London property offers rare entry point for investors

Recent Rightmove data shows a modest dip of 1.2% in UK property prices in the month of July. The national average now stands at £373,709, reflecting a natural summer slowdown. London average home prices lowered slightly to £684,689 post a brief climb to over £700,000 in June.

Rather than a negative impact, this market fluctuation is drawing rapid interest from discerning investors who are acting quickly while competition slows down.

Smart buyers making the right moves

Sellers are now competing harder for buyer attention, thanks to the rising supply of homes available on the market, the highest in over a decade. Rightmove further reported a 6% increase in property enquiries year-on-year, indicating solid buyer sentiment despite this being a quiet summer period.

The takeaway from these numbers is clear: smart buyers are stepping in early while others continue to wait.

Attractive mortgage rates

Lowering mortgage rates is fuelling the fire. The average two-year fixed mortgage rate has dropped from 5.34% (2024) to 4.53%, resulting in monthly savings of up to £150. Two additional rate cuts are expected in 2025, making borrowing even more attractive.

20% price growth in the past five years

Despite the current dip, overall, long-term performance stands solid. As per Zoopla, UK homes’ values have increased by 20% since 2020. Eight out of ten homes have gained almost £60,000 in value, indicating the strength and stability of the UK’s housing market.

Successful Singapore property showcases

Benham and Reeves Singapore concluded two successful property showcases in the month of July.

– The first exhibition focused on River Park Tower, an appealing Zone 1 riverside development. Situated in the thriving Nine Elms area, this development is generating solid interest from serious overseas and local buyers.

– Heron Wharf was the second property showcase. The launch of this property in Singapore gained an overwhelming response, especially from savvy investors seeking regeneration-led investment pockets in East London.

These events were successfully held in collaboration with AIA & the Bank of Singapore. Exclusive access was provided to high-net-worth individuals and seasoned investors.

The Broadley showcase in Malaysia & Hong Kong

Benham and Reeves Malaysia and Hong Kong showcased The Broadley, a prestigious boutique development within the Marylebone neighbourhood. Regarded as one of London’s most established addresses, this Zone 1 development offers convenient connectivity with three stations in proximity and easy links to London’s financial districts and renowned universities. The Broadley is an ideal pick for end-users and investors seeking central, connected London living.

Rental market hike

Rents in the United Kingdom have recorded a hike higher than mortgage payments over the past three years. Average rents now stand at £1,283/month — up £221 since 2022. Compared to this, mortgage payments increased by £218 per month. London led this surge, with some areas recording rental growth of up to £400 per month since 2022.

This trend indicates the growing importance of rental yield while calculating total return, especially for cash buyers.

London rental trends from 2015 to 2025

Benham and Reeves’ internal research recently reviewed rental trends across 32 London boroughs from 2015 to 2025. This is what we recorded:

Headline rents marked an increment of 39.2%, from £1,616 to £2,249 a month. Once the figures are adjusted for inflation, the real gain was 0.7%, which equals £15 a month.

While rents have kept up with inflation trends, they have not exceeded it, a clear sign of long-term stability for discerning landlords and realistic growth expectations for new investors.

Your London property partner in Asia

Benham and Reeves continues to offer solid support to international buyers from over 14 international offices, including one in Singapore. Our experts can assist with buying, letting and property management, all backed by over six decades of experience and 21 offices in London.

If you are considering expanding your property portfolio, connect with us today.