Spring fever hits the capital as home movers rush to buy London property
The cherry blossom is out at St Paul’s Cathedral, St James’ Park is aglow with daffodils and tulips are in bloom at Buckingham Palace. There’s a touch of spring fever in the air, and it’s affecting eager home movers who are buying property in the capital.
We always expect to see an increase in activity in the springtime, but we are already handling far more enquiries than at this time last year.
Rightmove recently reported an 8 per increase in buyer demand nationally, and it claims that “London has seen the biggest increase, both overall and for top-of-the-ladder properties, compared to this time last year.”
What’s happening in the London property market?
Rightmove’s House Price Index figures for March showed a 13 per cent increase in sales agreed, when compared to the previous month. At the same time, Halifax reported that house prices across London had risen by 1.5 per cent over the past 12 months.
2023 was a relatively quiet year for property sales, as high interest rates prevented many homebuyers from realising their ambitions.
Now, thanks to softening property prices and a wider choice of mortgage deals, it appears that the capital’s property market is once again picking up speed.
Buying a house in the spring could therefore, be a wise choice if you want to make the most of current market conditions. Read on to discover how you could benefit by making that all-important purchase before the summer begins.
A springtime boost for mortgage products
Moneyfacts reports that at the start of last month, there were 6,000 mortgage products on sale. This means that homebuyers are now able to choose from the widest range of mortgage deals available since 2008.
Many mortgage lenders have extended the range of products they offer, as well as including incentives such as cash-back deals. First time buyers with a relatively small deposit have also benefited by gaining access to a wider selection of mortgage products.
The downside to this expanded choice is the speed with which these products are disappearing from the marketplace. Deals are now available for an average of 15 days, down from 28 days at the beginning of February. However, if you are confident about your finances and prepared to make a fast decision, you could take advantage of the wide selection of mortgage products on offer.
Will we continue to see a buyer’s market?
London house prices have begun to rise again, but there is still a way to go before they return to the peak levels of 2022. The Office for Budget Responsibility (OBR) has predicted that it could take until 2027 before prices fully recover.
Currently, the capital’s homebuyers continue to benefit from a ‘buyer’s market’. This means they can enjoy more leverage and greater choice when buying a home. But if, as predicted, interest rates fall in June, the situation may change.
It is widely believed that the Bank of England will cut the base rate – which affects the cost of mortgages – by 1 per cent this summer. Such a move could result in more activity and greater competition, as buyers previously hindered by high interest rates decide to re-engage with the property market.
Homebuyers looking to negotiate a keen price could, therefore, find that now is a good time to secure their ideal home or investment. As always, our experienced London estate agents are ready to advise on the best locations for your home search.
Where are the best places to buy in London?
Recently we’ve seen a resurgence in the prime central London (PCL) market, with prices buoyed by affluent cash buyers. Last year, despite several years of exceptional instability for this luxury market, PCL sold prices saw a marginal drop of just 0.9 per cent. This year industry experts predict that prices will remain steady.
It is expected that Westminster will buck the PCL’s ‘steady as she goes’ price trend. Rightmove has reported that over the past year asking prices in Westminster went up by 4.7 per cent. Located in the heart of the capital, Westminster remains popular with high profile politicians, media pundits and people who love being at the centre of London life.
Convenient for the city, close to the river and boasting many of the capital’s top attractions, London Bridge is conveniently located for an array of transport options, including rail links extending north and south of the capital. Flat sales make up 87 per cent of the properties sold in this area with the average price of an apartment fell by 3.2 per cent over the past 12 months.
South of the Thames, Kennington offers a more relaxed vibe while also providing a fast commute into central London. Independent shops, street markets, laid-back bars, and welcoming restaurants offer a great alternative to life in the city centre.
Spring into action to secure the best prices
If you want to secure a great deal on a house or apartment in London this spring, don’t hesitate to get in touch. As a family-run business with over thirty years’ experience in buying, selling and letting London property, we’re perfectly placed to help with your search.
