The UK property market is set to pick up pace ahead of a busy Spring season

Inflation in the UK fell further, dropping to 3.2% in March this year and continued its steady drop from when it peaked in late 2022 at 11.1%. This news was welcomed by overseas investors looking to invest in the country’s robust property market.

Although the figure was higher than some experts had predicted, the Bank of England is expected to reduce interest rates later this year, most probably by early summer.

This positive economic news has spurred favourable market reactions in the housing market – with demand growing, enquiry levels picking up and an uptick in the number of transactions.

In a nutshell, 2024 has started off with better market stability than anticipated, and witnessed over the last few months of 2023, and we expect this optimism to continue through the year.

Property buyers are getting more confident

Despite the ongoing affordability issues in London, we are seeing signs of increased confidence among homebuyers as our 21 branches across the UK capital are now receiving more enquiries and viewing requests. The Spring months of March to May are usually the busiest for London properties, as stock levels are known to improve with many developers and sellers getting their homes ready for sale.

This shift in momentum has come after several months of cautious ‘wait and watch’ approach by eager buyers closely monitoring the changes in interest rates and property prices.

Some buyers are already taking the plunge to get on the London property ladder before the expected reduction in interest rates leads to a further increase in market activity, which can lead to more competition.

A weak pound creates buying opportunities for overseas investors

For investors from Singapore and other parts of the world, the continued weakening of the pound sterling against the US dollar and other currencies remains a driving force for overseas buyers to step foot in London.

House price growth on the up

Halifax reported house prices were 0.3% higher in March 2024 compared to the same month last year. They also reported UK house prices grew in March by 2% on a quarterly basis, compared to the annual growth, which slowed to 0.3% from 1.6% in February. Their monthly House Price Index showed that house prices increased by 2% in Q1 of 2024 compared to Q4 of 2023. They also revealed the average house price in London for March, which stood at £539,917, compared to the rest of the UK, where the average house price was £288,430 for the same month.

Rental property demand continues to beat supply

With over 15 enquiries for each available home, our lettings branches across London continue to witness demand for rental properties outstripping supply. However, supply levels are also improving as several new developments are launched across the city this year. The improvement in supply levels has a direct impact on the rate of rental inflation, which is slowing down. According to Zoopla, rents in London are now increasing at a rate of 5.1%, compared to 15.3% a year ago.

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