Lower mortgage rates and return of sellers boosts activity in the housing market

Although September usually sees an increase in house prices, this year, growth was double the long-term average. According to data published by Rightmove, the average new seller’s asking price rose by 0.8% (+£2,974) in September, recording the biggest spike for the month in the last eight years.

The new Labour government’s appointment in July, followed by an interest rate cut by the Bank of England (BoE in August for the first time in four years, has invigorated the housing market. The number of sales agreed was also 27% higher year on year (YoY) compared to last year’s subdued September sales.

Additionally, with the number of new sellers up by 14% YoY, the average number of available homes for sale per estate agent reached its highest volume in a decade. Also, the average five-year fixed mortgage rate is still 4.67%, lower than the peak of 6.11% in July last year.

These positive market indicators, supported by an increase in housing stock, have led to an early start to the busy Autumn market, as investors and homebuyers eagerly await the upcoming Autumn Budget in October.

Inflation remains unchanged, close to the BoE target

According to data from the Office of National Statistics (ONS), inflation in the UK remained unchanged in August and stayed at 2.2%. This figure is similar to July’s preview reading and hovers above the 2% target set by the BoE. While inflation remained slightly above target, the consumer price index (CPI) rose by 2.2% and stayed below the BoE’s forecast for a rise of almost 2.4%.

Moreover, with the US Fed cutting interest rates by half a percentage point (0.5%) in September, investors in the UK are also optimistic about further rate cuts to boost buyer sentiment in the property market.

Directors wrap up a successful Asia tour

Our directors, Anita Mehra and Marc von Grundherr visited several of our offices across Asia, including Doha, Kuala Lumpur, Bangkok and Singapore, where they met clients and offered exclusive insights into the sought-after London property market. If you are based in those cities and have missed out on meeting with us, you can book an appointment with our local office today.

Solaris shines in Malaysia

Our Malaysia office recently showcased The Solaris, the newest phase of White City Living in Kuala Lumpur on 21-22 September. The event also featured a special seminar by our Finance Director, Vidhur Mehra on UK tax, sharing the best tips to save tax when you buy a home in London.

Homes near top London universities sell in Bangkok

Our Bangkok office, in collaboration with Berkeley Thailand, showcased some premium developments near top university campuses in London. These developments included White City Living, Camden Goods Yard, Kidbrooke Village, and Abbey Barn Park.

The event was a huge success, as we were joined by several UK mortgage brokers and education experts who gave a talk on the educational options in the UK and its capital. Our directors also held personalised one-to-one consultations on the sidelines of the showcase for The Solaris in Bangkok.

UAE and Swiss properties take centre stage in Singapore

From luxury beachfront homes on Yas Island in Abu Dhabi to stunning apartments in Dubai and Ras Al Khaimah, our Singapore office showcased some exciting new developments by Aldar Properties in the UAE.

Furthermore, our Directors held private consultations with clients to help them gain expert insights into London property investment and introduce several exclusive London property deals and opportunities.

If owning a property in one of the best ski resorts in the Swiss Alps is a dream, you should get in touch with our Singapore office. They will soon showcase Andermatt Swiss Alps, a collection of luxurious Alpine homes where there are no restrictions for foreigners to purchase and sell from abroad. Our experts will also guide you on how to maximise income from a fully flexible rental programme designed for short-term rentals.

Exciting new Berkeley developments presented in Hong Kong

Our Hong Kong office recently concluded a showcase of The Solaris at White City Living. The event was a hit as many investors showed interest in this brand-new Zone 2 development in West London.

Riding on the back of Solaris’ success, our Hong Kong team will unveil a collection of prestigious waterside developments by Berkeley’s St George across desirable London postcodes in October. You can register now and book your seat to learn more about these top-tier developments.

Our Indonesia team also recently concluded a showcase of waterside developments by St George across London at the Ritz-Carlton in Jakarta.

Twelve Trees Park launch in Dubai

October is all set to be an exciting month for our Dubai office as our team of property experts in the UAE showcase the latest phase of TwelveTrees Park. This brand-new masterplan development, right next to West Ham Station enjoys access to five transport lines, including three Underground lines, the National Rail and DLR lines.

In addition to quick connectivity to Stratford, Canary Wharf and the City, this mixed-use development will also feature offices, retail space and a science school along with 12-acres of green space. Register now and join us for this exclusive London property showcase in Dubai.

Rental inflation slows as demand continues to exceed supply

Although rental inflation in London at 5.4% has slowed down to its lowest level in three years, the ongoing trend of higher demand for rental properties in the UK capital is still far greater than supply. However, the good news is that the number of homes available for rent is rising and the current stock is 18% more than what it was this time last year.

Rents are expected to rise 3-4% over Q4 2024, with the supply/demand imbalance set to continue into 2025. According to Zoopla, the average rent for new lets in the UK is £1,245, while the same is £2,148 in London.

Lower mortgage rates to help renters

While lower mortgage rates will enable some renters to exit the rental market to buy their first home, tax and policy change will continue to see some landlords exiting the market, keeping supply constrained, resulting in an upward pressure on rents in the coming months. Additionally, the competition for rented homes is still running at twice pre-pandemic levels and we expect demand to remain elevated into 2025 despite a softening labour market.

With 21 branches across the city, we can help you if you are buying, selling or renting a property in London.