London property update – May 2024

Pent-up buyer demand drives growth in housing market activity

Housing market activity is picking up as buyers show increasing confidence in the UK economy and inflationary pressures continue to ease. Pent-up demand from homebuyers is driving much of this increasing activity, as many resume plans that they put on hold last year due to economic uncertainty.

Positive economic factors boosting buyer confidence

Greater confidence amongst buyers is key. Inflation has dropped further – down to 2.3% – its lowest in nearly three years. And the economy is moving out of the recent brief, shallow recession.

With the employment market strengthening and interest rate cuts likely by the summer, pressure on household incomes is easing and affordability issues are improving. However the housing market remains price-sensitive.

UK economy sees fastest growth in nearly three years

The Office for National Statistics (ONS) reports that Britain’s economy saw its fastest growth in nearly three years in the first quarter of 2024, while Gross Domestic Product (GDP) grew by 0.6% in the three months to March, the strongest growth since the fourth quarter of 2021.

More properties coming to the market

As a result of this positive economic news, here at Benham & Reeves we are seeing more sellers putting their homes on the market, increasing choice for buyers and leading to greater movement in the market. This is likely to increase further when interest rates are cut.

So while the housing market may remain challenging, we are much better placed than at this time last year and we expect greater stability in the coming months.

According to Rightmove, the average price of UK property for sale has reached a record £375,131 while the number of sales agreed during the first four months of 2024 is up 17% over last year.

Zoopla reports that there are 20% more properties for sale in the UK than in spring 2023. And the number of sales agreed has increased 9% year-on-year.

And while we wait to see how the General Election on July 4th affects the housing market, many commentators are reporting that they don’t expect a significant impact. Interest rates and economic factors have greater influence.

Our international offices highlight London’s best new developments to overseas clients

Our international offices have a busy programme of property events taking place over the summer, showcasing London’s most exciting new developments.

Hong Kong preview of Wandsworth Mills

Our Hong Kong office is holding an exclusive VIP preview event from May 30th to June 2nd, introducing St George’s exciting new Wandsworth Mills, SW18. It offers a mix of heritage and contemporary design, within beautifully designed landscapes, close to the Thames.

Book your place at: VIP Preview of New Homes for Sale in Wandsworth Mills, London SW18 (benhams.com.hk)

Bangkok team meets investors

Our Bangkok team has been holding one-to-one discussions with clients about investment opportunities at Wandsworth Mills, together with a UK mortgage advisor from Capricorn Financial Consultancy. Their next session is in June so book your place at: New Homes for sale in Wandsworth, London (benhams.com)

Dubai office completes successful launch of Royal Gateway, Acton, West London

Our Middle East (Dubai) team has successfully launched Royal Gateway, Barratt London’s new development in North Acton.

This collection of 300 homes is at the heart of one of Europe’s largest regeneration zones, with £26 billion being invested in the local area.

This is an excellent opportunity for investors to buy into the first phase of this groundbreaking development – in one of London’s greenest boroughs, yet with excellent transport links and new amenities including a new high street and two major campuses for Imperial College.

For more information go to: Exclusive Preview of New Homes for Sale in Acton, London W3 (benhams.com)

India office showcases selection of Barratt London developments

Our India office recently held an event in Pune where they showcased several Barratt London developments. They’ll also be launching Royal Gateway in June: In Mumbai on 22nd and 23rd June and in Delhi on 29th and 30th June.

Find out more at: Royal Gateway North Acton, W3 6TH – New Homes for sale in London (benhams.com)

Malaysia office highlights developments along the Elizabeth Line

Developments near the Elizabeth Line were the focus of a successful event in Kuala Lumpur, held by our Malaysia office in May. Close to one of London’s best transport links and with entry level apartments from £285,000, offering rental yields of up to 6%, these developments offer excellent investment opportunities.

If you missed this, go to: Invest in Prime London Developments Near Elizabeth Line stations (benhams.com.my) for more information.

Rental demand remains strong in London

Demand for rental properties in London remains strong although enquiry levels are down slightly from last year. Rightmove reports that the number of people looking for a rental home in London is 17% lower than last year, but 54% above 2019.

They estimate that around 50,000 rental properties are needed to bring the number of rental properties available back to pre-pandemic levels.

Meanwhile Zoopla reports that the average rent in London is £2,121 per month after 4.2% growth over the last year.

Well presented rental properties letting quickly

Here at Benhams we are receiving around 15 enquiries per rental property. Well presented, accurately priced properties tend to let within a week or two, so voids remain minimal.

All new developments see strong rental demand but Grand Union in Alperton, The Green Quarter in Southall, White City Living in W12, 250 City Road in EC1, Fulham Reach in Hammersmith and One Thames City in Nine Elms stand out in terms of popularity.

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

Contact your nearest Benhams branch if you are buying, selling or renting a London property soon. We have 21 branches across London who will be very happy to assist you.