Top Spring Property Trends for 2024 in London

The London property market is a constantly evolving beast, and with the arrival of spring, new trends are poised to emerge. While the early months of the year often see a lull in activity, spring traditionally sparks a surge in listings and buyer interest. This year promises to be particularly interesting, with a potential influx of properties hitting the market alongside intriguing developments in specific segments like prime central London.

We’ll delve into the key trends expected to shape the London property market this spring, exploring potential increases in available properties, price movements in prime areas, and the growing importance of features like energy efficiency and green spaces.

The UK’s Economic Backdrop

Amid the current economic landscape, the Bank of England has maintained the interest rate at 5.25%, signalling a perceived peak in the rate rise cycle. Notably, forecasts reflect an increasingly positive economic outlook, bolstering expectations for future interest rate adjustments. Projections suggest a decline in rates during the latter half of the year, potentially reaching 4.4% by the close of 2024. Moreover, with inflation anticipated to remain under control and even to decrease to 2.2% by year-end, there’s a growing sense of confidence permeating the housing market.

Potential Increase in Available Properties

Traditionally, many London property sellers hold off listing their homes until spring. This could be due to a desire to showcase the property in better weather or a strategic wait to see how market prices settle in the new year.

However, this spring, the choice for buyers is on the rise, with availability 20% higher than a year ago, according to research by Zoopla, and many agents claiming that offers are being accepted at the initial asking price or even higher in some cases. This influx could potentially create a more competitive environment for buyers, offering a wider range of options but also putting pressure on pricing, particularly for properties that may not stand out from the crowd.

Prime Central Property Market

The picture for prime central London this spring is a mixed bag. While some experts predict muted price growth or even stagnation due to global economic slowdown, others see a potential for a niche window of opportunity. The upcoming general election injects some uncertainty, but historically, central London has shown resilience and even benefited from its safe-haven status during political turmoil.

This could attract international buyers seeking to secure a foothold in London before potential tax changes related to overseas property ownership. However, the overall market is likely to remain cautious, with buyers carefully considering long-term value and prioritising properties with exceptional features or prime locations.

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Property Preferences

The jury’s still out on whether spring 2024 will see a dramatic shift in preferred locations within London. While the “race for space”, spurred by the pandemic, might have eased, areas offering good transport links and amenities within walking distance are likely to see continued appeal. However, the most interesting change might be in property style.

Eco-conscious features are poised to take centre stage in the property market. Energy efficiency is no longer a nicety; it’s a key selling point. Buyers are increasingly seeking properties with features that minimise energy consumption, such as high-performance insulation, energy-efficient appliances and even renewable energy sources like solar panels. The financial benefits are clear – lower utility bills – but the environmental impact is also a major draw for many.

Slower Pace of Activity for Rentals

In the twelve months leading up to February, average rents across the UK surged by 7.4%, according to research by HomeLet. Projections for 2024 indicate that rents will continue to climb, albeit at a slightly moderated pace. According to RICS, persistent demand outstripping supply is likely to increase rents in the coming months.

Additionally, noteworthy changes have occurred in the regulatory landscape. The Chancellor’s decision to abolish the furnished holiday lettings tax regime is anticipated to foster more equitable conditions within the buy-to-let sector. This move is expected to unlock additional full-time tenancy stock, particularly in major urban centres, tourist destinations and coastal communities – with London being perfectly placed to benefit.

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Early indications for the spring property market are increasingly optimistic. These improved market conditions enhance the likelihood of successful sales transactions, although sellers should remain vigilant in presenting their properties attractively and at competitive prices to facilitate movement in 2024. Ready to list your property or find your dream London home? Get in touch with Hudsons Property today.