As we go into spring this year, London’s luxury property market has had its best period of growth since September 2022. Quarterly prices had been falling of late, but as of now a 0.1% increase has seen increased stability in terms of mortgage costs, something that is bringing more-and-more buyers back to the market.
In what’s been heralded as a comprehensive and positive shift, the capital is leading the way in home buyer interest in the UK’s property market according to the website Zoopla. The uptick in demand is defined by potential buyers contacting London estate agents to investigate the kinds of properties available, suggesting a positive change overall.
The head of residential research at Savills, Lucian Cook, said, ‘The outlook for the housing market has certainly improved, partly because the mortgage market has recovered more quickly than expected. With the first cut rapidly coming into view and recessionary risks easing, greater stability has returned to the cost of mortgage debt, which has positively impacted domestic prime markets, where many buyers rely on borrowing, most notably in leafy outer prime South and West London, as well as the commuter belt.’
Across the UK, prices saw much less quarterly growth heading into spring, although traditionally this time of year brings more buyer activity. However, suburban regions experienced a downturn of only 0.1%, whilst urban areas like, for instance, Edinburgh, Oxford and Bath, saw an increase of 0.6%. Meanwhile, the latest RICS Residential Market Survey also supports the existing data that the housing market is improving. They show that buyer demand and sales have all increased since January of this year, the most significant rebound in at least eighteen months.
The increased activity in London’s luxury housing market is only good news for the capital as a whole, driving investment and stimulating economic growth. Luxury developments have long been proven to add to the vibrancy of the city’s landscape, and, as such, the demand for prime real estate continues to grow. And despite fluctuations, the luxury London market is reliable, stable and expected to stay that way over the long term. This means, going forwards, investments in the city remain a secure, viable and exciting prospect.
Sources: City AM, The Observer, Bloomberg
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