London Property Pulse

Welcome to our new Chestertons London Property Market Review

We are delighted to introduce our new seasonal Property Market Review, which will be published quarterly, with additional analysis published each month to ensure the information we provide is always up to date.

The detailed market review covers how the economy is performing, what’s happening politically, any legislation that might impact on the property market and looks at what’s happened in the past, what’s happening now and what is likely to happen in the next quarter.

Here’s a summary of the London Property Market:

• London property recovering: Following a period of small falls after a rapid increase in mortgage rates since 2022, property prices in London started to recover in the last quarter of 2024.

• Buoyant wage growth supports the market: Strong wage growth has been a positive factor in the recovery of property transactions and prices, helping people afford mortgages and new purchases.

• London's rental market is experiencing high demand and rising rents: The London rental market is characterised by extremely high demand versus supply since the pandemic, resulting in rent increases at a higher rate than the rest of the UK.

• The end of the SDLT temporary reduction may initially impact buyers: The return to the normal Stamp Duty Land Tax (SDLT) levels post March 31st is predicted by some to potentially restrain buyers, particularly in London, as it could mean having to raise an additional £2,500 to £15,000 depending on the property price.

• The Renters Rights Bill will increase tenant security: The upcoming Renters Rights Bill (RRB) will provide renters with more rights, including the abolition of Section 21 evictions and an extension of the notice period landlords must give for eviction to four months. Tenants will also have a minimum tenancy period of twelve months but only need to give two months' notice to leave.