waterhouse Gardens in Manchester<\/a> has attracted many enquiries from clients through our Hong Kong office while Singapore investors are already reserving apartments in Primrose House, the first phase of Camden Goods Yard<\/a> in London NW1.<\/p>\n

In South London, One Clapham Junction<\/a> was well received at our Malaysia office\u2019s launch event, while Sterling Place<\/a> in South-West London has enjoyed success in our first global launch as part of our strategic partnership with Barratt London.<\/p>\n

London lettings market remains super busy<\/h2>\n

The ongoing shortage of properties to rent in London is underpinning high demand \u2013 and rising rents. The ONS showed that rents in London increased by 6.2% in the year to September \u2013 a record increase – up from 5.9% in August.<\/p>\n

Rightmove reports that the average number of enquiries per rental property in the UK stands at 25 \u2013 up from eight just four years ago.<\/p>\n

\"Homebuyers
Southall Branch at The Green Quarter<\/a><\/figcaption><\/figure>\n

Our new lettings branch opens at The Green Quarter<\/h2>\n

To meet soaring demand in London, we are continuing our programme of new branch openings.<\/p>\n

This month we opened our latest branch – at The Green Quarter by Berkeley Group \u2013 in West London. We are the only letting agent with a branch on-site and our team has been overwhelmed by the response from tenants and landlords<\/a>. We have many new instructions and apartments are flying out as soon as they become available.<\/p>\n

New apartments completing across London<\/h2>\n

In West London, our Hammersmith branch is busy with the latest phase at Chelsea Creek, SW6<\/a> where one bed apartments are letting for \u00a3675 per week and two beds for \u00a3800-\u00a3875 per week.<\/p>\n

At nearby Kings Road Park<\/a>, we\u2019ve let several two bed flats for \u00a3900-\u00a3970 per week, while at Fulham Reach<\/a> apartments are letting quickly – \u00a3675-\u00a3725 per week for a one-bed and \u00a3900-\u00a3950 per week for a two bed.<\/p>\n

In the City and East London, demand is slowing a little now that students are settled and the university term has begun. But this is being replaced by robust demand from professionals moving back to the city now that they work in the office more regularly. Popular developments include London Dock<\/a>, One Blackfriars<\/a> and Lincoln Square<\/a>. Our Canary Wharf<\/a> is reporting that well-priced stock is letting immediately.<\/p>\n