More positive outlook for the London property market in 2024

Investors or buyers in Singapore who are eyeing property investments in the UK should know that the London property market now presents a landscape of some major indicators.

Halifax reported that house price increases in January were the highest for a year, thanks to mortgage rates continuing to ease. This clearly states that a typical UK home now costs an average £291,029 – up 2.5% since January 2023.

Recent statistics from Nationwide also indicate that the outlook for the UK housing market is looking ‘a little more positive’, with mortgage rates ‘continuing to trend down’. It is reported that the average UK house price increased in January – by 0.7% – in the previous month.

The rate of inflation has continued to fall while employment rates remain buoyant, this indicates a positive economic data leading to greater confidence amongst buyers and investors from Singapore.

Interest rate remains at 5.25% – for fourth consecutive month

The Bank of England kept interest rates at 5.25% in February for the fourth consecutive month, stabilising the property market and prompting speculation that rates could soon start to fall. This constant rate provides assurance to buyers and investors. As the property market stabilises, it reduces uncertainty and creates a conducive environment for investment opportunities.

The stable interest rate offers predictability in mortgage repayments, allowing the investors or buyers to plan for the finances effectively. Secondly, the steady interest rate brings confidence, encouraging investors to buy and explore opportunities in the UK property market with reduced risks. Also, speculations of the potential rate decreasing in the coming times can lead to increased property demand, with the potential to drive up property values and offer lucrative investment returns.

At Benhams, we are seeing the impact of this upturn in economic data, and we are receiving more new instructions moving into the busy spring months.

Affordability for buyers Improving

With lower mortgage rates and improved affordability, we expect a steadier property market this year. As an investor, if you hit the pause button in 2023 until the market stabilised, it’s now time to resume your house buying plans. With lower mortgage rates and increased affordability, the barriers to the real estate market are lowered, making property ownership and investment more accessible than ever.

The steadier property market, which comes with the possibility of falling interest rates, is advantageous for overseas investors who are eyeing investments in locations like London. As demand rises, buyers and investors can capitalise on the favourable conditions to get desirable properties and high-end investments. So, with interest rates likely to fall soon, we expect demand to increase further.

Countdown to the Lombard Square launch

Next weekend marks the much-anticipated Singapore launch of Lombard Square. Located in the Royal Borough of Greenwich, Lombard Square by Berkeley Group is a new addition to Plumstead in Zone 4, offering quick access to central London via the Elizabeth Line. It features a lively residential neighbourhood, comprising one, two and three-bedroom homes centred around a stunning 1.8-acre garden square. Opal House is an exclusive addition to Lombard Square, offering an ideal combination of city living and the tranquillity of nature right at the doorstep.

At Benham and Reeves, we’ve come together to realise the grand ambition of the project. To help you understand this incredible development better, we have an exhibition taking place at the Berkeley Singapore office on March 23–24 (Sat & Sun) from 11 a.m. to 6 p.m.

Click here to know more about the much-awaited Lombard Square development and to register for the upcoming Singapore launch.

A buoyant London rental market

With new developments completing, supply levels are increasing, and rental prices are stabilising, easing pressure on renters and creating a more stable rental market. This means that now, with less volatility in rental income, investors can better forecast the upcoming returns of their investment properties.

According to Zoopla, London’s average rent is now £2,119 for new lets (almost double the UK average of £1220), but growth slowed in the last year and now stands at 6.4%, down from 16.1% a year ago. Though the average rent remains high compared to the UK, overseas investors can still capitalise on this by investing in properties with strong rental potential in 2024. For instance, invest in the luxury developments that will be completed in Q1 of 2024.

And in this aspect, the demand is high for apartments at the 30+ luxury developments completing in 2024, including Bow Green, The Powerhouse, Camden Goods Yards, White City Living and many more. These places are quite attractive to both renters and potential buyers. Investing in properties like these can potentially lead to higher returns and capital appreciation over time.

Exceptional success at The Green Quarter, Southall

The Green Quarter in Southall enjoys phenomenal success, with exceptional tenant demand due to its location close to a Crossrail (Elizabeth Line) station and fantastic amenities. As an investor, you can leverage this connectivity to central London and other key areas that have increased demand for rental properties in the area.

Our onsite branch has seen rents increase by up to 50% since 2021. This is good news for investors looking to enjoy a favourable rental yield at this development. Investing in the Green Quarter will allow you to diversify your investment portfolio geographically, reason being, the high standard of living that is appealing to discerning tenants. Two-bed apartments in the next phase are projected to achieve £2400 per month, compared to £1600 per month for apartments in June 2021. This quite likely offers a steady stream of passive income.

Discover exquisitely built homes in this remarkable development by one of the UK’s top masterplan developers today!

Contact our Singapore office to buy, sell or rent a property in London

If you are buying, selling or renting a property in London, contact our Singapore office and we will help you make the right choice!