Our agents anticipate a buoyant London property market in 2025, with growth and demand accelerating
Looking ahead to 2025, the Capital’s property market shows signs of a fresh cycle of growth and resilience, with predictions pointing to a year that could see London outperforming other regions. According to Aneisha Beveridge at Hamptons International, this new phase may mark a turning point. “We anticipate a three per cent rise in house prices across Great Britain next year,” she says. “2025 will also mark the start of a new property cycle when London starts outperforming other regions with four per cent growth.” For those keeping an eye on the market, this could signal a valuable opportunity, particularly as demand in the city remains strong across the board.
London’s rental market is expected to remain equally robust, with increasing pressures set to drive rents higher in 2025. Aneisha projects a four per cent increase in rental prices, commenting that rental growth is likely to outpace both inflation and house price growth, meaning tenants may find themselves facing steeper costs in the coming year. This high demand for rentals isn’t surprising, as the Capital’s enduring appeal – for work, study, and lifestyle – continues to draw both local and international interest.
We have continued to witness significant activity in the Prime and super-Prime sectors Grant Bates, Hamptons
The Prime and super-Prime sectors, however, stand out as exceptional in their resilience and demand. Hamptons’ Grant Bates notes that “Despite any political uncertainty, and following the outcome of Rachel Reeves’ Budget, we have continued to witness significant activity in the Prime and super-Prime sectors and expect this to continue in 2025.” Recent deals, like a £70 million property exchange – one of the largest in London this year – underscore the continued appetite for luxury properties in the Capital. Grant highlights London’s lasting appeal to high-net-worth individuals. “Compared to many other global locations, London maintains its reputation for economic and political stability, coupled with an excellent educational system,” he says, adding that these factors sustain the city’s attractiveness as a destination for property investment.
The London allure extends beyond the high-end market, with sales activity reaching record highs in neighbourhoods across the Capital. Mark Sumray at Dexters describes a particularly active year in 2024, and he doesn’t anticipate this pace slowing as we enter 2025. “This year has been our busiest to date as we are carrying out over 50,000 viewings every month, the equivalent of showing a property every 15 seconds in our working week.” He notes the strength of demand from both local and overseas buyers, with many planning moves for the new year. Mark advises that, for anyone considering putting their property on the market, now may be an ideal time to attract interest from motivated buyers amid this bustling activity.
Knight Frank’s Declan Selbo also shares a positive outlook, summing it up: “With the UK budget and US election now behind us we can hopefully begin to look forward towards recovery and growth. With UK housing activity having been subdued over the past year, there is much pent-up demand ready to be unleashed, coupled with motivated sellers – perhaps the perfect storm for 2025.”
