As summer comes to an end and the leaves signal that autumn is approaching, we take a moment to reflect on the past quarter, which may prove to be a pivotal period for the prime London property market.
Interest rates, which have dominated property news over the last three months, are now under control. Many major banks are offering highly competitive new products, and the pace at which these are being introduced has become frenetic. At Landstones, we’ve observed some buyers switching products, and even banks, during the transaction process to secure the latest rates.
This improved access to financing has directly led to increased activity in the sales market. Nationwide has reported a 45% increase in new properties entering the market compared to the same time last year, along with a 20% rise in buyer numbers. Landstones’ sales team has been overwhelmed with new transactions across all segments, from large family homes—which remain in short supply in prime West London—to one- and two-bedroom apartments being snapped up by first- and second-time buyers, now empowered by access to these new financial products.
The influx of capital into the lower end of the market will inevitable trickle up through the property chain, benefiting the broader sector.
The general election in July has also played a significant role in shaping the market. With a new Labour government set to introduce its own legislative changes to guide the market will in a direction it sees fit. While the full impact on demand remains to be seen, early signs suggest the stability brought by the new government has positively influenced buyer sentiment.
Landstones’ sales team has remained highly active in the Prime West London family house market, advising on several high-profile transactions for buyers who have been searching for over 12 months. The usual summer lull has not materialized in 2024, with most buyers choosing to stay focused on securing a purchase and taking advantage of favourable interest rates. We expect this momentum to continue well into the autumn market, and even as Christmas approaches, we anticipate activity will remain strong until the last moment.
London continues to attract overseas buyers and investment from across the globe. A surge of buyers from the Far East boosted prices and transaction numbers in Knightsbridge and Mayfair earlier this year. Meanwhile, Middle Eastern buyers remain highly concentrated in Knightsbridge, while American buyers are showing strong interest in family homes in areas like Kensington and Notting Hill, driving up demand for rare white stucco-fronted houses and large lateral apartments.
The Prime West London lettings market has also remained strong, with the Landstones lettings team experiencing several outstanding months. The limited availability of rental properties is driving prices higher, with tenant demand continuing to grow. In September, one key driver of demand has been overseas students returning for their studies, leading to some apartments being oversubscribed by as much as 25-to-1. Central London continues to offer positive opportunities for both homebuyers and investors, reinforcing its reputation as a safe haven during uncertain times.