Two London Markets, Two Very Different Stories Right Now
More choice for London buyers than we've seen since 2010, and tenant demand across the capital still climbing. Whichever side of the market you're on, there's good news here. Here's what's really happening in both markets right now.
Look at the London property market from the sales side and the lettings side this month, and you'd be forgiven for thinking they belonged to two different cities. One is giving buyers room to breathe for the first time in years. The other is doing the opposite for tenants. Here's what the latest figures actually show, and what they mean depending on which side of the market you're on.
The Sales Market Is Giving Buyers Room to Breathe
Rightmove's House Price Index for August shows the average asking price for a newly listed London home has fallen to £646,451, down 4.4% on the month and 3.1% on the year. That's a sharper drop than anywhere else in the country. London now has the largest choice of homes for sale since 2010, and it's currently taking an average of 73 days to find a buyer. Nationally, asking prices are down 1% year on year, the steepest annual fall since December 2023, though there was a small silver lining: buyer demand rose 5% following Andy Burnham's appointment as Prime Minister in July, even as mortgage rates edged up to 5.09%.
The Lettings Market Is Moving the Other Way
Rents are telling an almost opposite story. Zoopla's most recent Rental Market Report found that London was the only region in the country to record a rise in tenant demand over the four weeks to 31 May, up 6%, a trend it links partly to higher mortgage rates keeping prospective buyers in rented homes for longer. Rightmove's own Rental Trends Tracker for the second quarter put the average rent across Greater London at a record £2,791 a month, up 2.9% on the year, with inner London rents reaching £3,299. Even so, competition per property has eased considerably from the peak years, giving today's lettings market a calmer, more balanced feel than the scramble of 2022.
What This Means for You
If you're selling in London right now, presentation and pricing matter more than they have in some time, simply because buyers have so much more to choose from. If you're a landlord, demand for rented homes in London remains healthy against a national backdrop that's cooling, which is worth bearing in mind at your next rent review or when you come to relet. Either way, the two markets are moving on different clocks at the moment, and it's worth treating them that way.
As always, these are national and citywide averages. Your street, your building and your property type can tell a very different story, so do get in touch with your local GLP branch for figures specific to you.
Best wishes,
Rob Hill
Founder & Director
Greater London Properties
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