Property in London: Is Now the Right Time to Buy, Sell, or Rent?

Properties in London are some of the most sought-after in the UK, if not the world, meaning the property market in London is one of the world's most dynamic markets. Prices in London are well-known to be much higher than the rest of England.

Three more neighbourhoods have recently joined the million-pound club, with South Hampstead, Ravenscourt Park and West Putney all now having an average house price of over £1 million. This begs the question: is it now the perfect time to act? 

Identify Your Target Neighbourhood

First, it’s vital to assess where the market currently stands. Prices of properties in Inner London remain much higher than in Outer London, though house prices on the whole remain in positive growth. In fact, changing work patterns and buyer demand have meant the property market in Outer London has outperformed Inner London in terms of growth. With more people moving to remote or hybrid working patterns, it has allowed for a shift to areas outside of easy commutable distances. Buyers are also more likely to prefer other factors, such as access to green space, gardens and house size, over a central location. 

All of this means that buying in London is a sturdy long-term investment, especially with mortgage rates now beginning to stabilise. However, it's no easy feat, with high upfront costs, huge buyer competition and challenges posed by taxes like stamp duty. 

Do Your Homework to Avoid a Slow Sale

Despite these challenges for buyers, recent market reports suggest London is currently a buyer's market, and experts have reminded sellers to be realistic in their sale prices. Research also suggests it takes sellers in the South of England longer to find a buyer than in other areas of the UK. In this market, and for those who may be looking to sell quickly, companies offering cash for houses become an attractive option. These cash buying companies guarantee a sale and offer to transfer funds in as few as seven days, compared to the often-lengthy processes posed by traditional estate agencies. 

If you are looking to sell, there are other ways you can increase your ability to sell quickly, such as staging and timing. Staging involves preparing the house so that it appeals most broadly to buyers, including decluttering, deep cleaning and redecorating. Timing refers to your time of sale, with spring widely reported as the best time to sell a house, with the period consistently seeing the most active buyers. 

The current rental market is another important option to consider in London, with rental prices now beginning to stabilise. Renting is a great choice for those who would struggle to front the costs of buying, or are after a more temporary choice than an investment decision. However, demand in the rental market in London remains high, with a decreasing number of rental properties available. In 2024, it was reported that around 45,000 private rental properties were sold in the years from 2021 to 2023. This deficit in the rental market has not been replenished, leading to increased demand. 

Overall, while it may currently be a buyer's market, buying and selling in London remain lucrative options. Despite demand issues in the rental market, as prices begin to stabilise in London, it can make a great solution for those not yet looking to make any purchasing decisions and to enjoy all London has to offer.