From Spring this year, London’s luxury property market is experiencing its most robust growth since September 2022. After a recent period of declining quarterly prices, the market has rebounded with a 0.1% increase, bringing much-needed stability to mortgage costs and rekindling buyer interest.
This resurgence is being hailed as a significant and positive shift, positioning the capital at the forefront of home buyer interest in the UK property market, according to Zoopla. Prospective buyers are actively engaging with London estate agents to explore available properties, signaling an optimistic trend.
Lucian Cook, Head of Residential Research at Savills, commented, "The housing market outlook has notably improved, driven partly by a quicker-than-expected recovery in the mortgage market. Anticipation of the first interest rate cut and diminishing recessionary risks have restored stability to mortgage costs, which has particularly benefited domestic prime markets. These include affluent areas like outer prime South and West London, as well as the commuter belt."
Across the UK, quarterly price growth heading into spring varied, with suburban regions seeing a slight decline of 0.1%, while urban areas such as Edinburgh, Oxford, and Bath recorded a modest increase of 0.6%. The latest RICS Residential Market Survey corroborates these trends, highlighting increased buyer demand and sales since January, marking the most significant rebound in over eighteen months.
The upturn in London's luxury housing market bodes well for the capital, driving investment and fostering economic growth. Luxury developments continue to enhance the city's dynamic landscape, fueling sustained demand for prime real estate. Despite market fluctuations, London's luxury segment remains reliable and stable, promising long-term security and attractiveness for investors. Looking ahead, investments in London present secure, viable, and compelling opportunities for growth and prosperity.
Sources: City AM, The Observer, Bloomberg
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