Economic data points to more positive outlook for the UK property market

February has seen leading mortgage lenders report statistics pointing to a more positive outlook for the UK property market in 2024.

Halifax reported that house price increases in January were the highest for a year, thanks to mortgage rates continuing to ease. They stated that a typical UK home now costs an average £291,029 – up 2.5% since January 2023.

Recent statistics from Nationwide also indicated that the outlook for the UK housing market is looking ‘a little more positive’, with mortgage rates ‘continuing to trend down’. They reported that the average UK house price increased in January – by 0.7% – on the previous month.

The rate of inflation has continued to fall while employment rates remain buoyant – positive economic data leading to greater confidence amongst buyers.

Interest rate remains at 5.25% – for fourth consecutive month

The Bank of England kept interest rates at 5.25% in February, for the fourth consecutive month, stabilising the property market and prompting speculation that rates could soon start to fall.

At Benhams we are seeing the impact of this upturn in economic data, and we are receiving more new instructions moving into the busy spring months.

Affordability for buyers improving

With lower mortgage rates and improved affordability, we expect a steadier property market this year. Many buyers hit the pause button in 2023 until the market stabilised, but now wish to resume their housebuying plans. So with interest rates likely to fall soon, we expect demand to increase further.

This is particularly relevant in London, whose higher property prices mean mortgage rates have greater impact on affordability and buyers are extremely price-sensitive.

Post-Budget webinar with Richard Donnell from Zoopla

The UK Chancellor will be delivering his Spring Budget on 6th March. On 7th March, our director Marc von Grundherr will be joined in a live webinar by Richard Donnell, executive director at Zoopla, discussing key announcements and analysing their impact on the UK property sector.

Reserve your slot for our upcoming webinar here.

New Benhams office opens in Indonesia

We have a strong client base in Indonesia and to offer a truly local, comprehensive property service to our Indonesian clients, we have opened a new office in Jakarta.

To reach out to our London property specialists based in Indonesia, do schedule an appointment with our Jakarta office today.

London property launch events in Delhi and Mumbai

In March, as part of our strategic partnership with Barratt London, we are holding major launch events in Mumbai and Delhi. We’ll be showcasing London’s most exciting new developments and offering Indian clients exceptional investment opportunities.

Find out more about our upcoming London property showcases in India this March.

Exceptional turnout at Dubai and Turkey property shows

We’ve just held an extremely successful launch event in Dubai, again with Barratt London. And we also took part in one of the largest London property events in Istanbul, Turkey, hosted by leading UK developer, Berkeley Group.

Both events allowed buyers to examine the investment potential of new properties coming to the market and analyse how they might fit into their portfolios.

If you missed these events, please contact us at EMAIL to discuss our latest investment opportunities in London.

Bow Green launches in Hong Kong

Other recent launches include Bow Green in E3 (Zone 2), a vibrant new community being developed by Berkeley Group, and launched by our Hong Kong office between February 27th and March 3rd. With up to 1450 homes and five acres of landscaped gardens, Bow Green is a 9 minute cycle ride from Canary Wharf.

Discover more information about this exciting new development in East London here.

The Powerhouse at Chelsea Waterfront launches in Singapore in March

Another anticipated launch is The Powerhouse at Chelsea Waterfront, SW10, which we are launching in Singapore on March 9th and 10th. At the heart of the Royal Borough of Kensington and Chelsea, this spectacular riverside development will attract high levels of interest.

Click here for further information of the highly anticipated Chelsea Waterfront development and to register for the upcoming launch in Singapore.

A buoyant London rental market

With new developments completing, supply levels are increasing and rental prices are stabilising, easing pressure on renters and creating a more stable rental market.

According to Zoopla, London’s average rent is now £2,119 for new lets (almost double the UK average of £1220) but growth slowed in the last year and now stands at 6.4%, down from 16.1% a year ago.

Demand is high for apartments at the 30+ luxury developments completing in Q1 of 2024, including White City Living W12, Marylebone Square W1 and King’s Road Park Fulham SW6, One Thames City Nine Elms SW8, Cadence in King’s Cross N1, The Arc in Shoreditch EC1 and The Laundry in London Fields E8.

Exceptional success at The Green Quarter, Southall

The Green Quarter in Southall enjoys phenomenal success, with exceptional tenant demand due to its location close to a Crossrail (Elizabeth Line) station and fantastic amenities.

Our onsite branch has seen rents increase by up to 50% since 2021. Two bed apartments in the next phase are projected to achieve £2400 per month, compared to £1600 per month for apartments in June 2021.

Discover exquisitely built homes in this remarkable development by one of UK’s top masterplan developers today!

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

If you are buying, selling or renting a property in London, contact your nearest Benham & Reeves branch. We have 21 branches across the capital.