The latest analysis of the prime London property market from estate agent Savills celebrates the resilience of prime London prices in the run-up to the general election and predicts a stronger performance in the second half of the year now that “most uncertainty is behind us”. In the Prime Outer London neighbourhoods that London Richmond invests in – including Battersea, Wimbledon and Chiswick – a continued supply-and-demand imbalance for family houses has supported values.
The latest analysis of the prime London property market from estate agent Savills celebrates the resilience of prime London prices in the run-up to the general election and predicts a stronger performance in the second half of the year now that “most uncertainty is behind us”. In the Prime Outer London neighbourhoods that London Richmond invests in – including Battersea, Wimbledon and Chiswick – a continued supply-and-demand imbalance for family houses has supported values.
"With uncertainty easing and a base rate cut expected, Prime Outer London is poised for renewed demand"
The Labour government’s plans to introduce VAT on private school fees could see more demand filtering into these areas as they have some of the best state schools in the country, which may in turn increase the house price premiums that are already evident in these desirable areas. With the expectation of a fairly imminent fall in the Bank of England base rate, Savills predicts renewed demand across Prime Outer London, where buyers are most reliant on mortgage finance.London Richmond maintains its prediction of house price rises in London of 5% in 2024 and 10% in 2025.
November marked the fifth consecutive monthly UK house price rise and the biggest leap so far this year, according to Halifax. The mortgage lender said property values were up 1.3% compared with October.
We expect positive price growth this year – in a climate of falling mortgage rates, improving affordability and the release of some pent-up demand. Rightmove reported that first-time buyer demand in the capital in September 2024 was 28% ahead of 2023, moving up to 31% after the autumn budget.
International property company JLL has said it expects Greater London house prices to increase by 22% over the next 5-years, beating nationwide UK growth predictions of 20% over the same time span. The firm added that within those headline figures, it expected lower value markets to see stronger growth towards the beginning of the period, with more expensive markets like London and the South East outperforming in the second half.