House prices rise the fastest in two years as buyers look to beat the SDLT deadline

Latest data from the Office of National Statistics (ONS) revealed that average house prices in the UK rose by 4.6% YoY in December 2024, marking its fastest increase since January 2023. Encouraged by consecutive rate cuts, the latest of which came last month when the Bank of England (BoE) cut the base rate to 4.5%, buyer activity has also increased.

Rushing to beat the stamp duty deadline

According to Rightmove’s latest report, over 550,000 homes have been sold in the country and are awaiting legal completion. This is 25% more than the awaited home sale completions last year. Mostly held up by volume pressures due to a fast-approaching end (31st March) to relaxed stamp duty thresholds, buyers are likely to experience a conveyancing log jam. The buyer group most affected by the SDLT changes will be first-time buyers between £500,001 and £625,000, who risk a surcharge of up to £11,250 for missing the deadline.

Growth in prices and activity predicts market positivity

Rightmove also reported a 0.5% (+£1,805) monthly increase in the national average selling price of properties coming to the market in February. However, London’s property market seemed to have a happier Valentine’s Month and recorded a 2.3% (+£15,844) MoM increase in average prices.

Price growth hasn’t dimmed demand for homes as buyer and seller activity increased by 8% and 13%, respectively. Furthermore, the agreed-upon sales volume is also 15% more than last year, with Rightmove recording a 49% increase in Mortgage in Principle applications. However, with inflation levels at 3%, buyers are expected to tread more cautiously.

London’s new housing cycle to lead from the front

While the market forecast by Hamptons predicts a 3% increase in house prices across Britain in 2025, prices in London are expected to grow by 4%. It will be the first time in a decade that prices in the capital outperform the rest of the nation. Predicting a buyer’s rush driven by SDLT changes in the first half of the year and sustained cuts to interest rates, expert economists have pegged 2025 to be a ‘buyer’s market’ for house seekers.

Focus on South Quay Plaza in Indonesia and Thailand

Our offices in Jakarta and Bangkok concluded an exclusive showcase of the iconic South Quay Plaza in Canary Wharf across February. Our teams also showcased many other Berkeley schemes, and the developer joined them to help investors understand the potential of investing in London’s top property developments across sought-after residential postcodes.

UAE and London property showcases in Malaysia

Our team in Kuala Lumpur recently wrapped up a successful London property showcase featuring exciting new developments along the Jubilee Line with quick connectivity to London Bridge, Waterloo and the City. Located across exciting areas in Zone 1 and 2, these schemes included The Edit in Southbank, Bermondsey Place and TwelveTrees Park in West Ham.

Next, in March, our Malaysia team will showcase a collection of top new developments in the UAE. In addition to proposing brand-new properties in Dubai, Abu Dhabi, and Ras Al-Khaimah, the event will also feature valuable insights the mortgage advisor is not UAE-based, it can just be: UAE property mortgage advisor. For those looking to expand their business in the UAE, the expertise and advice of a licensed company setup provider is also available.

UAE property exhibition in London

We urge overseas property investors in London to join us for our inaugural UAE property roadshow on 21-22 March. The event will be held at our White City branch and will feature personalised consultations from our UAE property specialists, premium developments by reputable Emirati developers, and expert advice on securing a 10-year Golden Visa. Investors who attend will also get early access to the best units available exclusively for our clients and additional incentives for every purchase.

Directors gear up for Dubai and Asia trip

Our Directors Anita Mehra, and Marc Von Grundherr, will travel to Dubai, Hong Kong, and Bangkok in March to meet with clients. From the latest updates in the property market to private 1:1 consultations, providing lettings & management advice, our directors will touch upon various topics and share details about some of the most promising property deals with investors.

Rent inflation is highest in London

In its latest rental market update, the ONS reported an 11% increase in average rents across London. This is the highest recorded rental inflation across the nation in the 12 months to January 2025. This figure exceeds the 8.7% increase in average rents recorded across the UK. Within London, the Royal Borough of Kensington and Chelsea had the highest average asking rent of £3,615.

Supply continues to improve as Renter’s Rights Bill shows little to no impact

While the number of available rental properties is still 13% higher than last year, Rightmove’s quarterly rental tracker has reported that there is still an average of 10 applications per rental property. This double-digit average suggests there is still high demand from renters looking for good-quality accommodation.

The number of prospective tenants looking to move is also 16% lower than last year, showing better rental stability. Rightmove also reported that the number of new properties entering the rental market is stable compared to the previous year. These reports suggest that the rental market is largely unaffected by the Renters’ Rights Bill, which will soon become law.

As one of London’s oldest and most reputed lettings and estate agencies, we bring you the latest updates and insights about London’s thriving rental market. We also help landlords maximise their rental yield by furnishing and styling properties to suit the needs of high-calibre tenants. Read our latest furnishing blog to find out how we collaborated with our furnishing partner, InStyle Direct, to help a landlord in Westminster earn more than double the previous rent.

Our latest area feature focuses on the vibrant neighbourhood of Nine Elms and how it has transformed into a hub of residential activity – buoyed by its proximity to central London and top universities, abundant green spaces, pulsating city life, and exciting new developments.

With 21 local branches and 14 overseas offices, we have been at the forefront of bringing the best London opportunities to investors around the world. Contact us today to find your next property investment.