March 2024 London Property Market Update

The London property marke has seen significant shifts in property prices, buyer behavior, mortgage rates, and external factors impacting the market.

Average Property Price Increase
 

In March 2024, the London property market witnessed a notable increase in average property prices. Data reveals a 1.5% rise. This uptick marks a promising start to the year, with a 13% surge in sales agreed. Such statistics are indicative of a postive market atmosphere, with opportunities for both buyers and sellers.
 

Optimal Timing for Property Acquisition

March-May2024 is an ideal time for property acquisition in London. Average prices remain below the peak observed in May of the 2023, promising affordability and value for prospective buyers. Moreover, heightened buyer demand and increased enquiries in the first quarter further affirm the psoitve landscape for property transactions.
 

External Factors Influencing Market Dynamics
 

In the context of March 2024, certain prevailing conditions have exerted notable influence. Factors such as a tepid Spring Budget, coupled with limited mortgage options and the absence of assistance for first-time buyers, have contributed to market fluctuations. The amplifies the need for stakeholders to remain vigilant and adaptive to external market factors.
 

Importance of Pricing Accuracy
 

As emphasized by industry experts, pricing accuracy is the most important step for achieving successful property transactions. Properties priced judiciously tend to attract greater interest from buyers and investors, resulting in faster sales.Properties priced too high, risk prolonged periods on the market (10% longer), leading to eventual price reductions. Seeking professional valuation services is advised, with experienced property consultants offering invaluable guidance in this regard.
 

Insight from Sales Manager
 

Insights from industry professionals shed light on prevailing market dynamics and buyer behavior. Andrew Assaker, our Sales Manager, underscores how through evolving search patterns and increased reliance on online platforms, buyers exhibit heightened scrutiny towards pricing. Andrew recommends approaching estate agents in property valuation processes,stating a direct correlation between inaccurate pricing and prolonged listing durations.
 

Demographic Trends in Buyer Composition
 

Examining demographic trends within the buyer segment unveils intriguing insights into market dynamics. Rightmove's data reveals a projected surge in sales agreed for the year, surpassing the one million mark. Notably, March 2024 has already witnessed a 13% increase in sales agreed. The market is primarily led by individuals less sensitive to mortgage rates, particularly in the upper echelons of the ladder sector, where sales have surged by 18%. Additionally, buyers are exhibiting a preference for larger homes, further contributing to market momentum.
 

Impact of Mortgage Dynamics
 

Mortgage dynamics exert a significant influence on property market trends, with affordability and interest rates playing pivotal roles. While higher mortgage rates and affordability constraints persist on a national scale, the London market remains resilient in the face of these challenges. However, to facilitate widespread market growth, an improved mortgage offering by lenders is deemed essential. Such enhancements are expected to stimulate demand across all property segments, beyond the super-prime real estate category.
 

London Market Overview - March 2024


The average property price stands at £686,844, reflecting a monthly price change of +0.6%. Sales agreed have surged by 13%, indicating a heightened transactional activity within the market. Buyer demand has escalated by 10% compared to the previous year, indicating sustained interest in London properties. Despite challenges posed by mortgage dynamics, the average five-year mortgage rate remains competitive at 4.84%.
 

For more infromation contact our sales team at Sales@Fraser.uk.com