As an estate agent with 11 years of experience, I’ve been closely monitoring the dynamics of London’s property market for many years. Today, I’d like to share my analysis of the current situation and prospects for this sector.
London, the most populous capital in the United Kingdom, has always been one of the world’s most expensive cities in terms of property. In August 2023, the average flat price in the prestigious borough of Kensington and Chelsea reached an impressive £1.15 million.
That’s £700,000 above the London average. For comparison, the average house price in England in 2022 was around £286,000.
Since 2015, chosen as the base year for the UK House Price Index, house prices in London have risen by more than 30%. However, even the London market hasn’t escaped the impact of economic shocks. From August 2022 to August 2023, flat prices in some London boroughs fell by 10%.
This trend continued into 2024. According to the ONS House Price Index, in March 2024, the average house price in London decreased by 0.9% to £499,000 – the lowest figure since mid-2021. And the annual rate of decline slowed from a peak of 4.7% in January to 3.4% in March 2024.
At the same time, data from Rightmove shows that the average price of London homes coming to market increased by 0.1% in the year to May 2024.
The average asking price in London in May was £697,000, slightly higher than the previous peak of £696,500 in May 2023.
At the borough level, there’s significant differentiation. The growth in asking prices was highest in Hammersmith and Fulham and Camden at 6.5%, followed by Merton at 6.3%.
The biggest drops were in Hackney (3.3%), Wandsworth (1.6%) and Barking and Dagenham (1.1%).
Despite the short-term decline, the long-term market prospects remain positive. According to a forecast from March 2023, further price growth is expected over the next five years.
Unfortunately, I’m aware of alarming instances of complex fraud schemes that pose a serious threat to property owners and buyers. I’ll briefly describe two of the most common ones.
Title and registration fraud
This is one of the most insidious types of fraud, where criminals manipulate data in the Land Registry to change the legal owner of a property. Vacant or rented properties are particularly vulnerable.
Advice: I strongly recommend setting up alerts for any changes to your property record in the Land Registry via this link: https://propertyalert.landregistry.gov.uk/propertyalert/.
Identity theft and impersonation
In the digital age, fraudsters have learned to create convincing fake identities or steal real ones to impersonate key participants in property transactions.
Payment diversion fraud is particularly dangerous, where criminals hack into correspondence between solicitors and clients, redirecting large sums to fraudulent accounts.
Advice: Always verify bank details through a secure, separate channel before making large transfers. An effective strategy is to first send a test amount of £10 and confirm its receipt.
Given the current market situation, I would offer the following advice:
- Thoroughly research the areas: the price difference between boroughs can reach hundreds of thousands of pounds.
- Consider interest rates: they’ve risen significantly over the past year, affecting mortgage affordability.
- Consider buying property in need of renovation: this can be a profitable investment.
In conclusion, one could say that the London property market is going through a period of adjustment, but fundamental factors such as limited supply and stable demand continue to support it in the long term.
Yours sincerely,
Olivia Smith, estate agent, London
