Property Market Analysis: The Buyer’s Advantage and Rental Homes for Billionaires
The world of prime property is undergoing transformative shifts, and it’s essential to stay ahead of the curve. In this blog, we delve into three recent key findings of property market analysis that illuminate the present state of the market, and how prime property owners can leverage management to their advantage.
The Buyer’s Advantage in London and the South East
Zoopla’s latest index reveals a unique buyer’s market in London and the South East, with property vendors accepting offers 6.1% below the asking price on average. This translates to a substantial £25,000 reduction for the average home. Buyers in southern regions are reaping the most significant benefits, but discounts are evident across the UK, averaging 5.5% (£18,000). The market’s favourability for buyers is underscored by a 34% increase in homes listed for sale compared to the previous year.
At Bold & Reeves, we can help those wanting to sit on their property realise its full potential with a strategic property management approach that aims to reduce the total cost of ownership. Similarly, for those who are adding properties to their portfolio, we can help integrate our state-of-the-art technology to deliver peace of mind and value enhancement.
Property Prices to Rise in London Next Year
Chestertons forecasts a subdued period for the property market in the coming years, attributing this to a dip in UK house prices in 2023 – the first in a decade. While this signifies a market slowdown rather than a correction, the potential for small interest rate cuts in 2024 and 2025 could stimulate recovery. The expectation is for UK house prices to see a slight decline of -0.3% over 2024, while London will show a growth of 1.8%, largely due to the higher proportion of cash buyers in the capital.
On the rental front, Chestertons anticipates a moderation in growth as supply catches up with demand. This property market analysis presents an opportunity for investors, and Bold & Reeves is well-equipped to guide clients in optimising their rental portfolios amidst these changing market dynamics.
London’s Billionaires Turn to Rental Homes
Beauchamp Estates’ analysis unveils a notable trend among the global super-rich, particularly billionaires, opting to rent luxury homes in London rather than making super-prime property purchases (£15 million and above). Stamp duty and rising interest rates are cited as factors contributing to this shift. The report highlights a booming luxury rental market, with rents surging by 8.8% in prime London postcodes over the last year. While the sales market may experience fluctuations, the demand for high-end rentals remains strong. At Bold & Reeves, we are strategically positioned to offer tailored solutions for clients looking to capitalise on this growing trend.
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