Thoughts from our Property Experts

“In January we so often prepare for a sunnier Spring London property market. It can feel like a ‘grey’ month in every sense, whereby one pauses for a reset. In fact, we are seeing the market momentum felt in Q4, 2024 continuing apace today. A good number of serious buyers are moving forwards with home viewings, offers and sales agreed. Even the sun has shone this week and brightened our client viewings of Notting Hill houses, South Kensington apartments and Holland Park homes,” notes Laurence Lai, YOUhome C.O.O.

 

Looking back at 2024 market activity, estate agents in London saw the market slow in November after a record-breaking October. With London’s heated political turmoil currently unsteadying both our economy and the city financial sector, this is impacting the property too for the moment. 

 

Lonres notes that last year prime central London, including neighbourhoods such as Mayfair and Chelsea, underperformed the rest of the wider prime market. Values are around 17% lower compared to the previous peak in 2014/15. Other prime and fringe catchments including Notting Hill and Fulham, are only around 2% lower on the same basis. This is positive news for home sellers in Notting Hill, where YOUhome is experiencing an uplift in interest and discussions this month.

 

Without doubt, international home buyers are under the spotlight for 2025. 

America, the Middle East, China and Hong Kong are leading buyer interest in London property. With YOUhome website traffic from these regions seeing an uptick and buyer registrations more active too, the weakness of British currency will be a key motivation for overseas buyers this year.

 

Donald Trump will be in office from next week, and the surge in the strength of the American dollar makes London homes look ever more attractive as an investment. HNWI USA home buyers are expected to increase in the coming months.

 

Current predictions that the Bank of England will cut rates several times during 2025 maybe inaccurate given the Chancellor’s current woes, but whatever the outcome, the property market will feel volatile and cash buyers will continue to be king for luxury home sellers.

 

Across London, lower house price growth has limited many people’s willingness and ability to move.  

 

We sincerely hope 2025 will be a year of price resurgence for the London property market following recent years of price lags. London itself is back in the top slot as the world’s most popular city according to several media friendly polls. This should help underpin greater international buyer confidence.

 

Rightmove has indicated 2025 “could be the beginning of the price turning point for the London market with the fundamental pull of the Capital for both workers and international buyers predicted to start to reassert itself, helped by some major companies heading back to the office five days a week.”

 

These are interesting indicators – and with several major American companies invested in London commercial real estate including Google’s KGX1, Meta and Apple Inc. - YOUhome expects to see an uplift in interest from professionals working in the city this year. 

 

YOUhome was most active in the prime segment of the London property market last year. With an extensive choice of homes on the market in our key areas including Notting Hill, Holland Park, Chelsea, Kensington and South Kensington the market for homes priced between £3.5 million and £5 million appears slow. Given buyers continue to expect their purchase to be an appreciating asset over time, sound advice and deep knowledge prevails when purchasing in this price range. Homes valued under £1.5 million are creating the most momentum at present.

The pending changes to Non-Dom status for International buyers is impacting this sector of the market.

 

Having secured an exceptional super-prime residence for clients in Holland Park towards the end of 2024, YOUhome was one of small number of London property brands to record transactions at this level of the market. Indeed, less than 10 sales were registered above £10 million value in Holland Park, W14, likewise for Notting Hill, W8.

 

How will 2025 perform? Discussions are already in progress for client searches, and we will tread cautiously at this early point in 2025. 

 

In summary, 2025 looks set to be a year of navigating a volatile economic and political landscape. London will not lose its global status as a top destination for business and lifestyle. The desirability of London property may fluctuate but the underlying shoots of growth are there. International buyers are investing in London homes for sale, albeit with a more considered approach.