UK property searches hit a 12-month high as price growth slows

As autumn approaches, the UK property market is starting to look a little different. More people are searching for homes, but prices are no longer rising as quickly, while the number of properties available has reached its highest level in 12 years.

For Singapore-based buyers and investors considering London property, this creates a market worth watching. Greater choice and more competitive pricing could give buyers more room to negotiate, although higher mortgage rates mean the cost of borrowing remains an important consideration.

More homes, more choice for buyers

Zoopla recorded a 7% year-on-year increase in home searches in August, the highest level seen over the past 12 months, despite UK house price growth slowing to 0.9% (down from 1.3% the previous month).

Supply also improved, with the number of homes available for sale rising by 5% year-on-year to reach a 12-year high. For buyers, this means more properties to compare and potentially greater scope to negotiate with sellers who are competing for attention.

Average UK house prices stood at around £364,999, while London commanded a premium at £646,541.

For Singapore investors, London’s higher entry point needs to be viewed alongside the city’s deeper rental market, international tenant base and long-term demand drivers rather than simply comparing headline prices with other UK regions.

London sellers face greater pressure

The rise in available properties has also increased choice across the market. Rightmove reported a 2% monthly fall in average asking prices across the UK in August, while London saw a 3.1% annual adjustment.

Rather than signaling market weakness, this reflects a buyer’s market where investors enjoy greater negotiating power than during periods of rapid price growth.

This environment offers key advantages for overseas investors taking a long-term view. A buyer’s market provides better value deals, expanded choice, and the opportunity to carefully evaluate developments, prime locations, and rental prospects without the pressure to rush decisions.

East London continues to show resilience

Not every London borough is moving in the same direction. Tower Hamlets and Newham were among the boroughs showing positive monthly price movement in August, with prices rising by 0.7% and 0.4% respectively. Hillingdon and Hackney also recorded modest growth.

For Singapore buyers, these variations underline why location remains crucial. London is not one single property market, and borough-level performance can reveal opportunities that are easily missed when looking only at city-wide averages.

BoE keeps rates unchanged as inflation climbs

The Bank of England kept its base rate at 3.75% at its July meeting, although inflation has since risen to 2.9%, keeping the outlook for future rate decisions uncertain.

Mortgage costs have also moved upwards. Rightmove reported the average two-year fixed mortgage rate at 5.09% in August, compared with 4.95% previously.

For international buyers financing a UK purchase, this makes the overall cost of acquisition especially important. Those buying with a larger cash component may also find the current market dynamics different from buyers financing their property with a mortgage.

What this means for Singapore buyers

The combination of higher buyer interest, increased supply and slower price growth makes the UK market particularly interesting going into autumn.

For Singapore-based buyers and investors, the opportunity is less about trying to time the market perfectly and more about identifying the right property in the right location. Development quality, rental demand, connectivity, future regeneration and the property’s long-term appeal should all form part of the decision.

With international property events taking place across September, Benham and Reeves continues to connect overseas buyers with London property opportunities and local market expertise.

If you are considering buying, selling or letting a London property from Singapore, speaking to our market specialist can help you understand how current conditions could affect your plans.

Explore London’s upcoming masterplans at the St. James & St. William Collection Showcase

If you are based in Singapore, join us this October as we present the St. James & St. William Collection in partnership with Berkeley Group. The showcase will feature some of London’s most sought-after developments, including White City Living, King’s Road Park, Regents View and Bow Green, offering buyers a look at new homes across some of London’s well-connected neighbourhoods.

Attendees will be able to arrange a private consultation session with the developer and our London property specialists, comparing between these stunning masterplans and explore exclusive deals within each development.

Venue: Berkeley Singapore, Tower 2 Marina Bay Financial Centre, 10 Marina Boulevard 16-04, Singapore 018983

Date: 3 – 4 October (Saturday & Sunday)

Get in touch to book a slot today.