Endless love: The enduring appeal of PCL will overcome market obstacles in 2025
Imagine London's property market as a grand romance, where Prime Central London beckons with renewed allure in 2025. After years of modest courtship, the flames of passion are set to rekindle, promising a year of vibrant connections and heartfelt commitments.
The capital's charm is expected to attract new suitors this year, despite minimal growth in house prices anticipated, but many property pundits believe the London property market in 2025 could be poised for a passionate revival, as The city's heart beats stronger with the return of professionals to their offices, breathing life into urban areas and reigniting the demand for homes within the city's embrace.
However, as in all great romances, it's not all plain sailing and challenges persist! The scarcity of suitable properties presents a hurdle, and the anticipated changes in stamp duty may introduce complexities to this love story, although less so in the prime property market. Political decisions, economic shifts, and global influences will be key drivers of the prime property market in 2025.
With the pledge of falling mortgage rates and the enduring allure of London, the narrative leans towards a hopeful and prosperous union.
Prime Central London's timeless appeal beckons investors and house hunters to partake in this blossoming romance, promising a year where dreams of home and heart converge...
Whether you're a buyer, seller, landlord or would-be tenant, if you're looking for a property love match in Prime Central London this year, please don't hesitate to contact us.
We offer honesty, integrity and the desire for long-term commitment...plus a GSOH, which always helps ;)
Yours, as ever,
Simon and Tom
PCL Property Market Highlights - Winter 2024/25
Sales Market Highlights
2024 Sales Trends: Transactions increased by 4.9% year-on-year and 10% above pre-pandemic levels despite subdued activity in early 2024.
October Spike: Record-breaking sales in October (75% higher than the pre-pandemic average) due to fears of tax changes in Labour’s first budget.
Pricing Stagnation: Prime London sale prices declined slightly, with a -1.2% annual change in 2024.
Price Discounts: Average discount to asking prices stood at 8.3%, slightly higher than 2023.
Market Activity: Q4 saw a 20% increase in transactions compared to the same period in 2023.
Super Prime Market (£5m+)
Instruction Growth: New £5m+ listings rose by 20.1% in Q4 and 25.2% over the year.
Stable Pricing: Asking price reductions averaged 3.1%, lower than the broader market at 4.8%.
Lettings Market Insights
Supply Constraints: Rental stock dropped by 12.3% year-on-year in Q4, with affordable rental segments hit hardest.
Rising Rents: Annual rental growth accelerated to 4.9% in Q4, with Prime Central London achieving 7.1%.
Yields Strengthen: Prime London yields averaged 4.56%, up from 4.37% at the end of 2023.
Long-Term Observations
Prime Central London Resilience: Average house prices in Prime Central London have increased by 206% since 2000.
Neighbourhood Shifts: Mayfair and St. James’s led 25-year growth in value per sq. ft., more than quadrupling.
Contact us with any enquiries about sales, rentals or investments in PCL. info@roseandpartners.co.uk