Outlook on the prime central London market this autumn

It goes without saying that the last year of uncertainty amid interest rate hikes has had an instrumental impact on the real estate market. Whilst we expect the interest rate to have finally hit its peak, here is our outlook on the buying market and the shift we’re seeing in prime central London.

In a period that is traditionally one of the busiest times of the year, as we enter the autumn market, we are optimistic that London stock levels will improve, and this will continue for the remainder of 2023 into 2024. Whilst we expect house prices to further reduce elsewhere in the country, the average sale price of London prime properties has shown resilience throughout the past year, and we expect this to continue.

There is greater demand than usual from clients for turn-key properties – the appetite for ‘projects’ is low, so clients looking for a recently refurbished property in prime central London could really benefit from a buying agent. Often, we get access to these properties before they hit the open market and given that demand is outstripping supply, gaining that advantage will be crucial to being able to get the right property, in the right area at the right price.

We’ve also seen an increased demand for pied-à-terre properties in the capital as the shift to more permanent hybrid working patterns continues. I recently acted for a US client who was looking for a pied-à-terre. We helped them purchase an apartment in Knightsbridge’s most sought-after garden square address, right in the heart of the action, meeting their needs and giving them the perfect home from home. 

We’re also seeing a higher than average number of clients who currently rent but are deciding to buy. Unsurprisingly, rising rent prices in London are pushing some buyers to consider the trade-off between paying rent or buying a property and absorb the Stamp Duty – especially if they intend to extend their stay in London. Regarding other London hotspots, Marylebone, Chelsea, and Notting Hill continue to be popular choices amongst my client base, but London villages are also desirable. Locations like Wimbledon, Clapham, Barnes and Chiswick offer clients a short commute to the office with plenty of family activities on their doorstep.

As buying specialists, our local knowledge is critical if a buyer is searching for something particular. We can target specific houses. If the buyers are looking in a defined area, we will often already know the houses; if we don’t, we make approaches.

Buoying the stock levels for the rest of the year are those facing re-mortgaging who will assess their options on whether to hold on to a large family house, downsize or sell a second property. Add to this the uncertainty of a general election in 2024 and the Labour Party proposing to charge VAT on independent school fees, we may see vendors choosing to leave London in search of areas with excellent grammar schools.

In conclusion, with London and prime central London readying for a busy Q4, getting the right advice and expertise from an experienced buying agent is a wise decision. Get in touch with me here if you would like to carry on the conversation.

The Buying Solution in PrimeResi

Will Watson of The Buying Solution speaks to PrimeResi on the current trends in London’s prime property market and why it could be the right time to buy over the coming months.

Read more here

The Buying Solution in The Times

Will Watson speaks to Melissa York of The Times on why Turkish buyers are purchasing property in prime London postcodes.

Read more here

What are wealthy USA buyers looking for when purchasing a house in London?

I recently visited clients in New York to discuss opportunities and investments in the prime central London market.

The Buying Solution had a record year in 2022, our 19th year of business, and an important part of our success is overseas UHNW buyers from North America.

When I arrived in New York, it was clear that the City had undergone a significant transformation with many new buildings, parks, and other public spaces. For example, the Hudson Yards development, which opened in 2019, added a massive new complex of offices, residences, shops, and restaurants to the City’s west side. New York City has also seen improvements in transportation in recent years, with the expansion of bike lanes and the introduction of bike-sharing programs and new subway stations.

During my trip, I documented five key areas that USA buyers are considering when purchasing a house in London:

The market is in their favour

USA buyers can expect to pay less for a property in London compared with a few years ago. With stamp duty increases, Brexit and COVID, the average price for a property in central London is currently about 20 per cent below its peak in 2014. Also, in currency terms, the dollar is still relatively strong. However, buyers must act quickly to take advantage of the exchange rate.

London’s energy and culture

In a recent Financial Times article, I met with a wealthy buyer in Chiltern Firehouse – a restaurant and hotel in Marylebone. His family office was advising him to buy in Switzerland or Italy, but he sat with me, and the place was busy and vibrant. He said, “This is why I want to come to London. I may pay more tax, but life is for living”. He was right. London’s energy is difficult to beat – therefore, a move from New York to London means that a buyer does not experience a culture shock when they arrive – there is plenty to keep the family occupied. The food & beverage scene in London is second to none.

Discretion & safety

Privacy and security are top concerns for wealthy USA buyers, so features such as gated entrances, security patrols and ample outdoor lighting are some of the most essential. London is one of the safest cities in the world but security is still a concern and we have an excellent professional network to ensure our clients are comfortable with their new surroundings.

Design features

London is a design capital and is, therefore ideal for buyers looking for homes with unique architectural features, high-end finishes, and top-of-the-line appliances. In addition, design features like swimming pools, home theatres, wine cellars, private gyms, home technology and elevators feature heavily in London houses. Therefore, the types of properties desired by UHNW individuals can be found in London, if they are using the right buying agency.

Education & schools

The education system in London is strong and accommodates overseas students at both undergraduate and graduate levels. It is relatively easy to relocate to London with children of all ages and expect them to hit the ground running with their educational goals. We can also advise clients on which locations in London offer the most popular schools and then what that local housing market looks like.  

If you want to learn more about The Buying Solution and how we work with overseas buyers, please drop me a line.