2024 London Property Outlook

2024 London Property Outlook 2024

Navigating Growth and Resilience in a Dynamic Market

As we sail into 2024, the London property market is showing signs of nuanced growth and stabilisation. In conjunction with our internal reports and data from Knight Frank’s UK House Price Forecasts and the latest Lonres report, we take an overview of what’s on the horizon for London’s property scene.

The Sales Market Sees Modest Growth

The London sales market, which saw a slight dip in prices in 2023, is gearing up for a modest upturn. Knight Frank forecasts a 2% growth in the mainstream market, a sentiment that Beauchamp Estates agrees with. Rosy Khalastchy, Head of Beauchamp Estates’ St John’s Wood Office highlights that the latest data from Lonres indicates a trend towards stabilization and adjustment in the London property market, especially in prime areas like St John’s Wood. Despite economic uncertainties, the enduring interest in high-value properties is expected to continue into 2024. A 7.2% increase in available stock across prime London and modest price adjustments, suggests a market evolving towards greater balance and accessibility.

The Lettings Market: A Strong Super Prime Segment

Beauchamp Estate’s Lettings Manager, Erik Holmgren notes that 2023 was an exceptional year for the super prime lettings market, driven by significant demand for trophy homes and apartments. This trend is set to continue into 2024. However, the broader rental market might see a phase of stabilisation, with a slight dip in rental value growth anticipated in both Prime Central London and Prime Outer London.

Economic Conditions Shaping the Market

The market’s outlook is being shaped by wider economic conditions. “With lower inflation and a gradual reduction in interest rates, we’re optimistic about the property market’s trajectory in 2024,” comments Jeremy Gee, Managing Director at Beauchamp Estates. These sentiments are echoed in Knight Frank’s latest report, which revises its UK house price forecast to a 3% increase, a significant shift from the previously predicted decline.

Long-Term Prospects: Growth on the Horizon

Looking beyond 2024, the market is expected to maintain its upward trajectory. There is a predicted 20.5% cumulative growth in UK house prices over the next five years, indicating sustained growth potential, particularly in prime segments.

Francesca Fox, Lettings Manager in the St John’s Wood Office at Beauchamp Estates, adds “We’ve seen a remarkable interest in prime properties in St John’s Wood. The Lonres data corroborates our observations of a market that is recalibrating itself. Despite external economic factors, our clients continue to seek high-value properties in prime London areas, which is a testament to the enduring appeal of these locations.”

2024, a Year of Opportunities

As we step into 2024, we at Beauchamp Estates see a vibrant market filled with both opportunities and challenges. It’s a landscape where investors and homeowners must remain alert to evolving dynamics. Leveraging insights from industry experts, including ourselves, will be crucial for making informed decisions in this dynamic market.

* Forecast compiled from published stats from sources including Knight Frank and Lonres

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