London Property Market Update: July 2024 - Stability and Growth

With a New Government - Will the Sales Progress Slow? The potential impact of a new Labour government on the housing market is a topic of much discussion. Read what Rightmove has to say about it: What could a Labour government mean for the housing market?

Here's our take:

In the last month the London property market has shown signs of stability despite political & economic uncertainties. According to the latest data from the Office for National Statistics (ONS), property prices in London have seen a modest increase of 1.2% year-on-year.[1] This steady rise, although slower compared to previous years, indicates a resilient market despite economic uncertainties.

Sales Volume and Demand

Sales volume has experienced a seasonal uptick. The demand for properties, particularly in suburban areas, continues to grow as buyers seek more space and better value for money. Data from Zoopla highlights a 10% year-on-year increase in demand for properties with gardens and home office spaces. [2]

Factors Influencing the Market:

Interest Rates

The Bank of England’s recent decision to maintain the base interest rate at 5.25% hasn’t had a negative impact on buyer confidence.

Economic Outlook

Despite broader economic challenges, such as inflation and cost-of-living concerns, London’s property market remains buoyant. The capital’s robust job market and the ongoing recovery from the pandemic have contributed to sustained interest in real estate investments.

Popular Areas

South West London Areas such as Richmond, Putney, and Barnes continue to attract significant attention. These neighbourhoods offer a blend of urban convenience and suburban tranquillity, making them highly desirable for families and professionals alike. According to Rightmove, properties in Richmond have seen a 2.5% increase in average asking prices over the last quarter.[3]

First-Time Buyers

First-time buyers are finding opportunities in the current market, with lenders offering competitive mortgage rates. The government's Help to Buy scheme remains a valuable resource, enabling many to take their first step onto the property ladder. According to Halifax, the average age of a first-time buyer in London is now 32. [4]

Market Your Property Effectively

In a competitive market, effective marketing is crucial. Professional photography, virtual tours, and targeted online advertising can significantly enhance your property’s appeal. Rightmove data shows that listings with high-quality images receive 93% more inquiries than those without.[5]

Timing Your Sale

Understanding the best time to sell can maximise your return. Traditionally, the summer months see heightened activity, and this year is no exception. The increased demand, combined with limited supply, creates an optimal environment for sellers to achieve favourable prices.

Expert Insights

Jack Gardiner, Director at James Anderson, notes, "The London property market is demonstrating remarkable resilience. Buyers and investors are adapting to new market conditions, and the demand for quality housing remains strong.”

Conclusion

The property market presents a dynamic and promising landscape for buyers and sellers. The combination of stable prices, increasing demand, and favourable economic conditions positions the property market in a strong position this July.

At James Anderson Estate Agents, we are committed to providing you with the latest insights and expert advice to navigate this evolving market successfully. Stay tuned for our next market update, and don’t hesitate to reach out to our team for personalised guidance and support.

References:

1. Office for National Statistics

2. Zoopla Property Market Report 2024

3. House Prices in Richmond

4. Press Release Halifax: https://www.lloydsbankinggroup.com/assets/pdfs/media/press-releases/2023-press-releases/halifax/2023.09.27-halifax-number-of-first-time-buyers-falls.pdfRightmove.

5. https://hub.rightmove.co.uk/content/uploads/2020/04/FOR-PROPERTY-PROFESSIONALS-Ultimate-Guide-to-Property-Photography.pdf