London maintains global investor appeal – Property market update

The UK property market has entered one of its busiest periods since 2015 — the competition to sell is at its peak in a decade. This surge in the number of listings has turned the tables in favour of discerning buyers as they can now benefit from a wide choice of properties, with a stronger negotiating power.

That said, sellers pricing their properties realistically in this fast-paced market continue to find success, with agreed-upon sales up by a solid 9% compared to last year.

Upward trajectory in London house prices

Despite global economic turbulence, house prices in the UK have stood the test of time. Our latest quarterly market index indicates that prices have grown 3% year-on-year across the country — maintaining a positive momentum for the third consecutive quarter.

London is growing at a slower pace, with a 0.9% annual increase and an average price now at £581,641 — however, it still marks a remarkable 92% increment above the national average of £302,464. Rightmove’s data further highlights a 1.3% increment in London property prices over the past 12 months — translating to a gain of £9,046 per property.

This rise continues to underscore London’s sustained desirability amongst buyers — particularly those from overseas, prioritising long-term capital appreciation.

Anticipated delays

New seller activity in the UK property market is up by 8%, matching the 9% rise in completed sales. This figure is a clear indicator of buyers’ underlying confidence despite the expiration of the temporary SDLT (Stamp Duty Land Tax) reliefs.

The conveyancing system is still strained, with almost 575,000 transactions lined up. Due to this, buyers and sellers are advised to be prepared for potential delays and onboard professional support to navigate this backlog hassle-free.

Steadying mortgage rates

Financial institutions all over the globe are working towards curbing inflation without choking economic growth — for this, central banks have paused their rate hikes. Mirroring the US Federal Reserve and China’s central bank decisions of revising rates to 4.5% and 4.25%-4.5%, respectively, the Bank of England (BoE) held its base rate at 4.5% in March 2025.

The average mortgage rate in the UK now stands at 4.74%, slightly down from 4.84% in 2024 and significantly lower than its 6.11% peak in July 2023. Inflation sits at 3% currently, still above the BoE’s 2% target — but moving in the right direction.

£100 Billion investment towards London’s economy

Mayor Sadiq Khan recently revealed a £100 billion growth strategy designed to move London into a decade of sustainable economic expansion. This initiative will help investors with lucrative rental yields and capital appreciation potential.

The £100 billion investment will be divided in a way where approximately £300 million is allocated for funding skills to create over 150,000 jobs. Additional investments will be made towards improving transportation, such as extending the DLR to Thamesmead and pushing the Bakerloo Line to Lewisham.

Benham and Reeves successful Asia tour

Our leaders, Anita Mehra and Marc von Grundherr, recently completed a successful leg of the Asia tour. They held one-to-one consultations in hubs like Dubai, Hong Kong and Bangkok and established direct engagements with savvy investors.

London property buyers in all these countries were offered insight into the capital city’s current market conditions and property trends. The advantages of a hands-free London lettings and management experience were also discussed.

Bulletin of Benham and Reeves’ global showcases

Hong Kong

Benham and Reeves Hong Kong introduced discerning buyers to exclusive previews of Damac Lagoons, Dubai, Luxury Swiss Alps hotel residences in Andermatt and The London Square Collection — which covered new builds in Twickenham, Wandsworth, Nine Elms and Croydon

Malaysia

Our local team showcased Southmere — a picturesque lakeside development in Thamesmead, near Abbey Wood (Elizabeth Line), offering lucrative yields up to 6%

Singapore

Property investors were introduced to some rare homes in London Square, Wandsworth Common. They also learnt about investment-driven launches near Oxford and Cambridge

Thailand

We discussed beneficial property opportunities for waterfront homes at Royal Arsenal Riverside and luxury properties from the Berkeley Capital and London Square with the Thai investors

Moderate but promising UK rental growth

Rents for private households across the UK rose by 3% year-on-year — marking a slowdown from the 7.4% surge in 2023 but a promising trajectory. With average rents now standing at £15,400 per year, affordability continues to remain a concern. The good news is, London continues to be the most competitive rental market with 9.9% annual rent inflation. In fact, the average monthly rent in the capital surged to £2,166 — more than double the national average of £1,059.

Demand rapidly outstrips availability despite an 11% increase in rental supply — with reports suggesting almost 12 tenants competing for every listed property.

Benham and Reeves Hong Kong SAR

We established our Hong Kong office in 1995 and since then, it has been a trusted bridge between Hong Kong-based investors and the London property market. Our local team serves clients across Hong Kong SAR, China, Macau, Taiwan and Japan and is fluent in English, Cantonese, Mandarin and Tagalog. This advantage allows us to deliver a seamless, one-stop solution for a global clientele.

We offer assistance to Hong Kong buyers with property acquisition and sales, lettings and full property management, mortgages and rent collection and maintenance. Our clientele also has the advantage of being connected with the London offices in real time, with all legal and property-related matters handled in-house.

Why Hong Kong buyers prefer London property

A significant chunk of property transactions in London was done by Hong Kong investors in 2024, with over 13.5% of all international transactions. The reasons for this are clear — London offers investors a stable market with long-term growth potential. They also benefit from a transparent, mature market with access to a plethora of educational hubs. Another reason for this popularity is that the rental ecosystem promises high occupancy and returns.

As a Hong Kong investor, when you work with Benham and Reeves, our in-house lettings and management team will help ensure reduced vacancy periods, swift tenant placements and stress-free ownership — all without needing to leave home.

Whether you are buying your first London apartment, expanding your property portfolio or selling, our local team is here to offer trusted advice backed by global expertise.

Get in touch with us today to explore beneficial property investment opportunities in London.